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Can Gov. Jerry Brown keep the promises he made with Proposition 30?
By: Chris Megerian July 3, 2016
[...]
A coalition of unions and other advocacy groups is pushing a new initiative, which will be on the November ballot as Proposition 55, that would keep some of Proposition 30’s taxes instead of letting them expire as Brown pledged.
Proposition 30 raised the sales tax by a quarter-cent through 2016, and it increased levies on individuals making at least $250,000 annually until the end of 2018. The new marginal tax rates start at 1% and reach 3% on income of more than $500,000. Proposition 55 would let the sales tax hike lapse but keep the higher income tax rates until 2030.
Without the increased revenue, the state could face a $4.3-billion deficit in the coming years, according to Brown administration estimates. The gap would be even larger if California’s economy slows down or is struck by another recession.
Rather than “gliding into the future,” Brown would be forced to slash spending shortly before finishing his final term.
The scenario is “not pretty” and education funding could face billions of dollars in cuts, said Jennifer Wonnacott, a spokeswoman for this year’s tax campaign.
“Schools are just beginning to recover from the cuts that were made during the recession,” she said. “But there’s still a long way to go.”
The money from Proposition 55, which nonpartisan legislative analysts estimate would range from $4 billion to $9 billion annually, would go to local schools, community colleges and public healthcare.
http://www.latimes.com/politics/la-pol-sac-jerry-brown-budget-proposition-30-20160703-snap-story.html
Can Gov. Jerry Brown keep the promises he made with Proposition 30?
By: Chris Megerian July 3, 2016
[...]
A coalition of unions and other advocacy groups is pushing a new initiative, which will be on the November ballot as Proposition 55, that would keep some of Proposition 30’s taxes instead of letting them expire as Brown pledged.
Proposition 30 raised the sales tax by a quarter-cent through 2016, and it increased levies on individuals making at least $250,000 annually until the end of 2018. The new marginal tax rates start at 1% and reach 3% on income of more than $500,000. Proposition 55 would let the sales tax hike lapse but keep the higher income tax rates until 2030.
Without the increased revenue, the state could face a $4.3-billion deficit in the coming years, according to Brown administration estimates. The gap would be even larger if California’s economy slows down or is struck by another recession.
Rather than “gliding into the future,” Brown would be forced to slash spending shortly before finishing his final term.
The scenario is “not pretty” and education funding could face billions of dollars in cuts, said Jennifer Wonnacott, a spokeswoman for this year’s tax campaign.
“Schools are just beginning to recover from the cuts that were made during the recession,” she said. “But there’s still a long way to go.”
The money from Proposition 55, which nonpartisan legislative analysts estimate would range from $4 billion to $9 billion annually, would go to local schools, community colleges and public healthcare.
http://www.latimes.com/politics/la-pol-sac-jerry-brown-budget-proposition-30-20160703-snap-story.html