Capitol Alert

Gov. Jerry Brown and Democratic legislative leaders announced today that they have reached an agreement on a new majority-vote budget plan.

"We've had some tough discussions, but I can tell you that the Democrats in both the Senate and the Assembly have now joined with the administration and myself and we have a very good plan going forward with the budget," Brown said at a press conference in his office this afternoon.

The proposal, outlined in this post, assumes that the state will bring in an additional $4 billion in revenues in the upcoming fiscal year, based in part on higher-than-expected revenue figures in recent months. If those revenues fail to materialize, steeper cuts to programs including K-12 schools, higher education, public safety programs and In-Home Supportive Services would occur later in the year.

"We have severe trigger cuts that will be triggered and go into effect (without the projected revenues)," Brown said. "And those are real."

Brown vetoed the majority-vote budget that lawmakers approved ahead of the Legislature's June 15 budget deadline, calling the package of spending cuts, funding shifts and one-time fixes "not a balanced solution." Legislators have also lost their pay in the wake of Controller John Chiang's decision that the plan approved earlier this month fails to meet the requirements for pay under the voter-approved initiative allowing the budget to be passed with a majority vote.

The governor, who has been working for months to secure Republican votes needed to hold a statewide election on expiring higher tax rates, said without a deal on his original proposal, leaders will have to "look very seriously" at using the initiative process to qualify a measure to secure future revenues.

Assembly Speaker John A. Pérez said Brown and Democrats "have not wavered in our belief that new revenues are essential" to balance the budget over the long term.

"The conversation has been started and we will keep that conversation going as we move to the ballot next year," Pérez said.

Senate Republican leader Bob Dutton criticized the plan unveiled today as a "hope without change" budget.

"This latest budget is based on the hope that $4 billion in new revenues will miraculously materialize, but does absolutely nothing to change government as usual," he said in a statement.

Read more about the plan here.