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Governor Says Tax Boost Needed To Maintain California Dream

As elections near, Brown makes another appeal for Prop. 30 to California voters

Gov. Jerry Brown, seeking to promote his Proposition 30 tax initiative, told a San Francisco audience Thursday that, "the California dream is still vibrant," but said the tax increase is needed to keep it that way.

The measure on the Nov. 6 state ballot would temporarily increase sales taxes by one-fourth of a cent per dollar and raise income taxes for people who earn more than $250,000 per year.

The estimated $6 billion raised annually would be devoted to education, including 89 percent to public schools and 11 percent to community colleges.

“Proposition 30 is fair, it's moral, it represents the best in our California tradition and it is critical to maintaining the California dream,” Brown told a noontime gathering of 250 people at the Commonwealth Club.

Brown said that despite California's budget woes, "We're the leading place in innovation and technology in the world.

“We have a fabulous state that we live in,” he said. “This is a vibrant, creative place with one of the most extraordinary collections of human beings in the whole world.”

But “we have to invest in our kids, colleges, and brain power” to keep that technological and creative edge, Brown said.

The current state budget enacted at the end of June is based on an assumption that voters will approve the tax measure and contains automatic trigger cuts of $6 billion to schools if it is not passed.

Those cuts would result in a shortening of the school year by two or three weeks and a "serious increase" in public college tuition, Brown warned.

If Proposition 30 passes, the increased sales tax would be in effect for four years and the income tax surcharge for seven.

The latest Field Poll, which was released Thursday, shows 48 percent of a sample of likely voters in favor of the measure, 38 percent against and 14 percent undecided.

A competing initiative, Proposition 38, led by Pasadena attorney Molly Munger, would increase income taxes for almost all Californians on a sliding scale and would dedicate the $10 billion raised each year to public schools and early childhood education.

The new Field Poll showed that measure trailing, with 34 percent of likely voters supporting, 49 percent opposed and 17 percent undecided.

Bay City News Service

Don Scioli November 05, 2012 at 04:56 PM
He's the guy who started ruining California back in the 70's-80's. now he trying to ruin it again.
janna nikkola November 05, 2012 at 05:10 PM
I'm personally opposed to any tax increases proposed by Governor Moonbeam for two very basic reasons: 1. He betrayed distressed California homeowners and demonstrated bad faith when Attorney General Eric Holder and 49 state AGs negotiated with 5 major banks for a $25 BILLION fund to reimburse homeowners who had lost their homes in foreclosure caused by robosigning and other fraudulent practices by the banks -- then Brown and CA AG Kamala Harris diverted those funds to fill holes in the state's budget, rather than disbursing it to the distressed homeowners whom the funds were meant to help. 2. Brown has done NOTHING about the $67 BILLION in "unfunded pension obligations" which was caused by the CALPERS Investment Committee "investing" pension funds in high risk stock market investments rather than safer more conservative bonds. In the city of Novato alone contributions to city employees' pensions were budgeted to increase by 71% for the 5-year period 2010-2015 alone to compensate for these "stock market losses", even though the taxpayers had already contributed the prescribed and budgeted amounts for employee pensions. I think all Californians want our fire fighters, police officers and teachers to receive a fair wage and a fair pension, but this $67 BILLION loss was caused by CALPERS itself and then simply passed on to the taxpayers. CALPERS has been corrupted and it may take a taxpayer revolt to correct this injustice before more CA cities are forced into bankruptcy.
janna nikkola November 05, 2012 at 05:26 PM
P.S. The $67 BILLION losss was for the 2-year period 2008-2009 alone. I have no data about CALPERS "stock market losses" losses for 2010 and 2011. When CALPERS was first founded, pension fund investments were required to be in conservative bond investments, then this rule was amended to allow for 25% of the fund to be invested in the stock market, then amended again to eliminate any limit for stock market investments. California politicians are averse to challenging anything CALPERS does because it's been known to spend big money on negative campaigns against any politicians who do go up against them and they invest heavily in politicians who will back them. It would be nice to think funds from this tax increase would actually go toward schools and children, but politicians are very adept in how they present their proposed legislation to the taxpayers and "saying" it's for schools and children definitely helps to get their bills approved, but I'm skeptical. There are too many other holes in the state budget where I think the money would actually wind up.
Scott November 05, 2012 at 05:45 PM
Tax increases should be rejected because our politicians simply cannot act like adults and right size their budgets by prioritizing programs. Instead they want it all and keep raising taxes to get them. And even then they still cannot balance the budget. This governor is telling us if the taxes are not approved education gets cut. That means education is his lowest priority! There are plenty of other bureaucracies that we don't need, at least don't need as much as education, and yet he cuts education. Says a lot. However, your assumption on why public pensions are out of control is off the mark. Pensions should invest in a diversified mix of assets to maximize their long term returns while matching the liabilities of their beneficiaries. They have a mix of beneficiaries - some should have low risk portfolios, others need higher risk - it's largely determined by the age of the participants. The pension problem has arisen due to underfunding and big benefits accorded to the beneficiaries. This is what happens when unions own the politicians they end up negotiating "against" for their contracts. The ONE problem this state has is public employee unions contribute so much money to politicians they own them. They get huge benefits that we pay for and then our taxes go up. EVERY tax increase on the ballot can be traced to public employee pensions and benefits. Fix that, fix the state.
Scott November 05, 2012 at 05:48 PM
They didn't fix the pension problem and they won't until they have to. Stop giving them money and they'll have to.
zoe moire November 05, 2012 at 06:52 PM
He's wasting his time with us, we've already voted. Guess he is not aware of the high percentage of early voters in CA.......... we pay enough money right here in Hbg. to keep this town running.
Anne November 05, 2012 at 06:53 PM
No New Taxes! They need to stop the excess spending.
David Randolph November 05, 2012 at 08:21 PM
On increasing taxes, the democrats never seem to know when to say when. This state's great days are behind it and we will never see them again if we keep sending the same nitwits back to Sacramento. Vote NO on 30, YES on 32.
Michael November 05, 2012 at 09:20 PM
continued use of the ridiculous and non relevant 'California Dream' only shows how out of touch guys like Brown are. Was reckless spending over the past 30 years by legislatures who were not held to be fiscally responsible also a part of the California dream? Is continued spending of our tax dollars to provide government benefits to non citizens a part of Brown's California Dream? Is getting a government job including lucrative retirement benefits for as little as 20 years work (not available to the taxpayers paying the tab) a part of the California Dream? Is moving to spend BILLIONS of dollars we do not have to build the high speed rail a part of the California Dream. And there is nothing 'moral' about paying taxes Mr. Brown. Moral? There has been a severe SPENDING problem in CA not a taxing problem. The only way to stop a spending problem is to take the checkbook away from the irresponsible legislators and Governor. Time to stop this insanity.
Jerome J Ghigliotti Jr November 05, 2012 at 09:39 PM
If Prop 30 is supposed to go for education, then why are the unions and the Democrats warning that if Prop 30 does not pass then prisons and state employee pensions wil be affected? Why? Because Prop 30 is a deception. Sacramento will take General Fund money out of education and spend it as they will in amounts equal to the money brought in by Prop 30, so the net result will be that education does not get a penny more after voting in this new tax. They did it with the lottery money that would go to "education" but got raided for pet General Fund projects. I am tired of Sacramento spending money for social engineering and neglecting infrastructure.
Wire November 05, 2012 at 10:00 PM
This tax is to help pay for Brown's legacy, medium speed choo choo train Bakersfield to the state prison in Corcoran. I expect many of the early users will be people going to visit family members in Corcoran State Prison. This should help the traffic flow on the 99.
Reginald "Rex" Henderson November 05, 2012 at 10:20 PM
You said what I was going to say. Good 'ol Governor Moonbeam...
Reginald "Rex" Henderson November 05, 2012 at 10:21 PM
Maybe we can find a way for Sonoma County to secede from the rest of the state...
drof2th November 05, 2012 at 11:30 PM
This KOOK needs to STOP SPENDING and handing out FREEBIES to folks that have broken into America!!!!
Chuck Ciaccio November 06, 2012 at 12:59 AM
I am really tired of watching politicians hold education hostage. It's time to stop the crazy spending and reel in CALPERS. California dream...how about a nice dose of reality for a change? No on 30 Yes on 32.
Michael Reyff November 06, 2012 at 01:59 AM
Governor Brown and his cohorts in the legislature demonstrate that they are economically and financially illiterate with support of irresponsible reckless spending and taxing the producers to the point of leaving the State of California in droves. This results in reducing the population of those who pay the taxes which results in higher unemployment and larger budget deficits. If Governor Brown and his cohorts governing this state understood and accepted the laws of economics (even the communist Chinese figured this out!), they would cut the crazy spending and create an environment that attracts businesses which creates jobs that result in exponentially higher tax revenues. This has been proven over and over again. Unfortunately, I am betting on the sun rising in the west and setting in the east before common sense economics and policies take hold in Sacramento.
janna nikkola November 06, 2012 at 04:53 AM
When the city manager in Novato first started whining about the $5 million/year budget deficit, I took the time to analyze his proposed budget for the 5-year period 2010-2015 wherein he was budgeting a 71% increase in contributions to employee pensions "to cover stock market losses". Novato taxpayers had already contributed the required amounts to employee pensions, so the 71% increase was just to cover those stock market losses. When CALPERS started out, pension funds were required to be in safe, conservative bond investments, then it was amended to allow 25% of the fund to be in the stock market, then amended again so there is currently no limit on how much of the fund can be invested in the stock market (Wall St:The World's Largest Casino). Since the taxpayers play no part in CALPERS investment decisions and those investment decisions are made only by the CALPERS Investment Commitee, it's pure corruption to pass those losses on to the taxpayers. Private sector employees fortunate enough to have an employer-funded pension have lost on average 40% of their pensions. Public employees have lost nothing because the losses were passed on to the taxpayers and retirees continue to receive full pensions plus annual 3% cost of living increases. CALPERS must be corrected so they bear responsibility for the investment decisions they make on behalf of public employees before more CA cities are forced into bankruptcy.
SP November 06, 2012 at 05:24 AM
Great point. I was under the impression that one of the big issues with prop 30 was that it was not dedicated solely to education. Anything that flows through the general fund is at riskof being wasted. However, having school age children I feel like I'm stuck.
Guy Thompson November 06, 2012 at 07:28 PM
California is Obama's dream: http://redpillreport.net/2012/08/15/california-is-obamas-dream/
Dave Francis November 16, 2012 at 09:40 PM
Obviously there is an exception to this rule, whereas there are special needs people, the sick and handicapped in some form or other. There are the homeless veterans and plenty other others, but we have become an public assistance nation, but some of the 49 percent that Mitt Romney talked about have scrounged their way through life and allowed the taxpayers to carry them. A great number have figured a way to deceive the welfare system, which is a stain on the real workers. Because the system could easily be thwarted, with stolen ID, the elderly and the sick lose their major assistance to the scroungers. When we cannot truly look after our troops returning from the warzones and still have millions of homeless without hope, then why are we either bringing in millions of legal immigrants, other than highly skilled workers that are always welcome? Why is not illegal entry a Felony? CAN ANYBODY ANSWER THAT QUESTION?
Dave Francis November 16, 2012 at 09:40 PM
HOW MANY LEGISLATORS ARE BRAZENLY LYING ABOUT THE TRUE DEFICIT IN THE 50 STATES? California has the highest population of illegal aliens who have settled there. Thousands of children of illegal alien parents gaining automatic citizenship and the cost is thrown at the taxpayers. Health care and other free handouts that are the right of citizens is being disbursed to anybody who sneaks across the border or steps off a plane. None of the 50 states is exempt from this silent attack on our country or the pilfering of their general treasuries. Now the Democrats have their majority public entitlements will be pouring out across the state to all the “Freeloader voters” the spongers and the people who have no intention of finding a job. A large proportion who pay no taxes at all, the parasitic people who are a great windfall for the Democrats and Liberals, who believe we owe them a living?
Dave Francis November 16, 2012 at 09:41 PM
MULTIPLE LIES COMING FROM THE DEMOCRATIC MAJORITY ASSEMBLY IN THE SANCTUARY STATE. Stephen Frank Stated on 11/14/2012 on California deficits as follows at http://capoliticalnews.com/ In the past two months, the cash deficit of the State has gone from $22.3 billion to $24.7 billion—just for the first four months of the year. Plus the State OWES $12.5 billion to K-12 education It owes $15 billion stolen from Trust Funds to cover cash deficit It owes $10 billion BORROWED to cover the rest of the cash deficit. The State owes the Feds $10 billion for the loan to the unemployment insurance fund—so California can continue to send out unemployment checks. That is a total of $71.5 billion—and there is more. Yet, the State claims “California faces a $1.9 billion deficit through June 2014, significantly smaller than in recent years after voters passed two tax initiatives last week, the nonpartisan Legislative Analyst’s Office said last Wednesday” They claim we will have this small deficit, instead of $71 billion because of the $9 billion Prop. 30 is going to bring in, in new revenues! Any wonder our kids are illiterate—this is the math taught in our schools. Government lies—and tries to make you feel good about being insolvent. Seems like marijuana must be legal in government offices, he has studied.

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