Brown to Unveil Spending Plan

Gov. Jerry Brown will release his spending plan Monday, and he has made one thing clear: nearly everyone will feel the pain when it comes to addressing California's $28 billion deficit.

Brown has warned interest groups, lawmakers, schools and citizens to prepare for spending cuts. Brown said the cuts are needed to close the massive shortfall through June 2012.

A few highlights:

• Brown has said he will seek to fundamentally restructure state government, shifting a host of responsibilities from the state to counties and cities.
• He wants to cut staff in state agencies and streamline government, starting with his own office, where he said Friday he was eliminating cabinet secretaries, closing offices and cutting communications staff.
• He will reportedly try to ask voters to extend temporary increases to income, sales and vehicle taxes to help fill the gap.

Just two yearsd ago, voters rejected an extension of the taxes as part of a package of ballot measures promoted by Gov. Arnold Schwarzenegger and lawmakers.

California faces a budget shortfall of $6 billion in the current fiscal year and more than $19 billion in the fiscal year that will begin July 1. Brown released figures showing the state will lose another $2.7 billion from federal estate tax changes, swelling the shortfall through June 2012 to $28.1 billion.
 

Copyright Associated Press

Leave Comments