California’s budget gap narrowed according to information supplied by Governor Jerry Brown. The state still plans to cut some costs and increase taxes in the year ahead
A year ago, the state faced an immediate $26.6 billion shortfall and future estimated annual budget gaps of $20 billion. This year, the state faces a $9.2 billion budget problem and future annual budget gaps of $5 billion or less.
Under his proposal
The Budget proposes a total of $10.3 billion in cuts and revenues to balance and to rebuild a $1.1 billion reserve.
Taxes will rise for the well to do as part of Brown’s plan
The Budget assumes the passage of the Governor・s proposed initiative at the November election. This measure temporarily increases the personal income tax on the state・s wealthiest taxpayers and temporarily increases the sales tax by one-half percent. The measure guarantees these new revenues to schools and constitutionally protects the 2011 Realignment funds for local public safety. It will generate an estimated $6.9 billion through 2012-13.