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California Revenue Up, But Brown Still Pushes Tax Hikes

SACRAMENTO (AP) — Gov. Jerry Brown has released a revised state budget that calls for a 5 percent increase in spending over the plan he released in January but says a renewal of expiring tax increases is still needed to close California's remaining budget deficit.

The governor announced his updated spending plan on Monday for the fiscal year that begins July 1, saying the deficit has been cut to $9.6 billion, about one-third of its original size. He acknowledged that revenue from income, sales and corporate taxes is rising, but says it's not enough.

He says closing the shortfall through cuts alone will hit public education especially hard.

The governor is proposing spending $88.8 billion from the general fund, the state's main checkbook. Lawmakers have until June 15 to approve a budget.

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 This material may not be published, broadcast, rewritten or redistributed.)

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