Brown's Countdown, Day 17: Cuts and taxes in eye of beholder

Sacramento Bee ^ | 1/26/11 | Kevin Yamamura

[SmithL]

With a special election to extend taxes looming, Gov. Jerry Brown is selling his budget proposals as a mix of cuts and revenues. Kevin Yamamura of The Bee Capitol Bureau examines his approach.

The claims

Brown characterizes his plan as half cuts and half taxes, roughly $12 billion of each, to solve a $25.4 billion deficit and create a $1 billion reserve through June 30, 2012. The remainder of Brown's plan relies on nearly $2 billion in internal borrowing, transfers and nontax revenues.

Analysis

Brown's budget would slash $8 billion in general fund expenses, including $1.7 billion in Medi-Cal and $1 billion from higher education.

But four other "cuts" involve taking outside money to reduce the state's general fund burden by about $4.6 billion. These include $861 million in Proposition 63 mental health funds, $1 billion in First 5 early childhood development reserves, $1.7 billion in redevelopment funds and $1 billion in a fuel-tax swap that involves local transit money. While these items can be called "cuts" because other government entities will have less to spend, it's misleading to suggest the state will reduce its own spending base . . .

[SmithL]

A new governor brings a new type of smoke and mirrors.

[EagleUSA]

Just more of the same DemoRAT damage, taxation, spending and overall malfeasance and disaster for Taxifornia.

Nothing new folks, move along now.....

[Seruzawa]

Unions of course are left alone.

[p. henry]

Exactly. Without regard to whether the redevelopment process is good or bad, Brown’s proposed raid on redevelopment funds can best be understood as transfering money from the building of tangible things that people use to the maintenance of other uses of tax revenues, which consist primarily of the payment of public employees, also known as Democrats.