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Californians still wrangling over budget

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Just in case you were planning on using that aforementioned $10,000 California tax break to buy a newly built home, perhaps you shouldn’t rush out to purchase it just yet. That budget was still not signed Wednesday morning. From ‘California Budget Negotiations Hit a New Snag’ at latimes.com:

As California’s government continued its grinding downshift toward insolvency, efforts to close the state’s nearly $42-billion budget gap hit a new snag late Tuesday as Republicans in the state Senate ousted their leader.Around 11 p.m., a group of GOP senators, unhappy with the higher taxes that Senate leader Dave Cogdill of Modesto agreed to as part of a deal with the governor and Democrats, voted to replace him in a private caucus meeting in Cogdill’s office. They chose Sen. Dennis Hollingsworth, a staunchly anti-tax lawmaker from Murrieta, as their new leader.... That plan could still survive the leadership change. Three GOP senators abstained from voting this morning. They also refused to take part in Cogdill’s ouster, sitting out the caucus vote on his replacement. Those lawmakers have been in negotiations with the governor and Democrats about possibly supporting the bipartisan budget plan.A fourth GOP lawmaker, Sen. Abel Maldonado of Santa Maria, voted against the taxes this morning but has stated publicly that he might support them if various government reforms were added to the package. He was sharply critical of his caucus for removing Cogdill.’I just can’t believe in the middle of the night we’d oust our leader,’ he said outside the caucus meeting. ‘It’s the wrong time to make a change in this process.’The frenetic day had begun with legislators carting sleeping bags, pillows and suitcases to work. Sen. Ron Calderon (D-Montebello) brought a bottle of cologne. Republican Sen. Sam Aanestad, an oral surgeon from Grass Valley, passed out toothbrushes. Cots were ordered from the state Office of Emergency Services.

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I know this post is only ever so weakly linked to real estate but I defend it on the grounds it could be useful information for people considering relocating to California.

--Lauren Beale

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