California’s Deficit Reduced
Sacramento, CA — Due to an unexpected increase in state revenues, Governor Jerry Brown is now estimating that California faces a $9.6 billion deficit for the next fiscal year.
Governor Brown was Tuesday’s KVML “Newsmaker of the Day”.
Because of an uptick in the economy, California is expected to receive $6.6 billion more in tax revenue over the next 14 months than initially anticipated. The Governor’s May revised budget proposal was released this morning.
Brown’s new budget calls for California schools to receive a combined $3 billion more than last fiscal year. To cut costs, he is calling for the elimination of 43 state boards and commissions. He is also calling for the merger of the Healthy Families health insurance program with Medi-Cal.
Brown is still calling for the elimination of funding for state redevelopment agencies, a proposal criticized by many Republicans when he tried it earlier this year. The move would save around $1.7 billion annually.
The Governor stated today that he would still like a special election asking voters to extend temporary tax increases set to expire at the end of next month. He is hoping that the election will be held in the fall. In order for that to happen, he must still secure the votes of four Republican lawmakers. This morning Brown stated that negotiations with a handful of Republicans have been positive over the past 24 hours.
Brown’s ballot measure would increase sales, vehicle and income taxes. However, Brown is now seeking that the income tax increase not be implemented until 2012, because of the unexpected revenue.
The “Newsmaker of the Day” is heard each weekday morning on AM 1450 KVML at 6:47, 7:47 and 8:47am.
