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California Gov. Brown: State Now Faces "$16 Billion Hole"

"We are now facing a $16 billion hole, not the $9 billion we thought in January," California Gov. Jerry Brown said. "This means we will have to go much further and make cuts far greater than I asked for at the beginning of the year. But we can't fill a hole of this magnitude with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety. The plan asks high income earners to pay up to 3 percent more in their income taxes for seven years. It would increase sales taxes by one-fourth of 1 percent for four years."

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