January 25, 2017

There have been some wild statements recently that Governor Jerry Brown has proposed increasing some fees and taxes to pay pension contributions.

That's not true. The Governor's budget plan, released January 10, proposes an increase in vehicle registration fees and the gasoline excise tax to help fund a planned $43 billion, 10-year spending increase on transportation programs, including devoting more money to maintenance and road repair. Check out the Transportation section of the "2017-18 Governor's Budget Summary (PDF)" and see for yourself. Any proposals to increase the gas tax and vehicle registration fees have absolutely nothing to do with CalPERS.

The Legislative Analyst's Office takes the same view. In its independent analysis of the Governor's plan, "The 2017-18 Budget: Overview of the Governor's Budget (PDF)", these proposals are evaluated as part of the overall funding for transportation.

The facts are clear. Governor Brown did not propose increasing taxes to pay for pension contributions.