Gov.-elect Jerry Brown will propose a ballot measure to extend temporary tax hikes set to expire next year, while pressuring fellow Democrats to consent to billions of dollars in spending cuts in virtually every area of state government, sources said.
The tax package, planned for the June ballot, would extend higher vehicle, sales and income tax rates. It likely won't include additional new taxes, such as an oil severance tax.
Voters in May 2009 rejected Proposition 1A, a measure that similarly sought to extend the higher tax rates. To make the June proposal more palatable to voters, Brown's proposal would direct a significant part of revenue to local governments, while also shifting to local agencies responsibility for some services the state now provides.
While observers have for months expected Brown to propose a tax measure once he takes office next week, this is the first definitive indication that he will. The budget deficit is estimated to be as much as $28 billion over 18 months.
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