Jerry Brown Announces Budget Revision; Revenue Surge Slashes Deficit But Guv Still Wants Tax Extensions
- A surge in tax revenue has netted the state an unexpected $6.6 billion.
- Despite the surprise existence of those extra funds, Brown still wants to extend some taxes. From the Sacramento Bee:
Brown’s January budget called for an extension of higher sales and vehicle tax rates, as well as a retroactive extension of higher income taxes, all for five years. The governor is still calling for the 1 percent sales tax extension and the 0.5 percent vehicle license fee extension after June, when the rates are slated to decrease.
But he is requesting that the 0.25 income tax surcharge be delayed until 2012. It would last until 2015.
Brown said the taxes are needed to prevent large deficits in the future. From the San Jose Mercury News:
Without the renewal of the higher taxes, Brown said California faces a budget deficit of about $20 billion in two years.
He would not say whether he had an alternate plan if Republican lawmakers continue to block his call for tax renewals.
“I’m not going to give the Republicans a roadmap to ruin, I’m giving them a roadmap to success,” he said. “I want to see balanced, honest budgeting, and that’s what I’m proposing.”
- The new budget adds $3 billion to what was originally proposed for education.
Listen to Brown’s press conference here:
The revised budget is available at the Dept of Finance web site.
For a blow by blow of Brown’s press conference, check out the tweets of KQED’s John Myers:
Category: State Budget