Gov. Jerry Brown (D) has received financial support for his November tax initiative from several health care organizations, KQED's "Capital Notes" reports (Myers, "Capital Notes," KQED, 1/23).
Background
In an effort to help close California's estimated $9.2 billion budget deficit for fiscal year 2012-2013, Brown wants voters temporarily to increase the sales tax to 7.75% and income taxes on residents earning more than $250,000 annually.
Brown has estimated that his plan would generate $6.9 billion the first year to help balance the budget. Brown said that if voters reject the ballot measure, deeper state spending cuts would be needed.
Supporters of the tax plan will need to collect 807,615 signatures for the measure to qualify for the November ballot (Nash, Bloomberg, 1/24).
Donation Details
Health care organizations that contributed toward the tax initiative include:
- The California Association of Hospitals and Health Systems, which donated $500,000 ("Capital Notes," KQED, 1/23); and
- Blue Shield of California, which donated $100,000.
Brown recently said other large donations, including one from Kaiser Permanente, will be reported soon (York, "PolitiCal," Los Angeles Times, 1/23).
CAHHS spokesperson Jan Emerson-Shea explained that health care providers have been hurt by Medi-Cal spending cuts. Medi-Cal is California's Medicaid program (Bloomberg, 1/24).
According to reports from the California Secretary of State's office, Brown has received $1.45 million so far for his tax initiative ("Capital Notes," KQED, 1/23).
Editorial Blasts Governor's Tax Plan
A Wall Street Journal editorial argues that Brown's tax initiative "has little to do with economic reality" and "pretend[s] that higher rates will produce more revenue in order to spend more" (Wall Street Journal, 1/22).