Ca Budget Vote

8/17/2008 Sacramento, CA The plan calls for six billion dollars in tax increases on the wealthy and corporations. That includes a one percent income tax increase on joint filers making more than $321,000 and a temporary suspension on the deductions businesses can take.

The plan also reinstates a higher corporate tax rate.

Democratic leaders say it's important to vote on the budget even though the plan is expected to fail. Republicans, whose votes are needed for a two-thirds vote, say they refuse to burden people with taxes while the economy remains weak.

Legislators don't get paid during the budget stalemate, and neither do their staff members. That's hundreds of people who may be the hardest hit by the impasse.

Sarah Reyes, Chief of Staff for Juan Arambula, says "You know, it's hard. A lot of them are trying to get zero interest loans, but the banks don't realize there's not a budget. Others are dipping into their savings because they don't have an ability to get a loan. It's difficult, but we all know it's part of the job."

Reyes says she warned staff members three months ago to be ready for budget troubles. They'll all get back pay once a new budget passes.

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