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	Brown warns of school cuts if taxes rejected Sat Jan 07, 2012 10:00 am

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Post subject: Brown warns of school cuts if taxes rejected

Brown warns of school cuts if taxes rejected

SACRAMENTO, Calif. (KGO) --
Gov. Brown was forced to reveal his budget Thursday after it was mistakenly posted online. It calls for deep cuts in social programs to fix the state's $9.2 billion deficit.

Gov. Jerry Brown unveiled his state spending plan that relies on billions in budget cuts and higher taxes. The governor was forced to unveil his budget five days early when it was mistakenly posted online and the Los Angeles Times picked it up.

It projects a deficit of $9.2 billion, calls for $4.2 billion in cuts, and assumes voters will pass a sales tax increase and higher income taxes on the wealthy. And if they don't, it triggers cuts to education of $4.8 billion -- the equivalent of three weeks of school.

Related Content

Story: Budget deficit tops Legislature's 2012 priority list

Story: Gov. Brown to announce revenue forecast You could call it the big "oops!" Brown was planning to unveil the plan next week, but on Thursday had to defend his spending plan which contains cuts, new taxes, and accounting maneuvers. All of which solves a smaller $9.2 billion deficit.

Brown's budget proposal is a mixed bag. Using charts that show how much of the nagging deficit has been eliminated, he says the state is on the right track.

"The good news is California is recovering. The fiscal health of the state is improving and we now have a plan," said Brown.

However, more work needs to be done and he says deeper budget cuts are necessary. Welfare will be hit the hardest, with nearly $1.5 billion less. That includes cutting CalWorks from four years to two years if recipients don't work and slashing cash aid for children, saving the state $946 million.

Health coverage for the poor is slashed $842 million, and reducing childcare subsidies by 71,000 slots for poor parents will save $450 million.

"When you say, 'We don't have enough money,' you've got to cut some of that good, and that's what we're doing. We've got to bite the bullet," said Brown.

"We are not going to jump to that. Cutting should be the last resort," said St. Sen. Darrell Steinberg, D-Senate President.

The governor also wants to avoid even bigger cuts by raising taxes temporarily for five years, $7 billion a year by asking voters to approve a 0.5 percent hike on the sales tax for five years and a 1 percent income tax surcharge on individuals making $250,000 a year, and families making $500,00 -- even more for millionaires.

Though Republican votes are not needed to put the tax measure on the ballot, they think voters will reject it given their record in recent years.

"They've turned down all those measures resoundingly and so are they going to be in a mood again when they see money for high speed rail in there?" said State Senator Doug LaMalfa, R-Senate Budget Committee.

Advocates for the poor say the governor's plan should actually raise taxes more so that no more cuts are necessary.

"We need enough revenue in this budget so we don't have to cut poor kids' welfare in order to balance the state budget," said Mike Herald from the Western Center on Law and Poverty.

If the governor's tax plan doesn't get approved by voters in November, another $5 billion will be cut from the budget with schools taking the brunt. That's equivalent to shortening the school year by three weeks.

http://abclocal.go.com/kgo/story?section=news/state&id=8492080&rss=rss-kgo-article-8492080

	Brown warns of school cuts if taxes rejected Sat Jan 07, 2012 10:00 am

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