California Faces $16B Shortfall

    Calif. Gov. Jerry Brown speaks at the Bay Area Council Outlook Conference in San Jose, Calif., Thursday, May 3, 2012.  The California Republican Party and anti-tax groups kicked off a campaign Thursday against Brown's proposed tax hikes before the initiative has even qualified for the November ballot. (AP Photo/Paul Sakuma)

    Paul Sakuma / AP Photo

    Taxes will have to increase or cuts will be made to fill the $16 billion hole in California’s budget, Gov. Jerry Brown said Saturday. “This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year,” Brown said, as the state struggles to make up shortfalls in taxed income. In the online video, the governor appealed directly to the state’s taxpayers, saying that “we can’t fill this hole with cuts alone without doing severe damage to our schools.” Republican state lawmakers argued against the governor’s plan, saying that the state would be better served by leaving taxpayers alone and allowing the economy to grow.

    Read it at The Associated Press