Even someone like me who blogs on news tidbits is amazed at the speed these days with which chatter by various sources can turn into a full blown news story.

Such was the case this afternoon, with two news organizations reporting a possible 1% increase in the state sales tax to close the budget gap, an increase reportedly placed on the negotiating table on Sunday by Governor Schwarzenegger.

Both stories rely on unnamed legislative sources, and state that Schwarzenegger is demanding reform of the budget system in exchange.

Both stories come after the proposal was widely buzzed about in emails, phone calls, and chats all day long.

The governor's office won't comment on the reports, other than to say Schwarzenegger's demand for a budget reform proposal is a big deal.

Setting aside the veracity of the proposal, it's worth noting the many obstacles in the way of a temporary sales tax increase... not the least of which are the no-new-taxes pledge of legislative Republicans, or for that matter, the same long-standing stance of the governor himself.

A 1% sales tax hike first surfaced in May the governor's revised budget, when he said it was a backup plan if voters failed to approve a lottery bond proposal in November to help close the budget gap. At the time, the Legislative Analyst's Office said the proposal would bring in $6 billion in a full fiscal year.

But given that legislative Democrats have pegged the need for new revenues at about $8 billion, that means you still need more cash.

Futhermore, budget watchers say it's important to remember that a sales tax increase doesn't mean that all of that moolah will go to the state's general needs. Nope... thanks to the school funding guarantee, Proposition 98, a portion of those new tax revenues would go directly to education.

And that's not all. If you know nothing at all about Prop 98 (and hey, who does?), know that Prop 98 funding each year is driven by a formula based on the previous year's funding level.

So what happens when the temporary sales tax hike expires? $6 billion in revenues go away... education spending remains at its higher level based on those one-time tax revenues... and now there are new pressures on finding enough cash for all other state government programs. And this scenario doesn't even deal with criticisms that a sales tax increase would most hurt those who can least afford it.

In other words, it's a lot more complicated... and maybe more risky... than it seems.