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California Budget to Get Huge Windfall from Facebook IPO

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(Sacramento, CA)
Tuesday, May 15, 2012

California desperately needs some good budget news.  And that's where Facebook comes in.

Sisney: "It's a really big deal."

Jason Sisney is with the non-partisan Legislative Analyst's Office.

Sisney: "Because with the IPO, there will be a series of financial transactions - beginning Friday - that will generate a lot of taxable income for a few thousand Californians."

Particularly Mark Zuckerberg, who by one estimate could pay hundreds of millions of dollars in state taxes himself.

Sisney: "It will not be a panacea - the state's budget problems are much bigger than this amount of money.  But it's a real help and it is a bright spot in the state's economy."

Sisney is projecting a one-time windfall of about $2 billion - roughly two percent of the state budget.  But he says the state could net a few hundred million less - or a billion or two more.

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