Brown Warns of Additional Cuts if Voters Reject Tax Plan

Gov. Jerry Brown (D) has warned that he will propose additional spending cuts that would be triggered if voters reject his proposed November 2012 state ballot measure to temporarily raise income and sales tax rates. In a Twitter message on Thursday, Brown spokesperson Gil Duran reiterated the governor's warning. The ballot measure would generate $7 billion annually in an effort to narrow an estimated $13 billion budget deficit. Brown said his budget proposal for the next fiscal year would include projected revenue from his proposed tax increase, noting that if his ballot measure is rejected, automatic cuts would be required to eliminate the shortfall. Also on Thursday, Brown issued an executive order directing state Finance Director Ana Matosantos to work with state agency secretaries and department directors to develop a plan within 90 days to incorporate cost savings and efficiencies into the budgeting process.

• "Brown Says More Automatic Cuts To Come if California Tax Plan Voted Down" (Marois/Palmeri, Bloomberg, 12/9).
• "Brown Warns of Additional Cuts if Tax Plan Fails" (Lin, AP/San Jose Mercury News, 12/8).