Nearing budget deal

It’s a hopeful day in Sacramento. Gov. Arnold Schwarzenegger and legislative leaders have settled on at least the framework for closing a $42 billion budget gap. Floor votes in the Assembly and Senate are planned for Friday (plenty of time for interest groups on both sides to gum up the deal). From the LAT:

Scheduled cost-of-living increases for welfare recipients would be canceled, and mental health and early childhood education programs created by voter-approved ballot initiatives would be cut by more than $830 million. The state would cut spending on local public transit by $459 million. Californians would also take a substantial hit in their wallets. Vehicle license fees would nearly double, going from the current rate of 0.65% to 1.15% of the value of a car or truck. The sales tax would increase by 1 cent, raising the rate in Los Angeles County to 9.75%. Gasoline taxes would increase by 12 cents a gallon. And Californians would pay a new surcharge on their personal income taxes, amounting to 2.5% of their total tax bills.

It ain't over until it's over, of course, but I suspect this time will be the charm. Obstructionism at this point is not a wise policy position - not with the state on the verge of being in default. By the way, some of the cuts and borrowing might be offset by billions of dollars in federal stimulus aid.