Brown to Seek More Automatic Spending Cuts If Tax Increase Fails
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California Governor Jerry Brown will propose a second round of automatic spending cuts that would be triggered if voters reject his proposal to temporarily increase income and sales taxes.
Brown said he’ll include projected revenue from the tax increase in the budget he’ll propose next month for the fiscal year that begins July 1, even though voters won’t be able to decide on the higher levies until November. That means if voters say no, it would blow a bigger hole in a budget already facing a $13 billion deficit. Automatic trigger cuts would be needed to eliminate that shortfall, Brown said.