California Governor Brown All Set to Revise Budget

In an unexpected turn of events, spurt in revenue growth has put the California Governor, Jerry Brown into a situation of fix. As per reports, the Democrat candidate Brown has been calling for extension of tax hikes, which are stipulated to expire by summer, and further, has appealed not to change the composition of government spending.

Contrary to this, the legislature Republican is expected to press Brown to push deeper cuts in the government program in order to rein in fiscal deficit and further, to cushion private sector.

With such unwarranted turn of events, it would be interesting to watch how Brown will revise the plan, either he will stick to his plan of statewide vote on taxes or would go for a compromise following rise in revenue growth.

As per Controller John Chiang, lest lawmakers and Brown take a common decision, California would run out of money by July. Meanwhile, there is news that a clan of business organization, including the Silicon Valley Leadership Group and local chambers of commerce, has appealed Brown and lawmakers to make a common consensus on what they called a “financial workout plan.”

The clan stated in a letter: ”That’s what California needs: A workout plan where taxpayers agree to extend temporary taxes on the condition that the state government fixes the underlying conditions that got California in trouble”.