Sacramento, CA, United States (AHN) – California Gov. Jerry Brown on Monday was set to unveil an updated budget plan to close a record $26.6 billion deficit while taking into account better-than-expected April tax receipts and Republican opposition to a June ballot on tax extensions.
The announcement will come as the end of the fiscal year looms, and teachers and students in the state, which has the nation’s largest university system and the world’s eighth-largest economy, protest further cuts.
Brown early this year proposed a plan reducing spending by $12.5 billion, including $1.4 billion in cuts to higher education, and generating $12 billion from an extension of taxes that are due to expire this summer.
The tax extensions require a June ballot that in turn, must first be approved by two Republicans from the Assembly and two from the state Senate. The deadline for including the extensions in the ballot has passed, and unions have asked lawmakers to instead pass a bill allowing the ballot.
The governor’s revised budget plan is expected to seek at least some of his revenue-generating tax hikes even as Republicans point out the state’s more than $2 billion in unanticipated April tax revenue.
Last week, Brown announced drastic measures such as eliminating the Unemployment Insurance Appeals Board and shuttering 70 of 278 state parks, including the governor’s mansion.
Eliminating the appeals board, which is composed of appointees who preside over appeals on disputes about jobless and disability claims, would save the state $1.2 million.
The closure of parks would reduced spending by $11 million in the fiscal year starting in July, and another $22 million the following year. Parks with the least attendance and cultural and environmental significance were chosen for the closure, which will not affect 92 percent of public attendance in parks.
Brown, who served as governor for two terms nearly three decades ago, also plans to merge the state’s two personnel agencies into a single human resources department to save at least $5.8 million.
Previously, he ordered a hiring freeze and slashed the number of state cars and cell phones by 50 percent.
Republicans, who released an alternative budget plan last week, have railed against the latest proposals as “posturing” and ” misguided threats.”
State GOP spokesman Mark Standriff called the planned closure of parks “a ‘Washington Monument Strategy’ that is both cynical and manipulative, and shows little respect for the taxpayers.”
The Republican plan relies on the higher April revenue to prevent cuts to education and law enforcement. It does not raise taxes and calls on state workers to “do their part” with a 10 percent reduction in pay, benefits and other employee costs, which the GOP says would provide the government with $1.1 billion in savings.
The California Teachers Association, which held statewide protests last week, said the GOP’s alternative proposal would leave a $14.7 billion budget gap and fails to provide “real solutions.”
The San Francisco Chronicle said in its editorial on Monday that the GOP plan “should be dismissed as a nonstarter,” because it “included a heavy dose of borrowing and reliance on ‘savings.’ ” The newspaper also blasted Republicans for pushing “a ridiculously long wish list that strayed far from the subject of the budget.”
In March, Brown ended negotiations with Republicans after what he said was “an ever changing list of collateral demands” in return for support for a special election, such as giving a $1 billion tax break to out-of-state corporations so the companies would bring jobs to California.
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