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
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.
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.
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.
http://redpillreport.net/2012/08/15/california-is-obamas-dream/
Why is not illegal entry a Felony? CAN ANYBODY ANSWER THAT QUESTION?
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?
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.