California governor signs budget, closing deficit

SAN FRANCISCO Thu Jun 28, 2012 6:30am EDT

California Governor Jerry Brown attends a celebration at Tesla's factory in Fremont, California, June 22, 2012, as the car company began delivering its Model S electric sedan. REUTERS/Noah Berger

California Governor Jerry Brown attends a celebration at Tesla's factory in Fremont, California, June 22, 2012, as the car company began delivering its Model S electric sedan.

Credit: Reuters/Noah Berger

Related Topics

SAN FRANCISCO (Reuters) - California Governor Jerry Brown on Wednesday signed a state budget passed hours earlier by lawmakers for the fiscal year beginning on July 1 that closes a $15.7 billion deficit.

The legislation, which leaves California with a reserve of more than $800 million, puts into law a budget deal reached last week by Brown and fellow Democrats who control the state legislature.

The two sides had fought over how much spending to cut from welfare programs and changes to the state's welfare system, but they managed to work out a compromise.

They also agreed to include revenue in the budget based on the assumption that voters will approve a ballot measure in November to raise the state's sales tax and increase income tax rates on the wealthy.

If voters reject that measure, California will need to cut spending on politically popular education programs by more than $5 billion, Brown has warned.

(Reporting by Jim Christie; Editing by Lisa Shumaker, John Stonestreet)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (6)
cavedave wrote:
Thank God, one state has a governor who is ready to make the right decisions on taxes. President Obama and the Democrats have long since proved that the real problem in this country are rich people and greedy corporations. Once we begin separating these leeches from their money and retuning it to the hard working poor and middle class we will finally receive some form of social justice in America.

Jun 28, 2012 3:08am EDT  --  Report as abuse
bad68cam wrote:
I couldn’t agree more with you cavedave. The rich in this country thinks it deserves a free pass. I pity this country if Mitt buys his way into office.

Jun 28, 2012 6:53am EDT  --  Report as abuse
USARealist wrote:
Cavedave…I hope that was tongue-in-cheek. Google news articles for the city of Stockton – this is the future of California, city by city.

Jun 28, 2012 9:09am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.