No Deal Yet on California Budget

Reports earlier today indicated that California Governor Arnold Schwarzenegger and legislative leaders had reached a budget deal:

The plan calls for increasing the state sales tax by 1 percent, increasing gasoline taxes by 12 cents per gallon, raising the fee for licensing vehicles to 1.15 percent, and raising personal income tax across the board.

The Governor’s office, however, denies that a deal has been reached yet.

California’s perpetual budget crisis, how it happened, and what can be done about it, is covered in our new state budgets report released today.