California Governor Brown proposes $8.3 Billion in Budget Cuts and wants to Increase Income and Sales Tax

Pen and form - BSN

(Best Syndication News) - The budget deficit in California has reached $15.7 billion, which has prompted Governor Edmund G. Brown Jr. to release a budget revision that would cut $8.3 billion in spending.

Brown said that he wants to protect spending for education and public safety. Education spending would increase from $29.3 billion in last year's budget to $34.0 billion by the end of 2013. He is asking for a 16 percent increase in K-12 education spending, but voters must approve of this increase.

Brown is going to have voters decide on the November ballot. To close the budget gap, Brown in asking to increase state income tax and sales tax. The initiative would temporarily increase income taxes for high-income earners. If passed those high-income earners would see up to a 3 percent increase in state taxes for the next seven years. Additionally, the measure would increase state sales tax by one quarter of one percent for the next four years.

In the May Revision budget proposal, the budget cuts would be more severe than the ones in January. The cuts in May propose $4.1 billion in cuts to state employee compensation, welfare, health care, higher education, courts, and other critical government programs. This would bring the total cuts to $8.3 billion.

Additionally, if the November initiative does not pass, then the Governor said they would cut an additional $6 billion starting on January 1, 2013.

On the positive note, Governor Brown said that they had a $26.6 billion deficit when he began his term in office. Progress is being made with the budget. Brown has cut $16 billion from the budget and has taken the state's credit outlook from a negative rating to a positive one.

By: Dave Reddy

ref: 1



Post to Facebook

Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
Use of this site means that you agree to our TERMS OF SERVICE

Advertise On This Site
Copyright © 2006-2015 By Best Syndication All Rights Reserved