The call for taxes is expected to be paired with a strict spending plan that could rankle the Democrats who dominate the Legislature. Brown warned school officials at a budget forum this month: "Fasten your seatbelt; it's going to be a rough ride."
Details of which programs Brown will propose to cut remain unclear. But in private discussions, he has mentioned paring back the state's welfare program, reducing what doctors and healthcare providers are paid to care for the poor, and trimming funding for the University of California and California State University systems.
Public university students have had to cope in recent years with soaring tuition, furloughed faculty and reduced class offerings. Many programs in the state's safety net for the poor, meanwhile, have already been reduced significantly from years past.
The business tax breaks and subsidies Brown is targeting have received mixed reviews from analysts and economists.
The state's enterprise zone program provides tax credits to companies that hire workers from economically disadvantaged neighborhoods. But some of the tax breaks can be claimed for residents of the state's toniest areas. A 2009 study by the Public Policy Institute of California concluded that, on average, "enterprise zones have no effect on business creation or job growth."
California's 400 redevelopment agencies, meanwhile, take in roughly $5 billion in property taxes that would otherwise go to schools and other parts of government. A Times series this year showed that although many use the funds wisely, there were instances of corruption, questionable spending and poor accountability.
The corporate tax formula that Brown wants to change allows businesses to select how they prefer to be taxed each year. The nonpartisan Legislative Analyst's Office has said the formula should be made mandatory.
shane.goldmacher@latimes.com
