"In California, New Governor Faces Budget Woes"

STEVE INSKEEP, Host:

Today, California's new Governor Jerry Brown unveils a new state budget. By necessity it's expected to include pain. The state is facing a deficit that could be as high as $28 billion. That's for one state. We're looking at Governor Brown this morning as part of our series on some of the challenges facing the nation's new governors. John Myers of member station KQED reports that Brown will not have much time to solve the state's budget crisis.

JOHN MYERS: Jerry Brown's inaugural speech last week began with a reminder of three big promises he made during his campaign for governor.

JERRY BROWN: No more smoke and mirrors on the budget. No empty promises. Second, no new taxes unless the people vote for them. And third, return, as much as possible, decisions and authority to cities and counties and schools.

MYERS: He's also poised to launch an ambitious and complex effort to transfer power to local governments over services they provide, but ones the state controls and pays for. Brown says he's under no illusions about the battles that kind of change may spark.

BROWN: Government, state and local, is wired together in a particular way. And as we rewire it, there will be people who object because power gets shifted, funds move in one direction rather than another.

MYERS: Those income, sales, and car taxes are worth about $8 billion dollars. And education advocates are already preparing a statewide campaign. Bob Wells is with the Association of California School Administrators.

BOB WELLS: We look forward to being part of a coalition that takes the message to voters that we need great schools in California. And you do have to pay for it.

MYERS: But the voters can't consider the issue if the state legislature doesn't place the question on the ballot. And that means a handful of Republican legislators have to go along with Governor Brown. So far, they seem dead set against it. Connie Conway, the Republican leader of the California State Assembly, says voters rejected those same taxes two years ago.

CONNIE CONWAY: And I think they have spoken loud and clear. Quit trying to tax me more. I've told you once, I've told you twice, are you really going to make me tell you that a third time?

MYERS: And nothing about either the choices or the problems facing California seems new. While most states across the nation face budget gaps, their dilemmas can largely be traced to the recession. But even when California's economy was strong and unemployment was low, the state was running in the red. And to make matters even worse: just one month after last October's latest budget ever came news the state's deficit was already back.

MAC TAYLOR: People probably want to know is well, you fixed it. You balanced your budget. Why are you coming back again and saying there's another problem?

MYERS: Mac Taylor leads the nonpartisan Legislative Analyst's Office, which advises the state legislature on the budget. Taylor says many of California's recent budgets have been balanced with temporary, stopgap measures. Now, the state's lawmakers have little choice but to face the problem head on.

TAYLOR: They should look at all programs. You can't solve this budget problem by just being a little more efficient. You're going to have to make decisions that there are certain services we can no longer afford, at this time or within the near future.

MYERS: For NPR News, I'm John Myers, in Sacramento.