Everyone is going to be effected by the new budget. When the new budget was first engineered it failed to gain the two-thirds vote that was needed, and the Democrats were trying to pursuade just one Republicn. Eventually the Democrats agreed to ban legislative pay increases during deficit years, and they eliminated a 12 cent gas increase that they planned on putting in. Maldonado, the senator who agreed with these circumstances, also made California political primaries open and nonparisan.

The new budget has $15 billion in spending cuts, $ 12.8 billion in temporary taxes, they borrowed $11.4 billion, and they made a new reserve fund with $1 billion. If the state recieves money from the nation some of the taxes will be reduced and the borrowed money should be cut in half. Billions of dollars are going to be out of schools, and healthcare institutions, sales tax is going up by 1 percentage points, and the licence fee is raised to 115% of the old price. Although the gasoline tax has been shot down, residents income tax rates were raised by a quarter of a percentage point. Althought the new taxes are only supposed to last two years it could be extended for another two years by the voters. But all that being said small businesses are going to be given tax breaks, and so are some parts of the movie industry which is huge in California. Both tax breaks are considered huge wins for Republicans who just wouldn't give in.