Monday, January 31, 2011

The Lesser-Known State of the State Address

The state of California faces a $25.4 billion budget deficit in the next couple fiscal years. Governor Jerry Brown has proposed a half-and-half budget cut, tax increase plan to solve the problem. Brown has proposed a $12.5 billion cut from "health care, higher education, and other areas if voters will pass an extension on income and sales taxes passed in 2009, ending in 2012. This would allow for $12 billion more in revenue, essentially reducing the deficit to only 3.5% of its original state.

Although the plan seems good in theory, the tax extension would have to be approved. After passing Prop 26, the state needs a two-thirds vote from the people to be able to implement the tax extension. While no one likes taxes, if the tax extension is not passed, Brown warns that cuts would most likely be in education, health, and prisons.


I didn't watch the actual address, not have I been following the issue very closely, but it seems that state Republicans and Democrats aren't too vehemently opposed to the combination of cuts and tax increases, with both parties in relative agreement with the governor's points. The Republican response asked for the governor to cut spending and think of long-term reform.

What do you think California should do? Do you think the voters will pass the tax extension if it gets onto the June ballot?

1 comment:

Charlie Pai said...

It certainly does seem like a good idea in theory. And this is the very thing most people are looking for: a plan that combines both Democratic and Republican ideas. The only problem is the tax. A 2/3 majority is quite high, and seeing that California voters passed the proposition that made fees require a 2/3 vote as well (the hidden taxes one), it seems very likely that voters would vote it down. Remember, voters care more about their own wallet.

I personally feel that California really needs to end these strange 2/3 majority laws on taxes. Taxes aren't all bad, just annoying. And when the government is in trouble fiscally, the people are in trouble as well.