It’s been a while since I’ve reported on the California budget situation, but it seem apropos given that June is right around the corner and with it the constitutional deadline for California to have a balanced budget. Democratic Governor Jerry Brown would really, really like to have four Republican votes to increase taxes; however, all he has found is “no.”
With last year’s change in the California state constitution, a budget only requires a majority vote so Democrats can pass whatever they want…except tax increases. On July 1st, the temporary hike to California’s sales tax (1%) and the income tax (0.25%) expire. Republicans have stated since Brown was elected that they would not vote for any tax increases, and they’ve kept their word.
California’s budget situation isn’t as dire as it was earlier this year. April tax revenues to the state came in $6 billion higher than projected, so the state is currently facing a budget deficit somewhere between $9 and $16 billion. What’s truly needed (massive cutting of the statue bureaucracy and regulations) won’t happen–indeed, Governor Brown signed a new contract with the prison guard’s unions that will, in the long-term, just aggravate the state’s problem–so we’re left with what will probably be more phony measures and budgetary gimmicks (even though Governor Brown pledged that there would be none of these).
As for the budget, we’ll have to see; but as for tax increases, it’s very clear. They’re not going to be happening, and plans need to be made for other methods of handling the situation.