Independent Contractor Withholding Not in California State Budget

The governor and legislative leaders reached agreement this week to bridge the $26.3 billion state budget gap, which was approved by both houses of the legislature on Friday. The agreement does NOT include the 3 percent independent contractor withholding proposal. C.A.R. aggressively opposed this over withholding scheme. The agreement includes about $15.5 billion in state budget cuts, as well as $1.2 billion in cuts to prisons, and another $4.7 billion in cuts to, and borrowing from, local governments.