|look at this moron, he raised taxes so more productive people left the state and he got less tax revenues. So what is the answer for this liberal regarding this revenue problem ? yeah raise taxes again. you libs just don't get it. we aren't bricks.|
California Gov. Jerry Brown said the state's projected budget deficit widened to $16 billion from about $9 billion, and he warned that the state will need deeper cuts to services such as education if voters don't pass a tax-increase measure he is championing.
The Democratic governor on Monday is set to release his revised 2012-13 budget to lawmakers in the state's Democratic-controlled Legislature.
While he didn't outline details of his new budget plan in a brief YouTube address, Mr. Brown said the state would have to cut funding to schools and public-safety agencies already hit with steep budget cuts in recent years unless voters pass his ballot proposal in November.
That measure would temporarily raise sales taxes, to 7.5% from 7.25% for four years, and it would boost income taxes by as much as three percentage points for seven years on individuals making more than $250,000 a year or households making more than $500,000.
"What I am proposing is not a panacea, but it goes a long way towards cleaning up the state budget mess," Mr. Brown said in his video statement.
H.D. Palmer, spokesman for the governor's Department of Finance, said Mr. Brown still planned to make deeper cuts to other services even if the measure is approved.
Some Democratic lawmakers quickly showed support for working with the governor.
"It pains us to have to bridge such a sizable gap, but we will get the job done with an eye toward doing the least amount of damage to our economy and to those who are struggling the most," Darrell Steinberg, the state Senate president pro tem, said in a statement.
Most Republican lawmakers oppose any new tax increases, saying they would slow California's economic recovery. But they have been largely sidelined in this year's budget process after voters in 2010 passed a measure allowing budgets to be passed by a simple majority of the Legislature rather than the former requirement of two-thirds.
David Valadao, a Republican assemblyman from Hanford, in the inland Central Valley, said the new deficit projections don't change his opposition to new taxes. "We've done nothing to create more jobs such as easing regulations on business," said Mr. Valadao, who like many Republicans is pushing for more breaks to businesses to stimulate economic growth.
It remains unclear whether the governor's tax plan will pass in the fall, although public-opinion polls in recent months have shown wide support.
The new budget uncertainty arose when revenue fell below Mr. Brown's projections when he first submitted a proposed spending plan in January, and when spending cuts came in lower than expected because of federal delays and court rulings, Mr. Palmer said. The state controller's office said personal-income-tax revenue—a large part of California's income stream—came in $2 billion below estimates during April.
California's recovery has been uneven. High unemployment persists in many inland areas, while coastal areas have recovered more strongly on resurgence in technology and other industries.
State officials have held out hope that initial public offerings of Facebook Inc. and other tech companies could generate new tax revenue in time to reduce the projected deficit for the fiscal year that begins July 1. Facebook alone could provide $1.5 billion in additional tax revenue by June 2013, Mr. Palmer said.
A state deadline for passing a balanced budget is June 15.