Gov. Brown Renews Fight To Keep Tax Increases Alive

Gov. Jerry Brown has released a revised state budget that calls for a 5 percent increase in spending over the plan he released in January but says a renewal of expiring tax increases is still needed to close California’s remaining budget deficit.

The governor announced his updated spending plan on Monday for the fiscal year that begins July 1, saying the deficit has been cut to $9.6 billion, about one-third of its original size. He acknowledged that revenue from income, sales and corporate taxes is rising, but says it’s not enough.

He says closing the shortfall through cuts alone will hit public education especially hard.

Already, school districts throughout the Coachella Valley have handed out layoff notices to teachers and support personnel in anticipation of state funding being dramatically reduced.

The governor is proposing spending $88.8 billion from the general fund, the state’s main checkbook. Lawmakers have until June 15 to approve a budget.

Senate Republican Leader Bob Dutton of Rancho Cucamonga and Senate Budget Vice Chair Bob Huff (R-Diamond Bar) issued the following statement in response to the governor’s budget revisions:

“Senate Republicans believe Governor Brown is moving in the right direction by making education and law enforcement funding a top priority. We also applaud the governor for embracing Republican proposals of paying down state debt and providing some job-creation incentives. But the May Revise goes too far on taxes and not far enough on reforms.

“Rather than curbing government spending, the governor’s revised budget still sets the state on a course of excessive spending growth in the future – spending that relies on tax increases. With $6.6 billion in new revenues,

Republicans are right – we don’t need, and it’s ridiculous to ask voters for, five years of new taxes. Clearly the California economy is trying to recover, which makes it critical that the state budget include reforms that Senate Republicans have been seeking from day one – a hard spending cap, pension reform and business-regulation relief. The Senate Republicans’ long-terms solutions provide the stability small businesses need to grow and create jobs.”