Home > California, Economy, Politics, Trends > Necessary Evil: Gov. Brown Unveils $12.5 Billion in Budget Cuts

Necessary Evil: Gov. Brown Unveils $12.5 Billion in Budget Cuts

January 11, 2011

As previously reported here, California Governor Brown is making good on his promise that he will slash the budget in order for California to bring its structural budget problems under control. It’s ugly. It possibly will affect my 84 year old mother who relies on Medi-Cal in a nursing home. It is a necessary evil if this state is to recover economically and once more be the Golden State of prosperity.

Here is the meat of it: $12.5 billion in cuts: 1.5 billion from CalWorks, called Welfare to Work, 10% pay cut to most state employees, 1.7 billion from Medi-Cal, 1 billion from the University of California System: $500 million from Cal State system and $400 million from community college system

The Sacramento Bee reported today:

Gov. Jerry Brown proposed a budget today that relies on $12.5 billion in spending cuts over the next 18 months and higher taxes over the next five years to solve the state budget deficit.

“What I propose will be painful,” Brown said.

However, he told reporters at the Capitol, “It’s better to take our medicine now and get the state on balanced footing.”

Brown’s budget will include an 8 percent to 10 percent cut in state worker pay. According to his press release, Brown wants to save “$308 million for a 10 percent reduction in take-home pay for state employees not currently covered under collective bargaining agreements.”

The Democratic governor will ask voters in a June special election to approve higher tax rates on sales, vehicles and income for five years. In a written statement today, Brown referred to it as “a five-year extension of several current taxes so that we can restructure in an orderly manner.” But critics are sure to call them tax hikes since taxes would be lower without any further action by the Legislature or voters.

Read more: http://blogs.sacbee.com/capitolalertlatest/2011/01/brown-to-ask-for-deep-cuts-fiv.html#ixzz1AgHPghaV

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