Stimulus likely won’t avoid extra tax hike

Gov. Arnold Schwarzenegger’s Department of Finance estimated Wednesday that California will not receive enough federal stimulus money to avoid higher personal income taxes and deeper cuts in social services.

Officials said California will fall $2 billion short of the $10 billion threshold the state must receive to eliminate $1.8 billion in additional income tax increases and $948 million in further spending cuts negotiated as part of the budget deal Schwarzenegger signed Feb. 20.

Stimulus likely won’t avoid extra tax hike - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee.