CALIFORNIA BUDGET CRISIS MAY TORPEDO TAX INCREASE INITIATIVE
By: Chriss Street
State Controller John Chiang shocked California legislators today when he sent a letter announcing that the State will run out of cash on March 8th without the legislature agreeing to allow the State Treasurer to delay $2.4 billion in payments to universities, counties and Medi-Cal, plus borrowing another $3.3 billion from Wall Street bankers.
The Controller’s announcement comes just two weeks after California Gov. Jerry Brown gave his State of the State speech to the combines Legislature, then immediately hit the road in a two-day campaign swing through Southern California to tout his November ballot initiative to raise taxes on all Californians. At a stop with 50 of Orange County’s top business leaders and CEOs, the Governor outlined how he was already making severe budget cuts, reorganizing state government, and implementing a 12-point pension reform plan. Brown said he offered these actions as credibility before asking business to support his November tax initiative. Continue reading