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Brown Pledges Honest, Painful Budget For California

SACRAMENTO (AP) -- Gov. Jerry Brown said Monday he will propose a painful but honest budget next week likely relying on deep cuts to state services and an extension of temporary taxes as he tries to prepare Californians for more tough times ahead.

KCBS' Doug Sovern Reports:

On the day he was sworn-in as California's 39th governor, Brown sought in his inaugural address to strike a cooperative tone with lawmakers, asking them to "rise above ideology and partisan interest and find what is required for the good of California."

Democratic and Republican leaders welcomed that approach.

"Today's a day I think when everybody needs to think positively," said Assembly Minority Leader Connie Conway, R-Tulare.

California has faced several years of budget deficits and confronts an estimated $28 billion shortfall through June 2012.

Brown did not addressed reports that he will balance deep spending cuts with a special election to extend temporary tax increases. The Los Angeles Times and The Sacramento Bee, citing unnamed sources, have reported that Brown will propose a special election to extend a variety of temporary tax hikes that are set to expire by July.

California had temporarily raised the state income tax rate by 0.25 percent, increased the fee for licensing vehicles from 0.65 percent to 1.15 percent and hiked the sales tax by 1 percent as part of a February 2009 budget deal cut by Gov. Arnold Schwarzenegger and lawmakers.

The Bee, citing anonymous sources, reported Monday that Brown will propose eliminating local redevelopment agencies, reducing social service benefits and closing some state parks.

Public education is the largest part of the state budget, accounting for roughly 40 percent of general fund spending. Per pupil spending in California is roughly $1,000 less than it was three years ago.

When asked about education funding on Monday, Brown said, "You'll have to wait."

Brown said he would not raise taxes without voter approval, but will need some Republican help to reach the two-thirds legislative vote necessary to place any tax or fee measure on the ballot.

He remained vague Monday in responding to reporters' questions about a possible special election as he left the Sacramento Memorial Auditorium after his inaugural address.

"I'll confer with the legislative leaders, and we'll work something out that makes sense, but we don't have a lot of time and we've gotta cover a lot of ground," he said.

Brown also could try to make changes that voters rejected in 2009, including taking money from voter-approved programs intended for early childhood development and mental health care.

Senate President Pro Tem Darrell Steinberg, D-Sacramento, said Democrats who control both houses of the Legislature will be more willing to make the same cuts former Gov. Arnold Schwarzenegger proposed if they are proposed by Brown.

"The context is different, and I'm looking forward to working with the new governor very closely," Steinberg said.

The newspapers reported that the new governor will seek to shift more tax revenue to local governments in exchange for their taking on more responsibility for services. In exchange, he will revive some Schwarzenegger proposals that failed to gain legislative support, such as restricting Medi-Cal access, diverting low-level offenders to county jails and cutting deeply into higher education.

"Hopefully the Democrats will listen to him more about spending than they did to me," Schwarzenegger said.

In recent years, the state has sought to save money by reducing health care benefits, eliminating dental insurance for low-income adults, reducing in-home services for seniors and the disabled, laying off thousands of teachers in public schools and furloughing state government workers.

"If the budget is going to be balanced, you have no choice: You either have to produce enough money to keep spending like drunken sailors or you have to cut back as if you're almost homeless. And he's talking about doing both," said former Assembly speaker and San Francisco mayor Willie Brown.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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