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Gov. Jerry Brown today (May 14) put forward his plans to try to reduce the deficit, which has ballooned to $15.7 billion, up from $9.2 billion in January. The deficit is now a stunning 17% of the state budget. Brown proposed cuts to hospital and nursing home funding to lower MediCal costs; a 5% reduction in state workers' pay; a cut in in-home support services; cuts to mothers trying to get off welfare; reductions in prison system spending, and using assets that used to belong to local redevelopment agencies. Brown would also raise revenues by imposing a 1/4 cent sales tax increase to last four years, and a five-year increase in income taxes of those making $250,000 a year or more. Voters would have go approve the tax initiative. If they turn it down, Brown would cut $5.5 billion from K-12 schools and $250 million each from the state university and University of California systems. If voters approve the tax package, schools would receive a 16% funding increase.
Gov. Jerry Brown today (May 14) put forward his plans to try to reduce the deficit, which has ballooned to $15.7 billion, up from $9.2 billion in January. The deficit is now a stunning 17% of the state budget. Brown proposed cuts to hospital and nursing home funding to lower MediCal costs; a 5% reduction in state workers' pay; a cut in in-home support services; cuts to mothers trying to get off welfare; reductions in prison system spending, and using assets that used to belong to local redevelopment agencies. Brown would also raise revenues by imposing a 1/4 cent sales tax increase to last four years, and a five-year increase in income taxes of those making $250,000 a year or more. Voters would have go approve the tax initiative. If they turn it down, Brown would cut $5.5 billion from K-12 schools and $250 million each from the state university and University of California systems. If voters approve the tax package, schools would receive a 16% funding increase.