California Governor Institutes 'Draconian' Austerity Measure & Budget Cuts in Other States

Jerry Brown, California's governor, made a bold budget move that will hike taxes $12 billion and decrease state spending by $12.5 billion to try to close the $25.4 billion shortfall. Whether the taxes will increase or the spending cuts will deepen depend on a planned June special election. Called a "Draconian budget plan," Gov. Brown said that while the cuts are "painful," every state sector must sacrifice, as he must, "return California to fiscal responsibility..."

Pennsylvania's Budget Plans

Pennsylvania, where I am from, is facing a deficit of only $1.2 billion, much less of a shortfall than California has to deal with. Nevertheless, Pennsylvania will be increasing its spending-not cutting it. However, in the $28 billion state budget plan that the General Assembly approved on Wednesday, Jan. 5, 2011, many needed agencies will be facing cuts of at least 10 percent, but the overall budget is $1 billion less than the original proposal made by former Gov. Rendell.

New Jersey's Budget Plans

Governor Chris Christie of New Jersey, the nation's second richest state, is facing a budget shortfall of $10.5 billion. This is the 10th year in a row that New Jersey has been in so much debt. In a recent announcement on Jan. 4, Christie says that he may propose cutting state employee benefits and the state's Medicaid program to help cover the shortfall in a State of the State address. This cut is on top of last year's municipal aid and school aid cuts, which lowered the budget shortfall by $10.7 billion already.

Texas' Budget Plans

In Texas, a larger budget shortfall is being dealt with to the tune of $15 billion. In a statement made by Texas Comptroller Susan Combs on Jan. 7, it was announced that a shortfall of $4.3 billion may be present in the current fiscal year's budget-something Texas was not expecting. Some of the expected cuts may include $6 million of federal stimulus, and cuts to health care and education programs. However, Governor Rick Perry stated that he is "confident will meet our state's needs... without raising taxes."

Overall, California appears to be the exception to the rule when it comes to raising taxes, although it seems justified when the deficit amount is taken into consideration. California has one of the highest budget deficits in the entire nation, but if the state can look to cutting other programs instead of raising taxes, it may be better off.