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Higher Taxes or More Cuts Governor Brown's 2012 Message to California

By KSEE News
January 18, 2012 Updated Jan 18, 2012 at 7:06 PM PDT

Governor Brown is proposing cuts and higher taxes to close the state's budget gap; that was the Governor’s message in Wednesday’s State of the State address.

“Neither is popular but both must be done,” says Brown. The idea calls for $35 billion in new taxes. If approved, the money will fund big government projects like the controversial high speed rail. Despite the project’s criticism Brown says “the critics were wrong then and they are wrong now”.

The tax revenue would also pay for the Bay Delta Conservation project. It's an over $10 billion water project that is expected to provide additional water for 25 million Californians and thousands of acres of farmland. “Having a reliable water supply from the delta really effects the east, west and south sides of the San Joaquin Valley,” says Ron Jacobsma of the Friant Water Authority.

Brown says his cuts and tax revenue put a big dent in last year's $20 billion deficit. He says this year the state's shortfall is only one-fourth the amount that has Republicans questioning the tax hike.

“If the problem is only a quarter of what it once was….then why do we need to raise taxes? Sacramento still wants more of your money and refuses to address chronic problems that leave this state in a financial mess year after year,” says Republican Assemblyman David Valadao.

If higher taxes aren't approved over a billion dollars will need to be cut. Brown says he favors education saying “we need to devote more tax dollars to these basic services”, but 90% of his trigger cuts will hit schools.

Despite the growing problems, Governor Brown ended the State of the State promising Californian's a better future. “We're on the move, on the mend, let’s get it done,” says Brown.

In his speech, Governor Brown also mentioned retirement pensions. He says as of now, there are three times more people retiring that joining the workforce; he says the numbers don't add up and is looking to reform the system.

Governor Brown says despite the state's economic problems personal income grew by $100-billion and the state added 230,000 jobs in 2011—that was a much higher rate than the nation as a whole.

Christina Lusby Reporting.

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