Here are details of the revised state budget Gov. Jerry Brown released on Monday:
Based on a rebounding economy and higher state tax revenue, the revised budget calls for general fund spending to rise above his previous proposal for the 2011-12 fiscal year, from $84.6 billion in January to $88.8 billion today. The revised number still represents a $2.8 billion reduction from the 2010-11 general fund budget.
Total state spending, which includes federal money and revenue dedicated to specific programs, would rise to $132.5 billion, about $5 billion higher than in the current fiscal year.
The projected deficit has fallen from $26.6 billion earlier this year to about $9.6 billion, according to the governor's office. That is due to:
— $11.2 billion in cuts and funding shifts already adopted by the state Legislature and signed into law by the governor.
— $2.2 billion in cuts approved by the Legislature that have not yet been sent to Brown.
— Estimated $6.6 billion growth in tax revenue.
— $2 billion in increased spending, largely on education, because of the higher income levels.
— Eliminates $1 billion Brown had hoped to transfer from Proposition 10 because it is tied up in litigation.
Brown hopes to hold a special election asking voters to extend a series of temporary increases to the sales, personal income and vehicle taxes. Because all the taxes will expire by July 1, Brown hopes the Legislature will temporarily approve the tax increases until a special election could be held, possibly in the fall. The proposed tax solutions are:
— Maintaining an increase from 0.65 percent to 1.15 percent in the vehicle license fee and a 1 percent increase in the state sales tax for another five years. If approved, some of the revenue from the sales tax and vehicle license fees would go to local governments.
— Suspending a temporary increase of 0.25 in the state income tax rate for 2011, but resume the increase for four years starting in 2012.
— Ending a corporate tax break and streamlining the current tax structure by requiring all corporations to pay taxes solely on their share of sales in California, generating $942 million.
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