Monday, January 9, 2012

Legislative Analyst: Jerry Brown tax raises only $4.8 billion, not 6.9 billion

The state's top fiscal analyst says Gov. Jerry Brown's tax hike would raise $2.1 billion less than he is banking on to balance his new budget, requiring deeper cuts than the governor proposed or more revenues if lawmakers use that estimate. - Sacramento Bee

The Democratic governor is counting on a voter-approved tax increase on sales and the wealthy to generate $6.9 billion for the 2012-13 budget. But the nonpartisan Legislative Analyst's Office says Brown's plan would raise only $4.8 billion in the first budget cycle.

The Bee obtained a copy of the analysis of Brown's plan, contained in a January 11 letter to Attorney General Kamala Harris that is required for ballot preparation. Though signed jointly by the Legislative Analyst's Office and Department of Finance, it contains different projections for Brown's tax proposal.