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Brown’s Budget Plan Takes Shape

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Governor Jerry Brown (AP)

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SACRAMENTO (KCBS) _ Governor-elect Jerry Brown’s first budget proposal will have something for everyone to hate.

He has already warned the public to expect severe cuts in government spending and is laying the groundwork for asking voters to extend increases in the sales tax and vehicle license fee.

Now, insiders said he may also try to repeal enterprise zone tax credits, redevelopment incentives and other business-friendly tax measures.

KCBS’ Doug Sovern Reports:

“The challenge at this point is there are no more gimmicks,” said University of San Francisco politics professor Corey Cook. “It’s roughly an $80 billion budget and about $28 billion out of whack. To get there, you have to fix about a third of the state’s budget. The only options are fixing both sides of the ledger.”

Cook said there’s little evidence those tax incentives actually create jobs, but they’ve been sacrosanct anyway.

“Businesses have always enjoyed the tax credits and it’s been something that politicians have been loath to try to cross them on,” he said.

Cook said Brown is banking that the political capital he earned with his big win in November will help him persuade voters to approve measures they’ve rejected in the past. Brown will be sworn in next Monday and unveil his budget plan the week after that.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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