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Lawmakers To Take Up Second Half Of Budget Deficit

SACRAMENTO (AP) — With half the state budget gap resolved, California lawmakers saved the toughest decisions for this week as they decide on possible tax extensions and whether to eliminate local redevelopment agencies.

Gov. Jerry Brown wants lawmakers to call a special election June 7 so voters can decide whether to extend increases in the sales, personal income and vehicle taxes enacted two years ago. He also has proposed deep spending cuts to close the nearly $27 billion shortfall.

Those cuts account for most of the $14 billion lawmakers shaved off the deficit last week.

No GOP lawmakers have publicly supported Brown's plan, but the governor is putting his hopes on a group of five Republican senators who say they are willing to compromise in exchange for pension reforms and a spending cap.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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