Brewer puts state budget hole at $4B, unveils tax increase, budget plans - Business First of Louisville:

oryzacody.wordpress.com
Brewer has talked about a five-point budget plan for but has not officially laid outher details. The Republicab governor sent a budget outline to the Legislaturdon Monday. It includes asking voterse to approvea 1-cent increase to the state’s 5.6 perceng sales tax. She does not want to extenxd the sales tax to currently exemptee servicesand items. A Democratic plan unleashed last week woulr lower the salestax rate, but extende it to various services not already The governor’s budget plan puts the fiscal 2010 deficigt at $4 billion, up from previous estimates of $3 Brewer’s budget also calls for a three-year phase-ouf of the $250 million stater equalization rate property tax.
That tax has been on hiatus, but will come back at the end of the year withourtfurther action. Business and real estatwe groups favor a full repeal of theequalization tax. “While the governor’s budget regarding state equalization repeal is a step our organization cannot accept multiple historic tax increases without requisite spending cuts that approacb what the private sector hasalready endured,” said Tim Arizona president of the Nationakl Association of Industrial and Office Propertiews real estate group. “Now is especially not the time to raiss property taxes withthe Prop.
13 movement We are open, however, to a balloty referral that lets the peopld decide whether they want the sales tax ratew increased along with a future ballotf measure to adjust automaticspending increases.” Lawless warned that bringing back a property tax that hits both homeowners and businesseas could help spur 2010 ballof measures that impose California Proposition 13-stylwe restrictions on property taxation. Brewed said the sales tax increase wouldbe temporary, and she wouldc like to see some reductions down the road to corporatde and business taxes to help attract investmentz to the state.
Antitax advocates and conservativw lawmakers oppose the salese tax increase and want to try to solve the fiscal 2010 budgetg withoutraising taxes. Brewer has promisedc to veto budgets that rely too much on federakl stimulus money and program cuts to balance the The governor’s budget also looks to protect universityy and public health funding via federal stimulux money, and wants voters in 2010 to undo current restriction s that keep the Legislature from cuttinfg voter-mandated spending. Teachers unions and Democrats opposewthat idea.