Billions In Unanticipated Tax Revenue Could Change CA Budget Proposal
SACRAMENTO (CBS) — A recent surge in revenue could prompt Governor Jerry Brown to scale back his current tax proposal.
The state added about $2.5 billion in unanticipated tax revenue in the first four months of 2011, and forecasters say there could be billions more in the months ahead.
Officials familiar with the Governors revised budget — which is set for release Monday — say his proposal to raise income tax rates will drop from five to four years, with the higher rate not taking effect until 2012.
“If we don’t take long term action to balance this budget, we are looking at a multi-billion dollar budget deficits in each of the next three fiscal years. We also have the issue of unprecedented borrowing that has been done to balance past budgets that’s going to come due in the coming years,” said HD Palmer of the State Department of Finance.
Officials say the unexpected revenue boost is apparently not enough to save the 70 state parks which are set to be closed due to budget cuts.