More Cuts for California State Budget
Photo: Video by kmir6.com
California's budget crisis continues, with Governor Jerry Brown announcing the need for more cuts and for voters to pass his tax initiative in November.
Governor Brown says 8.3 billion dollars in cuts is needed to help close a nearly 16 billion dollar deficit.
He says this budget shows that the nation's recovery is going slower than expected.
Governor Brown's budget hinges on his tax initiative passing in November.
"I've bumped up the revenue, on condition that people say yes, if people say no, then we will have those trigger cuts, and it will be felt at UC, Cal State campuses, and it will be felt in every school district in the state."
Meanwhile, Republicans say their budget plan protects what's important without adding taxes.
"Our budget pathway actually protects education and makes a difference for students at all levels in California, and all we see is more cuts to schools in this budget, and funding that actually supports health and social welfare programs," said Republican leader, Assemblywoman Connie Conway.
But Brown says the 4.1 billion in additional cuts come from welfare, health care, higher education, courts and a five percent pay cut to state workers.
"Medi-Cal, and nursing homes, and hospitals, Calworks, childcare, employees, five percent cutback, these are all real, but the fact is that California has been living beyond its means," said Governor Brown.
Assemblywoman Connie Conway says Governor Brown is forcing people to feel they have to vote for increased taxes.
"The whole push is taxes, taxes, taxes. So I believe they will do whatever it takes to get those tax increases, do we have a deficit, yes we do, are taxes the answer, we don't believe so," said Assemblywoman Conway.
Brown's tax initiative raises the state sales tax by a quarter percent, and temporarily hikes the income taxes of high-earners by two or three percent.
"The share of most Californians is shrinking, as the money is redistributed upward, because of a variety of factors, so I thought the tax on people making 500-thousand or a million is fair," said Governor Brown.
If the tax initiative doesn't pass, there will another 6 billion in cuts January 1st.
California voters will have the final say on higher taxes come November.
By constitutional requirment, a budget bill must be passed by the state legislature by June 15th.