California Budget Deficit, State Budget | featured news

The ratings agency Standard & Poor's warned on Tuesday that it could downgrade California's financial outlook if lawmakers don't pass a credible budget plan this year.

Republicans decry the plan, which relies on a revenue windfall that, if it fails to pan out, will trigger big cuts. Abandoning negotiations with Republican lawmakers, Gov. Jerry Brown struck a deal with Democrats for a budget that assumes billions of dollars in fresh revenue — but could lead to major service cuts if the money doesn't materialize.

Tax income has been outpacing forecasts — good news as Sacramento struggles with a $15-billion budget deficit. GOP leaders are already using it as fodder against Gov. Brown's proposed tax increases.

Gov. Jerry Brown plans to hit the road next week, taking his case for more taxes directly to voters following the collapse of budget negotiations in Sacramento this week.

Schwarzenegger vetoes nearly $1 billion for social programs before signing the budget bill lawmakers had passed about eight hours earlier. Advocates for the poor say the cuts are too deep.Gov.

A top California lawmaker said on Friday the state's leaders had reached a final agreement on closing a $19.1 billion deficit to balance the state budget, ending a record stalemate over a spending plan.

California faces a nearly $21 billion budget gap over the next year and a half, extending a fiscal crisis that already has led to steep cuts to public schools, social services and health programs.

After several days of debate, half of California lawmakers signed off on a budget deal that closes a $24 billion gap and shores up state finances, for now.

California's Senate approved a package of bills early on Friday morning that would balance the state budget by closing a $26.3 billion shortfall threatening the finances of the government of the most populous U.S. state.

California lawmakers finally sealed a deal with the governor on a plan to close a $26 billion budget gap.