Monday, May 16, 2011

Fiscally moderate California Governor: report

SAN FRANCISCO - Governor of California Jerry Brown will moderate somewhat its call for these increases in the light of an unexpected increase in revenue, the Los Angeles Times said Saturday as Brown developed a revised budget plan.


The Democratic Governor of the populous state of the United States, which is also the largest issuer of municipal debt, would use a recent break of several billion dollars in revenue to delay income tax increases and to avoid cutting for business areas tax creditsan idea of local officials has lobbied hard against.


It will push an extension of five years of an increase in sales tax and the cost of vehicle and a vote of the State to back hiking, consistent with its previous plan, said the newspaper, quoting officials of the State not identified.


The income tax hike would be the last of the four years rather than five, and begin in 2012, the Times reported.


A spokesman for the Governor refused to comment on the details of the revision. California faces a lack of approximately $ 15 billion through fiscal year which begins in July.


Brown asked repeatedly for a popular vote to extend these increases that expire in the summer and prevent deeper cuts in government programs. But the increase in income has hardened opposition to taxes by the Republicans, who say popular school expenses may be protected.


The Republican minority in the legislature, which has the ability to block many financial plans, would close the deficit remaining with greater reductions for social programs, transfer of funds, reduce costs of pay State and markets services to the private sector.


Education and the application of the Act were largely spared cuts while bills in March signed Brown to reduce the deficit by about $ 11 billion with hard drop discounts on health and social welfare programs.

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