Published On: Mon, Jul 2nd, 2012

Jerry Brown proposes California budget solution: raise taxes

Governor Jerry Brown signed a new budget for California on Wednesday that relies heavily on voters approving his proposed tax hikes in November.

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Democrats passed 21 budget implementing bills on a majority vote intended to satisfy the governor’s demand for deeper cuts to close a $15.7 billion deficit, and Brown signed the main bill in the courtyard of his Capitol office just hours before a midnight deadline. His staff was expected to detail line-item vetoes Thursday.

“This budget reflects tough choices that will help get California back on track,” Brown said in a statement. “I commend the Legislature for making difficult decisions, especially enacting welfare reform and across-the-board pay cuts. All this lays the foundation for job growth and continuing economic expansion.”

Investors.com says voters have few options to the tax increases comparing it to a hostage situation.

Schools would take the brunt of the pain. If the tax hike pushed by Gov. Brown and his public-sector union allies fails, K-12 funding from the state general fund would be cut by just under $5.4 billion. That represents about 10% lopped off school district budgets.

The state would allow them to cut up to 15 days of instruction from each of the coming two school years, and they may have no choice but to take that option. This would be an irretrievable loss of instruction time for students.

But if the tax increase passes, schools would get a $2.9 billion raise. Sounds like an offer the voters can’t refuse, doesn’t it?

“This is a game of chicken where you want to swap our educational system for tax increases, tuition for tax increases,” said Assemblyman Tim Donnelly, R-Twin Peaks. “This is an abject disaster.”

A dozen measures have qualified for the ballot, but the number is likely to drop to 11 next week, when state lawmakers are expected to again postpone an $11 billion water bond. The bond was originally set for a vote in 2010 and is likely to be delayed again until 2014, when legislators think the proposed borrowing might have a better chance with voters.

Democratic lawmakers are moving to give Brown’s tax proposal top billing on the ballot, pending a court challenge that Munger filed Thursday. His plan would raise the state sales tax and income tax for incomes over $250,000 a year, with the money going to the state budget, schools and public safety. Munger’s competing plan would raise income taxes for nearly all Californians, with most of the money going to public schools.


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- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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