California budget
Gov. Jerry Brown’s budget proposal relies on asking voters for three key tax increase extensions in a June special election: a .25 percent increase in personal income tax rates, which expired at the end of 2010; maintaining a 1 percent bump in the sales tax, which lapses at the end of June; and extending the hike on the vehicle license fees. His proposed $12.5 billion in spending reductions would affect most government services, except K-12 education. The higher tax rates would remain in effect for five years.
Though the extensions don’t target any one industry, they would affect businesses, suppliers and the voters who originally rejected the increases. Brown needs two-thirds of lawmakers to approve the plan for the ballot, including at least five Republican votes.