Calif. Counties Threaten Tax Revolt Against State

“California counties are throwing another wrinkle into the state’s cash crisis as Gov. Arnold Schwarzenegger and legislative leaders try to agree on a way to erase a $42 billion budget deficit.

Several counties are considering some form of tax revolt — either filing lawsuits or delaying tax payments to the state — because the governor has proposed withholding payments to them for as long as seven months in a move to preserve cash.

Local governments already are missing out because the state has imposed a 30-day payment delay to counties. . . .

Meanwhile, Standard & Poor’s downgraded the state’s $46 billion general obligation bonds this week, leaving California with the worst state credit rating in the nation.” (Read more from cbs13.com)

Maybe the counties are tired of spending $10 billion a year to keep people in prison.

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