State Budget, Budget Crisis | featured news

In a recession, state lawmakers are taxing personal vices. It’s good for you, they say, but it’s really better for their budgets.

Spurred by budget crises, California and Michigan together reduced their prison populations by more than 7,500 last year, contributing to what a new report says is the first nationwide decline in the number of state inmates since 1972.

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.

Legislative leaders emerged from late-night budget negotiations Tuesday to announce they were closing in on a final agreement on how to address the state's $26.3-billion deficit.

A pro-marijuana group is launching another television bid to legalize pot in California — this time with the pitch that legalizing and taxing the drug could help solve the state's massive budget deficit.