The Madeleine Brand Show for February 28, 2012

Governor Brown's budget bets big on expected capital gains taxes

California Budget

Rich Pedroncelli/AP

Gov. Jerry Brown discusses the cuts he has already made to help reduce the state's budget deficit by more than half as he unveiled his proposed 2012 billion state budget at a Capitol news conference in Sacramento, Calif.

Governor Jerry Brown's new budget proposal for the state is built on the assumption that Californians will report lots of capital gains when they file their taxes in April. The governor expects that taxes from those gains will fill budget holes, but now there's a big question about some of the Governor's projections.

The state's legislative analyst says the governor is being too optimistic. California's tax revenues will fall $6.5 billion short of Gov. Jerry Brown's prediction, even with an expected boost from Facebook's initial public stock offering, and if voters approve the governor's proposed tax initiative later this year, according to a forecast released Monday.


John Myers, Sacramento bureau chief for KQED and the California Report.

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