Patt Morrison for January 18, 2011

Could Jerry Brown’s budget axe one of the state’s only successful job creation programs?

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California Governor Jerry Brown announced a balanced state budget that cuts spending by $12.5 billion and includes an eight to ten percent cut in take home pay for state employees and proposes a 'vast and historic' restructuring of government operations

Governor Jerry Brown is being accused of dumping California’s $17.2 billion deficit on California’s cities and counties. Mayors and county leaders are biting their nails over what the outcome will be of the governor’s shift of costs to counties coupled with his cut of social services funding. Brown plans to shut 398 active redevelopment agencies, which provide 304,000 jobs annually, in order to gain control over the $5 billion in property taxes that the local entities currently get. Tax incentives for businesses like rewards for job creation will be eliminated. A 1% increase in sales tax and a 1% increase in vehicle license fees will be extended. In Los Angeles, welfare benefits for an expected 37,000 families will be cut. With less jobs, more taxes, and less safety net, how are cities and counties—and their citizens—going to cope?

Guests:

Rick Cole, City Manager for the City of Ventura; former mayor of Pasadena and former city manager of Azusa

Chris McKenzie, executive director of the League of California Cities


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