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Olsen: Tax Increases Unnecessary

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Sacramento, CA — Republican Assemblywoman Kristin Olsen has both positive and negative things to say about Governor Jerry Brown’s revised budget proposal.

“While I’m pleased that he has dropped the initial year of the income tax increase, I think it is still unfortunate and unnecessary that he relies on five years of tax increases,” says Olsen.

Brown is renewing his effort to place a measure on the ballot to increase sales, vehicle and income taxes. However, Brown is now seeking that the income tax increase not be implemented until 2012, because of unexpected revenue thanks to an uptick in the economy. California faces an estimated $9.8 billion deficit.

Rather than extend tax increases, Olsen would like to see the revenue made up by making cuts to health and welfare programs, allow school districts to contract out for non-instructional services (yard maintenance, dining services, etc.), and ask state employees to take a 10 percent pay reduction.

The Governor is proposing to eliminate 43 boards and commissions, and Olsen says she is pleased to see that the Governor is “committed to restructuring.” However, she opposes Brown’s call to eliminate the state’s redevelopment agencies. It would save approximately $1.7 billion. “I still think that there are legal challenges associated with it,” says Olsen. “The state needs to balance the budget on its own back, and not on the backs of local communities.” Redevelopment dollars go to cities and counties.