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Gov. Jerry Brown today (May 14) put forward his plans to try to reduce the deficit, which has ballooned to $15.7 billion, up from $9.2 billion in January. The deficit is now a stunning 17% of the state budget. Brown proposed cuts to hospital and nursing home funding to lower MediCal costs; a 5% reduction in state workers' pay; a cut in in-home support services; cuts to mothers trying to get off welfare; reductions in prison system spending, and using assets that used to belong to local redevelopment agencies. Brown would also raise revenues by imposing a 1/4 cent sales tax increase to last four years, and a five-year increase in income taxes of those making $250,000 a year or more. Voters would have go approve the tax initiative. If they turn it down, Brown would cut $5.5 billion from K-12 schools and $250 million each from the state university and University of California systems. If voters approve the tax package, schools would receive a 16% funding increase.

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Comments

Visduh May 14, 2012 @ 12:55 p.m.

The only way out of this hole is to get the state's economy back on track and growing. Little of his proposals will do that. Tax rate increases will do just the opposite by driving even more tax payers out of the state, and may, in fact, reduce the overall tax take. The future of this state is not looking good at all.

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Don Bauder May 14, 2012 @ 1:18 p.m.

The increased sales tax will be hard to swallow. Besides, it is a regressive tax that will hurt middle class consumption, and hence tax revenues. Higher taxes on higher-income people will drive some out of the state, yes, but I do think those rates have to rise, both in California and nationally. The argument that higher income people create jobs is a phony; it's hard to quantify this, but I suspect that more high-income folks achieve their lofty status by cutting jobs, not creating them. Best, Don Bauder

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SurfPuppy619 May 14, 2012 @ 2:46 p.m.

Clowns tax hikes are DOA, take that to the bank.

I am taking bets on anyone who will wager that they will fail.

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Don Bauder May 14, 2012 @ 7:19 p.m.

You may be right, SurfPup. Then what? Best, Don Bauder

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SurfPuppy619 May 15, 2012 @ 8:27 p.m.

Then we set gov empoyment to market rates. No more reitrees at age 50 with multimillion dollar pensions.,

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Don Bauder May 15, 2012 @ 10:27 p.m.

The ridiculously excessive retirement benefits of city safety employees, in particular, should be sliced -- no question. I have been writing about that for years, and so have you. But too many people think it would never get past the Supreme Court. The idea that promised pensions are sacrosanct is deeply inculcated in the California mentality. Best, Don Bauder

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anniej May 16, 2012 @ 11:11 a.m.

when the folks in the south bay attempted to contact brown and others they turned a deaf ear - now he wants more money that will be funded to more schools run by allegedly corrupt boards - and i would trust him because???????????????????????????????

did he cause the problem NO - did he help the taxpaying citizens who sought help, another big NO folks.

do i sound disenchanted with politicians - ah, that would be a HELLO, of course.

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Don Bauder May 16, 2012 @ 12:14 p.m.

No matter what you say, California must restore its once-great education reputation. Best, Don Bauder

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