Governor Brown Vetoes Legislation in Order to Help Maintain California's Fiscal Stability


10-10-2015

SACRAMENTO – Moving to maintain the state’s precariously balanced budget, Governor Edmund G. Brown Jr. today announced that he has vetoed a package of bills that would have created new tax credits or expanded existing tax credits.

“Despite strong revenue performance over the past few years, the state’s budget has remained precariously balanced due to unexpected costs and the provision of new services,” Governor Brown said in his veto message. “Given these financial uncertainties, I cannot support providing additional tax credits that will make balancing the state’s budget even more difficult.”

The Governor vetoed the following bills today:

• AB 35 by Assemblymember David S. Chiu (D-San Francisco) – Income taxes: credits: low-income housing: allocation increase. A veto message can be found here.
• AB 88 by Assemblymember Jimmy Gomez (D-Los Angeles) – Sales and use taxes: exemption: energy or water efficient home appliances. A veto message can be found here.
• AB 99 by Assemblymember Henry T. Perea (D-Fresno) – Personal income taxes: income exclusion: mortgage debt forgiveness. A veto message can be found here.
• AB 428 by Assemblymember Adrin Nazarian (D-Sherman Oaks) – Income taxes: credit: seismic retrofits. A veto message can be found here.
• AB 437 by Assemblymember Toni G. Atkins (D-San Diego) – Research and Development: Small Business Grant Program. A veto message can be found here.
• AB 515 by Assemblymember Susan Talamantes Eggman (D-Stockton) – Income taxes: credits: food bank donations. A veto message can be found here.
• AB 931 by Assemblymember Jacqui V. Irwin (D-Thousand Oaks) – Taxation: credit: hiring. A veto message can be found here.
• SB 251 by Senator Richard D. Roth (D-Riverside) – Disability access: civil rights: income tax credit. A veto message can be found here.
• SB 377 by Senator Jim Beall (D-San Jose) – Income taxes: insurance taxes: credits: low-income housing: sale of credit. A veto message can be found here.

When Governor Brown took office in 2011, the state faced a massive $26.6 billion budget deficit and estimated annual shortfalls of roughly $20 billion. Since then, the state has eliminated these deficits with billions of dollars in cuts, an improving economy and new temporary revenue approved by California voters. Last November, voters also approved Proposition 2 to establish a Rainy Day Fund and the state is now saving billions of dollars to help prepare for the next economic downturn.

For full text of the bills, visit: http://leginfo.legislature.ca.gov

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