January 10, 2011

The Wait Is Over

by Rebecca Burgoyne, 
CFC Research Analyst

The Sacramento Capitol – and all of California – has been waiting to see how newly elected Gov. Jerry Brown would attempt to solve California’s escalating budget difficulty. As of 11 a.m. Monday morning the wait is over. As expected, the governor released a jarring preliminary budget proposal of stringent cuts and proposed tax increases. While the optimistic among us hoped his political experience would enable him to navigate the tensions between the political parties, it appears Brown’s cuts have pleased no one, as neither the Democrats nor the Republicans find much to embrace in his plan.

What we have is a mixture of cuts seemingly “designed to hit services that permeate every part of Californians' lives.” Brown is hoping legislators will pass the cuts as a good-faith effort to motivate voters to continue certain taxes that are due to expire this July. The package includes a ballot measure to extend the taxes for five years, a “vast and historic” restructuring of government, pay cuts for state employees and a repeal of certain tax benefits for corporations. 

Brown hopes the Legislature will complete work on the budget in 60 days – with enough time to qualify for a special election this June. Voters last fall gave the Legislature the gift of being able to pass a budget with a simple majority, but to raise taxes, they need the buy-in not only from all the Democrats but also two Republicans in each house. This may prove difficult, as all but two of the California Republicans have signed a no-tax pledge sponsored by a national tax organization. That organization, Americans for Tax Reform, said recently “it would consider putting the tax issue on the ballot a violation of the pledge.”

Sixty days…two months…and any political posturing and bickering is sure to enrage taxpayers who have already said no to increased taxes a year ago and last fall. Visit CFC’s poll to express your opinion of continuing additional taxes.

To read more about Gov. Brown’s budget proposal, see http://www.ebudget.ca.gov/ or Brown’s press release