As a tax accountant I know of several deadlines that fall on June 15th. If you were out of the country on April 15th, June 15th is the deadline to file your tax return (or file an extension). June 15th is also the date of the second quarter estimated tax payments for individuals and corporations. This year, though, June 15th is yet another deadline.
That’s the day that California needs to have a balanced budget or the state will be unable to borrow funds according to Governor Schwarzenegger. California faces a $24 billion deficit for the 2009-2010 fiscal year that begins on July 1st.
I doubt we’ll see a budget deal done by the deadline. Democrats are continuing in their normal ways of pandering to their constituents (unions). Senator George Runner’s commentary on AB656 shows that at least one Democrat has no comprehension that higher taxes lead to lower sales.
Unfortunately, until the elected officials feel pain I don’t think we’ll see a resolution to the crisis. Democrats are floating the idea of getting bailed out by Washington. As long as they think that’s a possibility meaningful cuts in California’s budget won’t occur. I hope I’m wrong about this but I doubt it. I expect this budget mess to drag on into the fall.