Our View: Brown's plan undermines plea for tax hikes

The revised state budget for the 2011-12 fiscal year released Monday by Gov. Jerry Brown appears to undermine his frantic demand for hefty tax increases. Nevertheless, he insists the tax hikes are necessary to balance the budget in the coming four years.

However, the governor also concedes the state will take in about $6.6 billion more in taxes over the next 13 months than anticipated. It's not entirely clear why the state's normally too-optimistic revenue predictions underestimated reality. In recent years, the state often expected far more in tax revenue than it received. Perhaps California's economy is recovering faster than economic indicators would suggest, although the statewide unemployment rate persists at 12 percent.

The bottom line is that even Brown, who adamantly insists taxpayers must shoulder additional tax burdens for five more years, now concedes there is less need than when he proposed the tax extensions in January. He now proposes only four years of income tax increases rather than five, along with five years of higher sales and vehicle taxes.

As we understand it, his latest plan would impose the taxes if the Legislature agrees by a two-thirds vote. In a conference call with the governor, it was unclear whether the taxes would be collected before voters ratify them or repeal them.

Meanwhile, Brown says public schools stand to receive nearly half of the new-found $6.6 billion, something dictated by the state constitution. Public safety funding also will receive more than Brown proposed in January. He assumes the revenue uptick will continue into the coming fiscal year.

The added money for schools and public safety is likely to undermine campaigns by Brown and public employee unions to increase taxes, portraying teachers and police as victims of the budget deficit. We don't think the public was swayed by that scare tactic, and now should be even less impressed.

Budget cuts enacted in March have reduced budget deficits for the next four years by more than half, according to the revised spending plan. The governor nevertheless insisted Monday more tax increases are necessary. He called on Republican legislators to provide the added votes needed to approve his tax hikes.

We remind Republican legislators that as recently as January Brown suggested there was no more room to cut. But five months later he now proposes eliminating 5,500 state jobs and 43 state commissions. We wonder how much more could have been saved if those economies had been put in place in January. We wonder how much more spending can be corralled beyond that.

Brown is calling for a 1-percent sales tax extension and the 0.5-percent vehicle license fee extension, beginning after June, when the current temporary increased rates expire, and a 0.25-percent income tax surcharge be delayed until 2012 and continue to 2016.

Taxpayers should be insulted that, even as the governor proposes they pay more than $50 billion in new taxes over the coming five years, he simultaneously proposes increasing spending. Republican leaders estimate this would raise spending 31 percent over the five years.

Brown should look for more ways to hold down spending, not new ways to spend more. It is the height of irresponsibility to plan for more spending when the budget remains, by Brown's estimate, $10.8 billion in the red.

"With $6.6 billion in new revenues, Republicans are right — we don't need, and it's ridiculous to ask voters for, five years of new taxes," Republican Senate Leader Bob Dutton of Rancho Cucamonga said in a statement after the governor spoke.

We agree.