April is the state's big revenue month, as personal income taxes flow into the Franchise Tax Board and refund checks flow out (leaving me a whopping $200 richer). Unsurprisingly, this April's receipts were significantly below expectations:

April, by far the largest tax collection month for California, ended in a whimper, coming up more than $1.8 billion short in personal income and corporate taxes.

California was about $750 million short of projected tax collection after March, and April's shortfall puts it $2.5 billion behind for the fiscal year ending June 30.

So we're already $9 billion in the hole. If Propositions 1C, 1D and 1E fail, as it looks like they will, then the deficit could grow to $16 billion.

The size of the May 20 deficit suggests the need for Democratic legislators - the same people who constantly ask "what's YOUR plan?" of progressive opponents of the flawed May 19 propositions - to answer that question themselves. A $9 billion deficit doesn't seem like a good time to straitjacket ourselves further with a spending cap and a "rainy day fund on steroids" via Prop 1A, or blow a $2 billion hole in the budget by selling more lottery bonds than there are lottery revenues.

And so today Dan Walters asks the same question I asked a couple weeks ago - What's Plan B?:

More taxes? Rejection of Proposition 1A, the linchpin measure, would not only short-circuit the taxes enacted in February but probably make any additional levies politically impossible. Democratic leaders could try again to enact taxes without Republican votes but would face a legal challenge and political fallout. A massive bailout from Washington? Unlikely.

This is an immense mess, partly caused by the recession, partly caused by years of fiscal irresponsibility. And it may be the day of reckoning that Capitol politicians had long avoided, compounded by the obvious anger of voters....

Wholesale slaughter of state spending may be their only option. This is a pivotal point in California political history, a fiscal Armageddon.

This is where the absence of a coordinated progressive and Democratic pushback against the demand to cut spending and the ideologies that underlay it is so vital. Instead Democratic legislators have cast the post-May 19 spending cuts as somehow inevitable, instead of rallying the base to fight those cuts. Had that rallying effort been done I am convinced that there would be greater support from Democrats and progressives for the May 19 propositions.

The May 20 strategy, as I see it, involves at least these pieces:

• Majority vote budget



• Wealth taxes



• Reverse corporate tax cuts



• Push repeal of the 2/3rds rule



• Immediate and meaningful prison reform



• Legalization, regulation and taxation of marijuana

Walters speculates that with record low approval ratings the legislature isn't in any position to lead these kind of changes. Here I disagree. I think their low ratings are precisely /because/ they haven't yet offered these kinds of solutions.

The other argument is of course that none of the above are possible because of Republican obstruction. But that's begging the question. It is *long past time to challenge Republican obstructionists.* This is a party that has hardly any public support any longer. They are vulnerable to attack.

The best place to start is higher income taxes on the wealthy. 75% of voters support those taxes, according to the recent Field Poll. Democrats should pick a *big* fight on that starting on May 20. Force Republicans to use the 2/3 rule to kill those taxes - and you've got yourself on hell of a winning issue for 2010. Or you actually force Republicans to climb down and back those taxes.

The point is that no matter what happens on May 19 we're going to have a massive deficit and therefore a fight on our hands on May 20. Let's come together as progressives and Democrats, no matter our views on the propositions, to prepare to win that battle.