Reuters - California Governor Jerry Brown and Democratic legislative leaders have reached a deal that bypasses Republicans and relies on higher tax revenue forecasts and some spending cuts to close a $10 billion gap.
In a long-overdue moment, governor Jerry Brown has finally admitted the obvious, the state's pension system is broke and California Has "Lived Beyond Our Means". Unions of course are howling at that obvious admission.
Even as they advanced a detailed proposal to close California's remaining $9.6 billion deficit, Democratic leaders intended for the governor to continue negotiating with Republicans. The GOP must provide two votes in each legislative house to enact the budget Democrats and Gov. Jerry Brown really want.» E-Mail This » Add to Del.icio.us
On Tuesday voters in California went the wrong way on three propositions.
Voters approved Proposition 30 "temporarily" increasing the state sales tax and income tax on individuals making over $250,000.
They voted against Proposition 31 that would allow the governor to cut the budget in fiscal emergencies.
They voted against Proposition 32 would prevent unions from making campaign donations via members' dues.
California, like Greece is perpetually in fiscal trouble. Overoptimistic revenue forecasts coupled with spending $2 billion more than expected has California in a deep hole. Governor Jerry Brown has the same non-solution as ever, hike taxes.
Brown wants a "temporary" (as in seven years) tax hike. Given we all know there are no such things as temporary tax hikes in California (seven years is permanent enough in the first place), and also given the California school budget needs an axe, the I say let him.
We can probably solve this in about a week. It’s not that tough
WASHINGTON – President Barack Obama told business leaders on Wednesday that a “fiscal cliff” deal was possible within about a week if Republicans compromise on taxes, and he warned lawmakers he would not engage in another debt ceiling standoff.
Obama, speaking to the Business Roundtable group of chief executives, said Republican leaders in Congress had to accept the reality that tax rates must rise on the wealthiest Americans to achieve a fiscal deal.
Reuters - Republican lawmakers in California on Wednesday fully embraced Governor Jerry Brown's plan for overhauling public pensions and pressed his fellow Democrats, who control the state legislature, to back it as well.