(Image Source: The Liberal OC)

 

BY ERIK SHUTE

 

You're watching multisource U.S. video analysis from Newsy

 

Get ready to tighten belts across the Golden State. Governor Jerry Brown is announcing his plan to tackle California's cash crisis.

“Brown’s finance office is putting the final touches on plan that cut stepping in all areas of government. Sources say he wants deep cuts in higher education, impose new restrictions on welfare grants and boost the cost of health care for people who are enrolled in K-12 schools will face cuts, but not as deep.  The governor's office said they are ready for protests today.” (KNTV)

Brown’s plan isn’t a life preserver for the state’s budget woes -- more like a slap back to reality. Fox Business has more on Brown’s strict changes.

“The $28 billion, and Jerry Brown said, believe him or not, he said, ‘I am too old to play games anymore, we have to come up with a serious budget right now that reflects serious reality. There's a lot of people saying, you know, these are terrible, terrible cuts, but we would accept it from Jerry Brown because he's just not as mean as Arnold Schwarzenegger.”

But voters are still bracing for a raid on Californian pocketbooks.  KNBC reports Brown won’t hike taxes -- unless they give him the green light.

“...he ‘s made one thing clear, nearly everyone will feel the pain due to the state's massive deficit.  The governor also wants to cut government staff and state agencies and streamline government.  He will reportedly ask voters to extend temporarily increases to income sales and vehicle taxes.”

Brown’s voter-approved hikes are sweetened by an historic cornerstone in his agenda -- the idea of local realignment.  Capitol Weekly breaks down the plan to give more power to local governments -- but for a price.

“Brown’s political calculus is this: Shift power to the locals, then go to the ballot and ask voters to approve the money to help pay for it. If the locals get behind it the ballot proposal ultimately could have a chance of passing. Local control in return for taxes.”

If voters don’t approve Brown’s local alignment plan- schools may be the ones to feel the burn.  The San Francisco Chronicle talked with California School Administrator Representative Bob Wells who calls out to Cali voters.

"A lot of people are going to portray this as a tax increase, and it's not. It's asking the voters and the taxpayers to leave in place the tax structure that they're working with right now. … If you have been paying those taxes the last few years and if school funding is important to you, then vote yes on the measure.”

Today’s $6 billion gap and a looming $19 billion in cuts needed for next year means the state isn’t out of the hole yet.  But Brown, who was once governor of California in the 70s and 80s -- is back in the saddle, and CNN says he’s attacking this issue with poise.

"The year ahead will demand courage and sacrifice.  Choices have to be made and difficult decisions taken. It is a tough budget for tough times."

The state’s deadline to come back to black is June 30th.  So what do you think?  Can Jerry Brown stage his debt disappearing act in time or will California continue to see the red?
 

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Transcript by Newsy

U.S. News

Brown Plans to Curb California Deficit

January 10, 2011
(3:01)
California Governor Jerry Brown has a plan to balance the state budget as a deep deficit continues to plague the Golden State.
   
TRANSCRIPT

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