Jerry Brown

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Gov’s Prop. 30 Tax Hike: More For Schools, Criminal Justice…or More Money Misspent?

By Erika Kelly

Gov. Jerry Brown speaks at L.A. City Hall on the state budget earlier this year.  (Kevork Djansezian: Getty Images)

Gov. Jerry Brown speaks at L.A. City Hall on the state budget earlier this year. (Kevork Djansezian: Getty Images)

Gov. Jerry Brown has been blazing the campaign trail for Proposition 30 for several weeks now. It’s his big play to bring in new revenue, and he’s lined up a lot of support to pay for campaign ads that begin Wednesday. People and organizations have ponied up more than $41 million to back Prop. 30. Brown warns that without the added revenue, California schools would face something like financial Armageddon. That’s a message he served up at an August visit to San Francisco’s James Lick Middle School.

“If people say ‘no, we don’t want to tax the most rewarded and blessed among us, we want to close schools,’” he told the crowd, “okay, I’ll manage as best as we can. But I will tell you, and I’m telling you the truth, everything I’ve seen in my lifetime tells me that schools need more money.”

The “blessed people” Brown refers to are California’s highest earners. Under Prop. 30, they would see their income taxes go up for seven years. But it’s not just the wealthy who would be asked to chip in. Everyone who makes a purchase in California would have to pay an additional quarter-cent sales tax for four years. This year’s state’s budget assumes Prop. 30 will pass and billions of dollars of new revenue will flow into state coffers. But H.D. Palmer, spokesman for the State Department of Finance, says if voters reject the measure, significant cuts are coming — and fast. Continue reading

State Worker Pay To Come Under Gov. Brown’s Budget Ax

Flickr/Clinton Steeds

As Gov. Jerry Brown prepares to release the “May revise” of his proposed budget for the coming fiscal year, sources in his administration are letting it be known that the governor will be asking public employees to take a hit.

Tax revenues are $3.5 billion less than expected, further widening the budget gap, and Brown needs to find the money somewhere. Here’s more from Sacramento Bee reporter Jon Ortiz:

Officials representing Gov. Jerry Brown met with state employee union leaders last week and delivered the news: A budget revision he’ll release Monday includes a new proposal to cut payroll costs in the upcoming fiscal year.

The decision to take a bite out of state workers’ pay comes amid a deepening California budget deficit that Brown pegged in January at $9.2 billion through 2012-13 but now is thought to be considerably more.

The sources, who declined to talk on the record because the administration asked all involved to keep the budget discussions secret, said Brown’s representatives didn’t outline specific cuts. They said the governor wants to cut payroll costs by at least 5 percent, and asked union leaders to come up with ways to make the reductions.

Brown has the authority to lay off workers, but any other reductions – a pay cut or furloughs, for example – require bargaining or legislation.

Read more here: http://www.sacbee.com/2012/05/10/4479637/jerry-brown-tells-unions-state.html#storylink=cpy

 

For state employees, the news is a reminder of the furloughs and layoffs of the Schwarzenegger years.

For Republicans, it suggests a ploy to win favor for the governor’s tax increase measure moving toward the November ballot.

The details will be revealed Monday when Brown unveils his budget revision plan.