Response to Governor's May Revise Budget

Monday, May 16, 2011

(Sacramento) - Assemblyman Jim Nielsen (R-Gerber) commented today on Governor Brown's May Revise Budget plan. Last week, Nielsen, Vice Chair of the Assembly Budget Committee, and his Republican colleagues presented a roadmap that would solve the state budget deficit without raising taxes and without extending any cuts to education and public safety.

"Raising taxes only guarantees increased spending," said Nielsen. "The news that our budget deficit continues to shrink and that California continues to take in unexpected tax revenue, projected now to be an additional 6.6 billion dollars, is further proof that we don't need to impose billions in higher taxes on already overburdened taxpayers to balance the budget."  

"The governor, commendably, has now embraced, at least verbally, a budget spending cap, but he continues to insist on imposing 50 billion dollars in tax increases on Californians," said Nielsen. "This revised budget doesn't correct the dangerous public safety realignment plan that will diminish justice and will make all of us much more vulnerable to victimization."

The governor's revised budget assures an over 31 percent increase in state spending over the next three years, according to the Department of Finance multi-year projection from last January.

Based on the same January projection of the Department of Finance, the personal income tax revenue has increased above projections, but corporate income taxes are down, which is a reflection of the continued hostile business environment in California. Continuing the tax-drain on California businesses will lead more employers to leave our state and keep California unemployment at destructive levels.

"It's time to accomplish a no-tax increase budget, with real spending reforms that will ensure California's budget gets and stays balanced," concluded Nielsen.