Revenue Rebound Poses Challenge For Brown’s Budget

SACRAMENTO (AP) — California is seeing a resurgence in tax revenue, but what should be good news is turning into a political liability for Gov. Jerry Brown.

The Democratic governor has been trying to persuade a handful of Republican lawmakers to support a tax extension to help close the state’s $15.4 billion budget deficit. But he’ll have trouble selling that plan if revenue keeps rising.

Republicans say renewing the higher vehicle, sales and personal income taxes approved two years ago is unnecessary.

Assembly Republicans have issued a proposal to cut state workers’ wages by another 10 percent, take money from special funds and make further cuts to programs for the poor, disabled and elderly.

The governor’s finance director cautions that even though the state has more money, it doesn’t cover the state’s shortfall.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


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