3/12/2011

Budget Cuts the Democrats way in California

After "cutting" the California budget, spending is still projected to grow at 31 percent over the next five years.

Governor Jerry Brown’s proposed $12.5 billion in budget cuts won’t prevent California’s spending from increasing 31 percent during the next five years, according to figures from his budget office.

Expenditures would rise to $111 billion by 2015 from $84.6 billion in the fiscal year that begins July 1, under Brown’s plan. A third of the increase is required by the constitution to bolster education. Much of the rest is for projected growth in health care and welfare, and to make up for lost stimulus funds, Brown’s office said.

Republican opposition threatens to derail Brown’s plan to repair the financial strains that have left California with the biggest deficit among the U.S. states and the lowest credit rating. He wants to offset even deeper cuts to schools and the poor by retaining $9.3 billion a year in higher taxes and fees that are otherwise due to expire.

“While we must bridge this year’s budget gap, we must also rein-in future spending to fix the state’s chronic budget crisis," said Senate Republican Leader Bob Dutton. . . .

Labels:

0 Comments:

Post a Comment

<< Home