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California $3 Billion in the Red

The budget may have passed, but the economy worsened and the state grew more in debt prompting Gov. Schwarzenegger to call legislators back to work before the Nov. 30 end of session: From LAT: "The state budget, passed in September, is already at least $3 billion in the red. Analysts expect that deficit to grow as revenue continues to plunge amid economic uncertainty. Lawmakers would be asked by the governor during a special session to consider emergency cuts and possible tax increases. Administration officials say they are working on the plan they will present." If taxes are raised, that can't be good for Measure R, the LA County proposal of raising the sales tax one half-cent for transportation projects.