Brown Warns About Deficit

Sacramento, CA — Gov. Jerry Brown claims there could be additional trigger cuts if voters reject his tax initiative next fall.

Brown’s spokesperson, Gil Duran, said yesterday that the governor will offer California voters a stark choice between higher taxes on themselves and deeper cuts to schools, universities and public safety. The first-round of trigger cuts is expected to go into effect early next year because the current year revenues are coming in less than expected.

Duran released a quote from the governor that said, “If taxes don’t pass, there will be a hole that will trigger further cuts.”

However, it is not all negative news. California beat its November revenue projections by $497.7 million, or 8.9 percent, state Controller John Chiang reported Thursday.

California still faces a $13 billion shortfall projected over the next 18 months. Brown wants to increase taxes on workers that make over $500,000 and increase the state sales tax by half a cent, to 7.75%. The proposal has opposition from many Republicans, arguing that the Governor should be looking at passing business incentives, rather than tax increases.