California Healthline Daily Edition

Summaries of health policy coverage from major news organizations

Brown Defends Prop. 30, Knocks Schwarzenegger for State’s Budget Deficit

On Thursday, Gov. Jerry Brown (D) said that his compromise tax hike initiative -- listed as Proposition 30 on the November ballot -- is a "common sense" way to boost state finances, the Sacramento Bee's "Capitol Alert" reports.

Speaking with the Bee's editorial board, Brown criticized former Gov. Arnold Schwarzenegger (R) for leaving the state with an ongoing budget deficit (Yamamura, "Capitol Alert," Sacramento Bee, 9/6).

Details of Compromise Tax Hike Plan

Prop. 30 -- developed by Brown and supporters of the "Millionaires Tax" -- would:

  • Increase the personal income tax by one percentage point for individuals who earn $250,000 annually or couples who earn $500,000 annually and by two percentage points for individuals who earn $300,000 annually or couples who earn $600,000 annually;
  • Extend the income tax increases on wealthy residents from five to seven years; and
  • Increase the sales tax by a quarter of a cent (California Healthline, 8/23).

Brown's Comments

According to Brown, Prop. 30 initially would raise about the same $7 billion that Schwarzenegger lost by eliminating a car tax and not raising taxes on out-of-state firms.

Brown said, "These cuts [in revenue were] made before I became governor," adding, "And there were no cuts in corresponding expenditures."

Brown also criticized Proposition 38, a rival tax hike plan by attorney Molly Munger ("Capitol Alert," Sacramento Bee, 9/6).

Prop. 38 would raise income tax for all residents, with highest earners seeing the largest hike. Most of the revenue would support education programs (California Healthline, 8/23).

Brown said that Prop. 38 would force cuts on higher education and that it would result in more initial cuts for grades Kindergarten through 12 ("Capitol Alert," Sacramento Bee, 9/6). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.