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The Latest: Governor floats tax increases for road repairs

Posted 8:15 p.m. Tuesday
Updated 8:16 p.m. Tuesday

— The Latest on Gov. Jerry Brown's budget proposal (all times local):

5:10 p.m.

For a third year, California's governor is proposing tax increases to pay for billions of dollars in needed transportation infrastructure repairs and upgrades.

The plan released Tuesday would raise $43 billion over 10 years from several sources, including a new $65 fee on all vehicles, higher gasoline and diesel taxes and more revenue from cap-and-trade fees on polluters.

Gov. Jerry Brown's administration says it wants to prioritize maintenance on existing infrastructure and make major new investments on highways and local roads.

But Brown's plan and others calling for tax increases have repeatedly stalled in the Legislature. Republicans and moderate Democrats have been reluctant to back the higher taxes.

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2:45 p.m.

Republican state lawmakers are optimistic about Gov. Jerry Brown's fiscally restrained budget, while Democrats want more spending on social welfare programs.

Brown is proposing more than $3 billion in cuts as California faces uncertainty about federal funding under the incoming administration of President-elect Donald Trump.

The Democratic governor also warned Tuesday of a looming $1.6 billion budget deficit because tax revenues are growing more slowly than previously forecast.

Republican Sen. Jim Nielsen of Gerber, the ranking Republican on the Senate budget committee, says it's no time for California to "be getting loose with the purse."

Democratic legislative leaders want increased funding for higher education, social services and other state programs.

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11 a.m.

Gov. Jerry Brown has proposed a $122.5 billion budget for California and is warning of a possible $2 billion deficit in the coming fiscal year.

Brown says the budget will be the most difficult California has faced since 2012, as the state deals with declining revenues.

Brown says California has the most regressive tax system in the United States, relying too heavily on the richest few.

The Democratic governor released his spending plan Tuesday amid uncertainty about changes to come from President-elect Donald Trump and the Republican-led U.S. Congress.

Brown's proposal is his opening salvo in six months of spending negotiations with lawmakers.

Democrats who control the Legislature generally have favored more substantial spending on higher education, social services and other state programs than Brown.

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12:01 a.m.

California Gov. Jerry Brown is set to release his opening budget proposal Tuesday, revealing how his administration plans to prepare for possible steep cuts in federal funding for health care and other public services.

The Democratic governor has crafted his spending plan amid tremendous uncertainty about the changes to come from President-elect Donald Trump and the Republican-led U.S. Congress.

The incoming Republican president has pledged to repeal President Barack Obama's health care law, which California has embraced. Trump has also said he will financially punish local governments that impede federal immigration enforcement, as Democratic legislators have vowed to do.

Obama's Affordable Care Act provides about $20 billion to help deliver health care to 5 million Californians.

Brown's January budget is the governor's opening salvo in the six-month spending negotiations to come.

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