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Analysis: California's budget sidelines Brown, Eyes Pension

SAN FRANCISCO (Reuters) - California Governor Jerry Brown is Nearly halfway to closing a state budget gap of Nearly $ 27 Billion, But The state&&9;s partisan divide has Derailed His original plan for plugging The Remainder Of The shortfall and it&&9;s not clear What Will take ITS place .

May an answer, however, START WITH TAKING ON public pensions As The 72-year-old Democrat, now looking to a May deadline for a revised budget plan, tries to tackle a year after That Was stumbling block in Budget Talk With Republican Lawmakers and has Become a Serious Concern Among Voters.

What is clear Is That critical budget talks Between Brown and Republicans are Off Until Further notice and Voters Will not Be Going to the polls in June to take up a measure urging That He Had Been Would Have extended temporary income-tax increaser due to expire this year .

He Called a halt to talks on Friday, Blaming Republicans for driving Them Into a ditch With DEMANDS That would "materially" any semblance of Undermine a balanced budget. "

State Senate Republican Leader Bob Dutton shot back on Thursday, Saying hard feelings HAD poisoned talks.

Dutton Has Said That He Had Been one point Called Into the governor&&9;s office, where "I Was yelled at More Than I Was talked to, and Mostly by Mrs.. Brown, Not Even Governor Brown."

The result Is That Brown&&9;s plan to fill about Half the $ 27 one billion budget hole to Be With tax extensions by Voters voted it in a special June election Will not Get The Needed Support Of A Handful Of Republicans.

"The June ballot is dead," Said Larry Gerston, A Political scientist at San Jose State University."They&&9;ve run out of time."

BOARD CHANGES

Brown on Thursday released a plan to exchange Aimed at making public pensions.Some elements of icts That Would tackle stores Critics, notably Republicans In The Legislature, say fuel Unsustainable dépenses retirement.

A statement from Brown&&9;s Office Said He Is Also Developing Proposals for a cap on pension benefits and for "hybrid" retirement plans from traditional pension That Are defined-contribution and share plans similar to private-sector 401 (k) s.

Both are ideas and Republicans Have Suggested That a Republican lawmaker and a training aid to train Brown&&9;s Predecessor Republican Arnold Schwarzenegger are considering putting in ballot initiatives to Voters flat irons for hair.

"Brown intende to Introduce thesis reformed pension With or Without Republican support," the statement Said, Clearly Trying to portray Brown as on top of year end Nationally Associated with Republicans, followings Their battles with groups employed in Wisconsin and Other States.

It Could Be aussi Brown&&9;s way of Extending olive branch to year Republican Lawmakers, Who enjoy a strong hand is public pensions, Gerston Said: "He&&9;s Showing His Hand to Republicans and Saying &&9;What Will You Will give me?"

Explicitly by Embracing the pension issue, Brown could "boost state control of the Broad Budget Debate With A topic resonating With vote. THEY are seeing local public services have cut Officials scramble to pay for rising retirement Costs of Government Employees Covered by local pension funds gold Through the California Public Employees&&9; Retirement System.

Costa Mesa, California, for instance, garnered national attention last month When A city worker Committed suicide after learning he sacked Might Be in mass lay-offs. Costa Mesa Officials HAD Nearly Decided to halve the City&&9;s work force to free up funds for Pension Costs.Thesis run about $ 15 million in a $ 93 million budget and May Reach $ 25 million over-the Next Five Years, Said City Councilman Jim Righeimer.

Recently released survey results By The Public Policy Institute of California showed 57 percent of public pension Likely Voters Saying Should Be reined in to help balance the budget The State. By contrast, 46 percent of Likely Voters Favor a tax measure, down eight points from January Percentage.

"The Public Seems To Have Become increasingly aware thats the 800-pound gorilla in The Budget Debate Is the cost of public employee pensions," Said Steven Frates, research director at The Davenport Institute at Pepperdine University&&9;s School of Public Policy.

(Editing by Eric Walsh)

Analysis: California&&9;s budget sidelines Brown, Eyes Pension

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