SACRAMENTO -- Saying it's "better to take our
medicine now" to get California on better footing,
Gov. Jerry Brown proposed a budget today that
would cut deeply into services but also ask voters
to continue paying the current level of sales,
income and auto taxes for the next five years.
Brown, who took office a week ago, called for
$12.5 billion in cuts and $12 billion in revenues for
the next 18 months to lead the state out of a
$25.4 billion budget deficit. Because temporary
taxes, approved in 2009, are due to expire in July,
voters would have to approve the taxes in June.
It's a gamble that could leave schools and other
state services at risk if it fails.
Central to the budget proposal is a historic reform
that would shift significant responsibilities from
the state to local governments, in which all
revenues generated from the new taxes would
go directly to local governments.
"I'm hopeful (voters will) want to do this," Brown
said at a news conference unveiling his budget
proposal. "From what I've seen, there's a
reasonable prospect. This is the best I can figure
out. If it's not enough, then let's hear about it. But
I'd say we've made some drastic cuts. To do
more is going to impair the quality of our public
services."
Brown immediately won praise from Democratic
leaders, but Republicans condemned the tax
extension, promising to fight to keep them from
reaching the ballot.
"There's not any support for tax extensions"
among
Republicans, said Assembly member Jim Nielsen,
R-Redding, a member of the Assembly budget
committee. "I believe there's $25 billion that
people don't need to be taxed for. It's the worst
signal to the economy to send a signal that taxes
will be maintained."
Senate Leader Darrell Steinberg, D-Sacramento,
called the budget a "comprehensive framework"
that he has committed to enacting despite the
tough cuts Democrats will have to agree to.
"Overall, the governor's instinct is correct, to do
everything he can to put the fiscal crisis behind us
as soon as possible," Steinberg said. "He has
been fair in asking for sacrifices across the board.
I hate these cuts, but that's a different question of
whether it's the responsible thing to do and in the
best interests of the state."
Steinberg asked Republicans to approach the
budget with shared sacrifice in mind.
"Now is the time for both parties to get out of
their corners and come to the middle and work
together to get this mess behind us," he said.
"The $12 billion in cuts is an unprecedented level
of cuts. If existing taxes are not approved, then
double that, and no one will stand for that. Let's
get real to that. Times and our duty demand we
no longer allow this fiscal crisis to linger."
Brown said he's hopeful of getting a two-thirds
vote, which would require at least four
Republicans, but he and Steinberg both
suggested that if forced to, they would seek to
get it on the ballot with just Democratic support.
Brown spared only K-12 education.
"Schools have borne the brunt of spending
reductions in recent years, so this budget
maintains funding at the same level as the current
year," Brown said.
In total, Brown is asking for nearly $28 billion in
savings over the next 18 months -- to cover an
additional shortfall in case a proposed sale of state
buildings is blocked, and to keep a $1 billion in
reserve.
The revenue generated from the taxes will go
directly to local governments to finance the first
phase of Brown's plan to shift significant
responsibilities from state to local governments.
One such transfer of authority, in community
based corrections, could save tens of millions, he
said. More than 50,000 inmates are sent to prison
and stay less than 90 days.
"I feel they should be handled locally," he said.
"And we'll send the money down to them."
Mental health, foster care and substance abuse
programs are all programs better handled at the
local level, he said.
To get the tax measures on the ballot, the
Legislature must complete its work by March,
Brown said.
The poor once again take a big brunt of the
spending cuts. MediCal will take a $1.7 billion hit;
the welfare-to-work program, CalWORKS takes
another $1.5 billion hit. The Department of
Development Services, $750 million.
"These are not affluent people -- it's very difficult,
but that's where we are," Brown said.
The University of California, $500 million,
California State University, $500 million are other
areas with significant cutbacks.
A 10 percent reduction in take-home pay for state
employees not covered under collective
bargaining agreements saves $308 million. And
another $200 million is saved through
government-trimming operations such as
reorganizations and consolidations.
Brown also proposes to eliminate enterprise
zones and phase out redevelopment agencies,
which he said will return billions in property tax
revenues to schools, cities and counties.
Brown called his proposal "a tough budget for
tough times" that eliminates the structural deficit
and sets the state on course to stable budget
practices.
"This will be painful," he said. "It's gonna take
sacrifice from every sector in California."
To get it on the ballot alone will take a stepped up
sales pitch, Brown said.
"We'll discuss this with representatives of the
business community, we'll talk to Republicans,
different people," he said.
"I'll try to win over as much support as I can. I
will sometimes go into the lion's den and see if I
can't satisfy them with less red meat than they're
accustomed."
Source: http://www.mercurynews.com/top-stories/ci_17056188
medicine now" to get California on better footing,
Gov. Jerry Brown proposed a budget today that
would cut deeply into services but also ask voters
to continue paying the current level of sales,
income and auto taxes for the next five years.
Brown, who took office a week ago, called for
$12.5 billion in cuts and $12 billion in revenues for
the next 18 months to lead the state out of a
$25.4 billion budget deficit. Because temporary
taxes, approved in 2009, are due to expire in July,
voters would have to approve the taxes in June.
It's a gamble that could leave schools and other
state services at risk if it fails.
Central to the budget proposal is a historic reform
that would shift significant responsibilities from
the state to local governments, in which all
revenues generated from the new taxes would
go directly to local governments.
"I'm hopeful (voters will) want to do this," Brown
said at a news conference unveiling his budget
proposal. "From what I've seen, there's a
reasonable prospect. This is the best I can figure
out. If it's not enough, then let's hear about it. But
I'd say we've made some drastic cuts. To do
more is going to impair the quality of our public
services."
Brown immediately won praise from Democratic
leaders, but Republicans condemned the tax
extension, promising to fight to keep them from
reaching the ballot.
"There's not any support for tax extensions"
among
Republicans, said Assembly member Jim Nielsen,
R-Redding, a member of the Assembly budget
committee. "I believe there's $25 billion that
people don't need to be taxed for. It's the worst
signal to the economy to send a signal that taxes
will be maintained."
Senate Leader Darrell Steinberg, D-Sacramento,
called the budget a "comprehensive framework"
that he has committed to enacting despite the
tough cuts Democrats will have to agree to.
"Overall, the governor's instinct is correct, to do
everything he can to put the fiscal crisis behind us
as soon as possible," Steinberg said. "He has
been fair in asking for sacrifices across the board.
I hate these cuts, but that's a different question of
whether it's the responsible thing to do and in the
best interests of the state."
Steinberg asked Republicans to approach the
budget with shared sacrifice in mind.
"Now is the time for both parties to get out of
their corners and come to the middle and work
together to get this mess behind us," he said.
"The $12 billion in cuts is an unprecedented level
of cuts. If existing taxes are not approved, then
double that, and no one will stand for that. Let's
get real to that. Times and our duty demand we
no longer allow this fiscal crisis to linger."
Brown said he's hopeful of getting a two-thirds
vote, which would require at least four
Republicans, but he and Steinberg both
suggested that if forced to, they would seek to
get it on the ballot with just Democratic support.
Brown spared only K-12 education.
"Schools have borne the brunt of spending
reductions in recent years, so this budget
maintains funding at the same level as the current
year," Brown said.
In total, Brown is asking for nearly $28 billion in
savings over the next 18 months -- to cover an
additional shortfall in case a proposed sale of state
buildings is blocked, and to keep a $1 billion in
reserve.
The revenue generated from the taxes will go
directly to local governments to finance the first
phase of Brown's plan to shift significant
responsibilities from state to local governments.
One such transfer of authority, in community
based corrections, could save tens of millions, he
said. More than 50,000 inmates are sent to prison
and stay less than 90 days.
"I feel they should be handled locally," he said.
"And we'll send the money down to them."
Mental health, foster care and substance abuse
programs are all programs better handled at the
local level, he said.
To get the tax measures on the ballot, the
Legislature must complete its work by March,
Brown said.
The poor once again take a big brunt of the
spending cuts. MediCal will take a $1.7 billion hit;
the welfare-to-work program, CalWORKS takes
another $1.5 billion hit. The Department of
Development Services, $750 million.
"These are not affluent people -- it's very difficult,
but that's where we are," Brown said.
The University of California, $500 million,
California State University, $500 million are other
areas with significant cutbacks.
A 10 percent reduction in take-home pay for state
employees not covered under collective
bargaining agreements saves $308 million. And
another $200 million is saved through
government-trimming operations such as
reorganizations and consolidations.
Brown also proposes to eliminate enterprise
zones and phase out redevelopment agencies,
which he said will return billions in property tax
revenues to schools, cities and counties.
Brown called his proposal "a tough budget for
tough times" that eliminates the structural deficit
and sets the state on course to stable budget
practices.
"This will be painful," he said. "It's gonna take
sacrifice from every sector in California."
To get it on the ballot alone will take a stepped up
sales pitch, Brown said.
"We'll discuss this with representatives of the
business community, we'll talk to Republicans,
different people," he said.
"I'll try to win over as much support as I can. I
will sometimes go into the lion's den and see if I
can't satisfy them with less red meat than they're
accustomed."
Source: http://www.mercurynews.com/top-stories/ci_17056188
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