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.

KNX 1070’s Chris Sedens reports.

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.

  • Just a Thought

    It’s good to see a tiny glimmer of hope

  • Robert Longdon

    Cutting back on Welfare would help a lot. Why don’t you ever hear anything about that. People have been abusing that system for years.

  • Helen in Palmdale

    I’m a lifelong CA resident, I know exactly what will happen to this new revenue. It will be sucked into the black hole that is the government in CA. It’s already spent folks. Believe it. Brown hasn’t changed a bit. Giveaways to the unions, more spending, more programs, more more more.

    The average taxpayer has to have a budget, and when income declines, so does spending. This Dem controlled government in CA has never met a tax they didn’t like. They continue to spend like drunken sailors, punishing the productive, while they cater to the non-productive (their base). All the while industry is lining up to jump the ship. California is one of the worst states for doing business. High cost of living, housing, food, fuel, taxes and unrealistic regulatory requirements.

blog comments powered by Disqus
Sandwich Generation

Listen Live