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Governor eyes more cuts as Calif deficit swells

May 15, 2012 • Business


Gov. Jerry Brown leaves a news conference after he unveiled his revised state budget plan at the Capitol in Sacramento, Calif., Monday, May 14, 2012. Brown said the budget shortfall swelled from $9.2 billion predicted in January to $16 billion, in part because tax collections have not come in as high as expected and lawsuits and federal requirements that have blocked billions of dollars in state cuts. (AP Photo/Rich Pedroncelli)

SACRAMENTO, Calif. (AP) — California’s sputtering economic recovery is putting a heavier-than-expected drag on state tax revenue, leading Gov. Jerry Brown on Monday to propose deep budget cuts across an array of government services and warn again that even more cuts are ahead if voters reject his tax-hike initiative in November.

Brown’s latest budget plan for the fiscal year that begins July 1 proposes $8.3 billion in spending cuts to close a revised deficit of $15.7 billion deficit, an amount equal to 17 percent of the state’s entire general fund.

The plan would reduce child care for mothers trying to get off welfare, in-home supportive services for the needy and health care for the poor, as well as cut funding to courts and postpone payments to schools.

Those reductions come on top of tens of billions of dollars in state budget cuts implemented since the recession started in late 2007.

Brown, a Democrat, also is asking state workers to share the Login to read more

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