California unveils plan to plug budget gap
Published:Tuesday | May 15, 2012 | 2:22 PM
California's governor Jerry Brown has unveiled a proposal to tackle the $15.7 billion budget gap of the cash-strapped US state.
Governor Brown says he plans to raise $8.3 billion from cuts, as well as $5.9 billion in tax increases and $2.5 billion from other measures.
Californians are expected to vote in November on an increase in the sales tax as well as an income tax rise on those making more than $250,000 yearly.
Both measures would be temporary and would also increase education spending.
The plan also envisages cutting 5 per cent of payments to state employees, with a four-day week.
Governor Brown also plans to send low-level offenders in state prison to county jails, with an anticipated $1 billion in savings to the state.
