taxing services in California????

One way to raise revenue would be to apply sales tax to services, such as those provided by attorneys, accountants, consultants, architects and auto repair shops, Levy said.

"This has been widely discussed around the country for 10 to 20 years. We are a service economy, and we have this sales tax (on goods) that's doomed to grow slower than the economy," he said.

According to his research, California's services industry is worth about $700 billion a year, the biggest chunk representing health care.

That alone could raise about $10 billion in additional revenue to the state and local governments, Levy said.