Brown: California Budget Deal is Done

SAN FRANCISCO – California Gov. Jerry Brown and Democratic lawmakers announced a balanced budget deal Monday that fills a quarter of the state’s deficit using one-time fixes.

Brown said during a press conference with Democratic leaders the proposed budget includes $4 billion in additional revenue that was not previously budgeted. He said $2.6 billion in cuts would be automatically triggered if the new revenues fail to materialize.

The budget will have no new taxes and does not extend temporary taxes that expire this week.

Brown wanted to ask voters to extend some of those taxes, but could not reach an agreement with a handful of minority Republicans for a special election, which requires a two-thirds majority vote.

Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he anticipates a tax initiative in 2012.

The proposed budget deal fills 75% of the deficit using structural changes, according to Assembly Speaker John Perez, D-Los Angeles.

Brown said the deal would not include the sale of state buildings.

The governor said more details on the proposed budget will be released later

Earlier this month, California lawmakers passed a fiscal 2012 budget, beating a midnight deadline to adopt it or face the loss of their pay. Less than 24 hours later, Brown vetoed the spending plan, citing its billions in borrowing and legal maneuvers used to close a $9.6 billion hole.

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