Lawmakers: Tax Hikes Still Needed Despite $2B Revenue Boost

SACRAMENTO (CBS) — California’s coffers were surprisingly $2 billion richer on Thursday, but a fierce political battle over looming tax increases could quickly overshadow the find.

KNX 1070’s Jon Baird reports an unexpected windfall in tax revenues likely won’t be enough to sway Governor Jerry Brown to abandon his plan for tax increases.

Despite the congratulatory tone in the state capital, at least one finance official said the governor’s plan for tax increases should still go toward cleaning up California’s remaining $15 billion fiscal mess.

H.D. Palmer, a spokesman for the state Department of Finance, called on lawmakers to look at the big picture when it comes to the state’s massive deficit even with the newly-found funds.

“It doesn’t lessen the necessity for the legislature to take the tough steps that are still necessary to close this budget gap,” Palmer said.

But Assembly Minority Leader Connie Conway pointed to the extra cash as proof that California won’t need the tax extensions.

“Ask the people after we’ve already solved the problem,” Conway said. “Don’t make them responsible for five years’ worth of a new tax burden that may not be necessary to balance the budget.”

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

  • J Boy

    Mandatory drug testing for ALL those on social services will CUT 100s of millions over night.

    Cut the bearcatic BLOAT…Probably 25% of all high-level state employees could be cut with nary a speed bump in the running of the state. There, I just saved another 10-20 million.

    Sell all non-emergency state vehicles…viola! Another few million in the bank not even counting the reduction in buying gas…Shoots, that alone would saved $100 trillion billion quintillion dollars per week…

    Raise my taxes? EF YOU!

  • Steve

    It doesn’t matter how much money Sacramento gets. It will never be enough to overcome their out of control spending.

  • upyours

    How is it every year there is a surprise windfall, who are the dumba$$ actuaries examining statements and making projections? That milksop A$$HOLE, Gray Davis, had his head up his self-righteous egotistical A$$ when he said public sector pay must be high to attract the best and the brightest. He was at the head of a looong line of incompetent moron a$$wipes.

  • Mr , Time

    The surprise windfall is the 2 Billion of 132 Billion given to Israel last year for aid; I guess the some one in DC forgot to give the 2 billion to make it 132 billion;Yes we can count our lucky star’s CEO Banker was in hand’s reach; But don’t worry America they’ll get all back before July 1,01, they will just jack up the price’s on gasoline to $5 or 6 89 at the gas pump’s. We American’s pay $10.dollar’s at the pump’s; after all we own nice new $30,000 to 80,000 dollar truck’s and car’s to drive around in; so tell your senator or your congressmen tell them to raise the Tax’s a crossed the board 25 percent for everybody. That way we American’s pay China before they come over here and take our land away from ( us ) all because our senators and congressmen sold it ( ALL ) to them.

    • shutup

      California doesn’t send money to Israel, dumbazz.

      • Mr , Time

        No but they own you SLAVE.

  • shutup

    Mr , Time

    Looks like the balls up your azz do all the the talking, moron pu$$ylips.

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