Yesterday was a particularly surreal chapter in the ongoing California budget crisis. First Don Perata says he's reached an agreement with governor Arnold Schwarzenegger on the budget. Four hours later, he takes it all back, saying that negotiations remain at an "impasse," according to the Sacramento Bee.
But at least now we know something about what the future budget compromise will probably look like. Here's what the two sides almost agreed to: a temporary sales tax hike, a spending cap tied increases in tax revenue and population, a rainy-day fund to get us through the lean times...but the governor will not get the power to unilaterally cut spending wherever he wants if revenues dry up in the middle of the budget cycle. Apparently, the deal fell apart on the details of the spending cap. But although the Bee reports that both Democratic and Republican Assemblymembers tossed schoolyard taunts at each other, this latest development offers a sign that a deal may be in the works.