California Governor Signs Budget Relying On Taxes
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SACRAMENTO (AP) — Gov. Jerry Brown has signed a new budget for California that relies heavily on voters approving his proposed tax hikes in November.
State lawmakers passed final budget implementing bills Wednesday before Brown signed the main bill ahead of a midnight deadline.
California’s spending plan for the fiscal year starting July 1 includes welfare and social service cuts. Brown held off on signing the budget until Democrats who control the Legislature agreed to deeper cuts.
Brown’s tax initiative would raise the sales tax by a quarter cent to 7.5 percent for four years, and boost income taxes on people who make more than $250,000 a year for seven years.
If voters reject the tax initiative, a series of automatic cuts will be triggered, largely on public schools.
(Copyright 2012 The Associated Press.)