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Breaking Down the Democrats’ Majority-Vote Budget


The spending plan put forth by legislative Democrats Wednesday doesn’t include the governor’s proposed tax extensions. Instead, it uses a mix of other solutions to fill that $10 billion gap.

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The first thing you might notice if this budget passes is what happens to your sales tax. It's supposed to drop by a full percent at the end of this month, barring an extension. But the Democrats' plan uses something called the "single flip" to hang on to a quarter of that percent.

The spending plan also includes some new cuts. For example:

  • Three billion dollars less for K-12 education, which matches what the governor proposed back in January.
  • $150 million reductions to the UC and CSU systems.
  • And a $200 million cut to the courts.

The universities and courts already took big hits back in March.

Other solutions include relying on unexpected revenues and a renewed effort to seize $1.7 billion from California's redevelopment agencies. And it also includes what's being called the "Amazon tax," a measure requiring online retailers to collect sales tax.

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