LAO Lists $13.5 Billion in Possible Cuts if Taxes Are Not Extended

At the back of Gov. Brown’s mind has to be the possibility that Californians will not be in favor of the ballot taxes that he wants to put to a vote—that is assuming he can even get the Legislature on board with such a proposal. So if the five-year tax extension doesn’t work out, then what are the state’s options at that point? The LAO has provided some answers with details about $13.5 billion in alternative cuts. These cuts would be extensive, as they would be necessary if state leaders opt to pursue a cuts-only budget in order to tackle the state’s large deficit. For instance, university tuition would be increased by 7-10 percent, state worker pay would be reduced by 9.24 percent, and there would be $1.2 billion in health and social services reductions, among other cuts. Some Democrats have argued that voters need to be made aware of such potential cuts so that they have a clearer picture of the state’s fiscal realities. Capitol Alert has a good round-up of all the cuts that could possibly be implemented, which can be seen here.  More coverage can be seen here.

And officials are continuing to fight back against Brown’s proposal to eliminate redevelopment agencies. Linda Daniels, Rancho Cucamonga's deputy city manager, stated that “It would devastate the city, and I don't use that word lightly. […] Our agency focuses on removing the barriers to economic development to create job growth and private investment. That's where we've focused on, and that's what's at stake if the state eliminates redevelopment." The Inland Valley Bulletin provides coverage of how local governments have been responding to the proposal here.

And coverage of how cities in L.A. County are defending redevelopment funds can be seen here.