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Subscribe to RSSCalifornia Gov.-elect Jerry Brown, who in 25 days will inherit a state in a decade-long economic crisis, is hinting that he will ask voters to make the choice of approving higher taxes or living with big cuts in government services.
In a meeting with Republican senators this week, Brown said he wants to "rip the Band-Aid off next year," referring to the state's budget woes, and hinted that a special election this summer was part of the plan, the Los Angeles Times reported.
California has furloughed state workers and cut some services, but is still in a deep economic well.
"He intimated strongly that he wanted to go to the ballot but did not say so explicitly," Republican Senate minority leader Bob Dutton told the Times.
The new tax package has not been made public and is yet undefined. Still, the approach sheds light on how Brown plans to attack an issue that has baffled state and local governments around the country – how to deal with huge budget deficits along with declining revenues in the midst of a nationwide economic downturn.
Brown warned on Wednesday that state's $25.4 billion deficit might grow to more than $28.1 billion because of reduction in estate tax revenue, which Congress is debating in a tax compromise brokered by Republicans and President Obama.
The warning came during unusual forum led by Brown that brought together hundreds of lawmakers and local officials to discuss the state's crisis.
By law, Brown must propose a balanced budget by Jan. 10. He vowed during his campaign to not raise taxes without voter approval.
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This stupid bastard will tank the state, for sure. Anybody with a job should look to the other 48 for someplace to go or you will be taxed into oblivion to feed the government waste and corruption as well as our abysmal welfare situation.
This is an idea long overdue. It's about time and it did come from a Democrat! We need to leave the Legislature behind.
He's giving taxpayers the choice - taxation OR cut spending. If you would pull your partisan, fairy-tea-dust snorting head out long enough to even read the first two sentences, I wouldn't be stuck here wasting bandwidth explaining it to you. Gesh...
Dear God, I am sorry us humans have reduced your glorious system of natural selection. I guess people like mbz-698879 are our punishment...
This state is the most taxed in the entire country. Throw in the insanity of the greenhouse gas bill taking affect in 2011 and this moonbeam wants to ask the citizens for more taxes? It took Gov. Ahunold two years for the majority of Californians to turn on him and despise him. Looks like Brownie wants everyone here to hate him within his first month.
That is great. We built our hopes on being able to steal what other people earned. Just lovely. Sounds like our Democratic leaders.
Our current tax system in California is terrible and we will never get out of debt and for those hypocritical racists, it is not because of illegals. That is an issue but those who work in this state pay fair taxes like everyone else. Stop watching and listening to bigots. This state was great until Pete Wilson and Duke and Arnold.
what a great idea. instead of having congressional or state legislative clowns who are under the influence of lobbyists, ideology and weird substances decide what we want lets let the voters decide. voters would have a direct say in whether taxes get raised to pay for schools and roads and police and so on and my bet is there is a much bigger sense of value in collective action to make the world a better place for current and future inhabitants among the voters than among the elected reps who kow-tow to various corporate and wing nut masters who have pretty much bought a lot of the reps souls and butts long ago. go brown go!
singe,you forgot to single out the biggest influence, their union leader masters. After you vote will everyone sit around and sing Kumbaya, until someone realizes that you just did the job your elected officials were supposed to do? You just made the hard decision that they are incapable of doing. And if so why bother having elected officials if they cannot do their job?
singe, you forget that if the voters decide to raise taxes, employers can choose to leave the state...as well as wealthy Californians.
dave , Nevada can go back to running the ad they ran trying to entice companies that were leaving California to go to Nevada. Of course, Virginia, Texas and Arizonia picked up some of those businesses as well.
singe - i agree let the people speak -, and as for companies leaving the state, wake they have; they have gone to states/countries where they have workers for 8/hr or less, or yes and they are selling goods and services to california residents (i.e. comcast, att, texas ti) as Americans look for made in the U.S. WE Californians look for Califonia made/ operated i.e. Ghirardelli choclate versus Hershey-they closed a plant in Oakdale and move >1000 plant, dairy farmer, driver, and other local business to MEXICO - hence 50 candy bar and you dont know whats in it!!!!)
The problem in CA is its citizens...they figured out that they could vote themselves bennies without paying for them...for the partisans here this is BOTH a republican and Democrat problem...some of that 28 billion deficit goes to fund republicans too.
This is the same clown that couldnt stop prop 13 back in 1978 and started the whole nosedive in the first place. It killed the local tax base and pushed the demand to the state level; which is where the 20billion deficit came from. "Take it to the voters" doesnt work very well in cali.
Oh, go ahead, blame Prop 13, which saved the homes of thousands of Californians and continues today to keep property taxes within reason. Why is it that a 30 plus year old law always gets dragged out when the economy tanks or government leaders make bad decisions? California has a top down problem, where each agency should examine their expenditures and cut the fraud and waste. As a former CA government employee, I know of one incident that cost the tax payers over $2 million and was never implemented even though management had been told before it was started that it would never work. If each agency could cut that amount we would be on the road to recovery without impacting services. Capping retirement to a maximum amount would also save millions. I'm hoping that Jerry Brown has the ability to at least get us moving towards fiscal responsibility.
OMG. you are seriously asserting the present deficit is a result of prop 13? that is hilarious. try an inabilty to recognize that you can't spend what you don't have. state's deficit is a result of programs with no basis of funding.
Prop 13 was an excellent idea, but it went too far by including commercial properties, and by not carving out an exception for those who re-finance to cash out their unearned equity. I think the assessment should be pegged to the purchase price, OR the encumbered equity value, whichever is higher. That way folks could keep their homes, but only if they don't try to live on the appreciation.
i think it's great! brown is taking it to the people to make a decision. so for all of you pseudo freedom, gays, guns, and god. this is real freedom. no politicians to blame, just yourselves if you make the wrong decision.
i love california!
It is a good suggestion. And, it also shows the democracy. However, any election is also cost money.
But, if there is no better way to solve the financial problems, it may be a good way to solve problems for "Golden State".
how strange that some of the right wing pilgrims here have a problem with the people deciding how much taxes they will pay! why it's almost as if the koch bros. collected all those little copies of the u.s. constitution they handed out in the run up to the 2010 elections. because the real deal is if the majority of voters decided things directly on issues like taxes and social welfare programs with the captains of industry and their handmaidens sitting on the sidelines this would be a much more left wing humanistic country then they could stomach...go jerry go!
singe, don't forget, yesterday and today we found that the real driving force behind Harry Reid are the casinos and the Chinese. As for a vote in California this is the same group that voted a major restriction on the method to raisetaxes, but still wanted all of the social perks, just without paying for them.
This might be good time to move to the Golden State. Currently, California is at a low point, and "buy low and sell high" might apply. I live in Texas, currently selling high. If I could swing it, I might sell my place here and head for the west coast.
For Rick, above . . . yes, the problem with California is its citizens. The problem with the planet earth is its inhabitants.
They'll probably vote themselves another $500 Million school and get the clowns in DC to foot the bill.
Business as usual in California.
Like, for sure...tee hee.
Guitar1, I'd get out of Texas anyway I could before Perry secedes and merges with Kazakhstan , evolution becomes illegal and Jefferson Davis's picture is put on milk bottles.
singe. your enlightenment is overwhelming. How big is the debt in California? 28 billion? And they estimate that soon the state will have to go to the Fed's to bail them out. Better hurry, because when the Republicans are seated in Jan. the Federal credit card is going to be cut up. Then California will have to get itself out of a mess.
here is an idea, quit supporting criminals... instead, deport them imediately! Problem solved, less wasted expense, more jobs for legal (read 'tax paying') citizens and holders of valid green cars and work visas... result: more taxes collected and less dollars spent... easy... the minor cost of deporting criminals would be absorbed by the savings reaped by not paying for welfare programs and health care for those same CRIMINALS!
Just like a good Democrat put the power in the people s hands .
Last time they did that the voters approved a ban on gay marriage, a ban that should have ended years ago.
It's only right that Jerry finish what he started and completes the destruction of CaliPornia.
gary, you miss the point the voters can choose to vote to pay more taxes for services which i bet they will. it is not that there are not a lot of folks in california who can afford to pay more taxes and if they want good schools and so forth they will so choose. it is only since that other idiot reagan was governor and then god help us president that the voters got the impression that their government (which in a democracy is "the people") was their enemy and that the big father in the sky would provide all the things we take for granted in a modern society like road and schools and an army and so forth. fact is taxes are the collective way to have a society and without them we would be eating road kill that was created by ox carts and chewing deer skins to make hides to make wing tips to work at jobs in graineries....so lets directly vote on what we want to pay taxes for and i bet you get a national health care plan in a few hours....
Singe,
After having lived here in California for the past thirty years, I have some direct knowledge of the people, and the problems. We have overextended our social services, without making the tax base conform to the level of service provided. It's pretty simple, if you pay for what you want, you won't have the annual deficit problems that we've had for the last decade. Think of it as your own personal budget, if you or your spouse get a raise, you probably raise your standard of living, and your level of expenditures. If you or your spouse stops working, has your hours cut, etc, you probably reduce your standard of living, and, consequently, your expenditures. California never quite understood that the cash flow could dwindle to a trickle, the good times were always just around the corner. Unfortunately, our innate belief that only good things would happen here in the "Golden State" has sadly, been shattered.
It's not so much a question of what we want any longer, it's a question of what we can afford. Many of us in the state are working 32 hours a week, not 40 any longer, and many of us are grateful that we have the 32 hours. When you look at the public employees of the state, many of whom (not all by any means) are "double dipping", or are followers of the city of Bell philosphy, you will begin to understand why the general populace is not likely to vote for tax increases, and thus, a reduction in services is necessary. The first thing to go shouldn't be firemen, police, or teachers, as are commonly threatened, rather it should be the layers of public service bureaucracies that are redundant, and not terribly cost effective.
singe- i wasn't mocking! Remember, we californians have the 7th or 8th largest economy in the world -- not the continental US. all of those poorer states whose senators have such high ranks in the houses and hold the country hostage for their wealthy corporate buddies. maybe in california, we can send a message.
and dupedagain -- unlike most of the union, we californias are very intelligent. go ahead, call us elitists, we may just kiss you for it.
Singe,
You sound fairly rational. Pretty straightforward. I hope Mr Brown can pull it off.
Giving the voters a choice - where the pro's and con's are laid out - is not a bad thing. People love to complain about those they elect and say they can do better - this will be a chance. Neither choice will be an easy one - and both will come with pain - but that is the times we are in.
We are a replublic - but not and then making the voters take part of the process, is not a bad thing -
“A choice - where the pro's and con's are laid out” … Did this happen with ethanol, silicone breast implants, and other arguments large and small? “Giving the voters a choice” presumes that “the voters” have clear values and priorities rationally (or at least reasonably) applied, competency to acquire and judge sufficient knowledge, wisdom to assess risk (of unintended consequences), patience to achieve settled results, maturity to balance competing ideals and sacrifices, and finally the magnanimity to put others above self. We “the voters” occasionally exhibit such nobility. But often we don’t. Are you confident that Los Angeles will be emblematic of our “better angels”?
donald from VT -- certainly -- it's not like all our public servants are doing what we want them to do in DC, but in the blue part of Cal, we love us some bernie sanders!
Be careful what you wish for. Californians: you reap what you sow. You voted this governor in knowing his reputation in the past. So what else can be said on this?
I'll trade you the Nazi Brewer for Moonboy any day.
HEY ALL YOU CALIFORNIA CITIZENS, WHO LET THIS STATE GET OUT OF CONTROL!!!! You all made your own bed, and let Millions of Dead Beat Mexican Illegals into this state to suck the blood out of the welfare state economy, and let a bunch of crooks take over the state house, and cut deals with unions and pension crooks, and now you are ready to run, when it all comes home to roost!!!!!! Say good by, and leave like Rats deserting the sinking ship!!!!! Maybe the state needs to go bellyup, and start all over again, maybe we should revolt and take the entire country back from the wealthy special interest crooks!!! Maybe, Maybe, Maybe!!!!! Talk to me in about (2) two years, when all the @!$%# has hit the floor!!!! The worst is yet to come!!!!!! GOOD LUCK !!!!!! GH
yes, well i'll tell you what. you look closer and will find it is a republican who didn't want to pay union wages for work!
They will vote to raise taxes to continue to get the same benefits. Of course they will not be willing to pay those taxes, but they will be willing to let the rich pay them for them.
How about if we pay Mexico half of what it cost us a year to keep the illegals that broke other laws in there jails. It would save us half and Mexico would surely make a large profit. Our jails would then be large enough to keep our own criminals.
The weakness of Brown's plan is that people who don't/won't work get to vote. Socialism doesn't work. Cut the friggin' programs we can't afford, stop pussy-footing around with criminals, and deport the illegals. Raising taxes will cost jobs and drive more business out of California. Eventually there won't be anyone left with a job, except Brown of course.
good grief! Don't you think the have-nots outnumber the haves? I can see the masses voting in higher taxes...and all it's going to do is push out the remaining producers/contributers. Anyone worth their salt would be crazy to live in that state and see their hard-earned income sucked dry.
Go ahead Californians, keep living in la-la land. Sooner or later you'll wake up and realize there's no one left to siphon from. Then what are you going to do?
yes, well we'll study your state and see what you're doing!
So Beev let me get this straight, the have nots outnumber the haves? Ca has a very large middle and lower middle income workers, far more than any other demographic. So the working poor and the working middle class are going to vote to increase their taxes when they are barely making it now? We are the workers, producers, I write this from my office in Sacramento where i employ 30+ people and have lived here for over 50 years. As for living in Ca, we've got our issues but I wouldn't want to live anywhere else. An hour and a half to SF, the Ocean and or Lake Tahoe and skiing. It doesn't get any better!
Californians have increasingly become less willing to vote Yes on new taxes, shifting of state monies, and making it easier for state politicians to raise taxes. The last 3 elections (May 2009, June 2010, Nov 2010) seem to show this.
I'm not sure a ballot initiative would be very helpful.
but did you know we no longer allow the state to move around general funds? they have to ask!
is there a way the people can prevent the DC politicians from extrapolating the message of the american people? i am fiercely dissatisfied with the spin in DC
Oh and Marie, we had a choice between someone who I believe is at least honest and wants what is best for Ca. and a bitter, dishonest, hypocritical multi millionaire so far removed from the realities of normal Californians that for better or worse we chose the more trust worthy.