Monday, January 10, 2011

Chainsaw Brown Calls for $12.5 Billion in California Budget Cuts....

...But then wants to take an equal amount out of taxpayer hides. (In otherwords, he will also use the chainsaw to threaten California residents to kick in billions.)

California faces a $25.4 billion budget gap over the next 18 months, according to state estimates. Gov. Brown's plan will close that gap by the cuts and revenue increases.

His plan calls for a 10 percent pay reduction for most state employees. The plan also calls for cuts equal to 10 percent of the current year’s $125.3 billion in other spending. Cuts include $1.7 billion from Medi-Cal, the state’s version of the Medicaid program for the poor; $1.5 billion from CalWorks, a welfare-to- work program; and a combined $1 billion from the University of California and the California State University systems, which together serve 663,000 students. Additional cuts will be made to prisons and the courts.

The plan will also raise $12 billion in additional tax revenues. The budget calls for temporary continuation of taxes that were set to expire.

“Since it will take some time to fully implement these changes, I propose to ask the voters for a five-year extension of several current taxes so that we can restructure in an orderly manner,” the Governor explained.

Despite all this, it remains unclear how much off balance sheet pension liabilities remain, and how easy or difficult it will be for the Governor to pass this budget.


  1. Did Hell freeze over? Who knew! Of course the tax increases will stay because the Democrats are owned by the unions.

  2. Illinois is increasing it's taxes as well (as will the rest of the 48 states soon enough).

    They will bleed us dry until it all collapses. How immoral, stealing hard earned money away from people to cover your poor spending habits to make up for the shortfalls in the budget.