Los Angeles Times
Washington's avoidance of the so-called "fiscal cliff" is generally good news for California's finances. But the deal approved by President Obama on Wednesday will still take a bite out of the state budget. The legislation won't allow California and other states to keep a portion of revenue from the federal estate tax, a levy on wealth inheritance. California hasn't received any revenue from the tax since 2004, and analysts doubted that Congress would reverse course and restore the money. But calculations by Gov. Jerry Brown and Democratic lawmakers still included $335 million in such revenue over the next year and a half. They estimated the revenue would soon grow to at least $1 billion annually.
