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Sacramento, CA, United States (AHN) – The impasse over extending taxes continues in California despite a revised budget plan from Gov. Jerry Brown that relies on an unanticipated rise in revenue. Republicans have insisted on an alternative plan that would cut compensation for state workers by 10 percent.

The updated budget takes into account a current-year tax revenue increase of $2.8 billion and a budget year earnings boost of $3.5 billion, for a total adjusted revenue of $6.6 billion.

The windfall, combined with steps already implemented by Brown since taking office, has reduced the state’s deficit from $26.6 billion to $9.6 billion, which consists of a current shortfall of $4.8 billion and another $4.8 billion in the fiscal year starting this July.

Brown’s previous budget plan reduced spending by $12.5 billion and relied on revenue of $12 billion from extending taxes. His new budget cuts spending by $11.2 billion because of an increase in funds for public schools by $3 billion.

Additional cost-cutting measures such as the elimination of 43 boards and commissions, as well as more than 5,000 state jobs, compensates for a revenue package that has failed to attract support from Republicans.

Brown, who assumed office in January having served two terms as governor three decades ago, has dropped his plan to raise the personal income tax. Under his revised plan, Californians will pay $2 billion less in income taxes compared to his initial proposal. However, he is still seeking to extend the sales tax and vehicle license fee for five years through a ballot.

The tax package represents 42 percent of the revised plan, while spending cuts account for 48 percent. Cuts include previously announced measures such as the closure of 70 parks to save $11 million in the first year, a hiring freeze and the halving of the number of state cars and cell phones.

The ballot for the tax extensions must first be approved by two Republicans from the Assembly and two Republicans from the state Senate.

Republicans rejected the governor’s revised plan and accused him of “fund[ing] bigger government.”

“Assembly Republicans showed that we can protect funding for the classroom and law enforcement without raising taxes,” Assembly Minority Leader Connie Conway said in a statement. ” We call upon the governor to stop trying to raise people’s taxes and start working across party lines on a no-tax increase budget compromise.”

State GOP Chair Tom Del Beccaro added, “The bottom line is that Brown’s demand to increase spending while we have a deficit means that he still doesn’t understand that we can no longer spend beyond our means.”

The statemate with Republicans occurred in March when the governor suspended negotiations over what he said were “an ever changing list of collateral demands” in return for support for a special election, such as giving a $1 billion tax break to out-of-state corporations so the companies would bring jobs to California.

The alternative GOP budget plan relies on the higher April revenue to prevent cuts to education and law enforcement. It does not raise taxes and calls on state workers to “do their part” with a 10 percent reduction in pay, benefits and other employee costs, which Republicans say would provide the government with $1.1 billion in savings.

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