Budget magicians use sleight of hand to help close California's

0 Comments | Oakland Tribune, Jun 22, 2009 | by Mike Zapler

"Very good point," the governor responded.

Reach Mike Zapler at 916-441-4603 or mzapler@mercurynews.com.It's budget magic!

Here are some of the one-time accounting maneuvers Gov. Arnold Schwarzenegger and legislative Democrats have proposed to help close the $24 billion deficit -- at least on paper. -- Increase taxpayer's paycheck withholdings by 10 percent and accelerate estimated tax payments by individuals and corporations. The proposals don't change how much anyone owes, but they allow the state to grab more tax revenue earlier in the fiscal year. Impact: $2.3 billion-- Impose a 3 percent tax withholding for payments to independent contractors. Impact: $2 billion-- Delay the June 2010 state payroll by a single day, from June 30 to July 1, thereby moving that payment into a different fiscal year. Impact: $1.2 billion-- Sell a portion of the State Compensation Insurance Fund. Impact: $1 billion. (The independent Legislative Analyst's Office called it "very unlikely" that the state would be able to pull off such a sale by next June.)- - Shifting money from various accounts, such as gas taxes that are normally earmarked for transportation improvements, to boost the general operating fund. Impact: $2.5 billion

Source: Gov. Arnold Schwarzenegger,

Democratic legislators