SACRAMENTO-State infrastructure, the schools, pensions and other budget issues require more budget cuts and an extension of taxes this year, said Gov. Edmund Brown Jr. in his 2012 State of the State speech Wednesday. He said during the speech that the 2010 deficit of $20 billion was reduced to $5 billion in 2011, but there’s still a long way to go, as California still struggles to recover from one million jobs lost during the recession.

However, he said there are still high points in the state, including a massive influx of renewable energy projects and jobs, and the planned $5.5 billion high-speed rail system connecting the north and south of the state. The 800-mile project by the California High-Speed Rail Authority is deemed the largest infrastructure project in the country.

Brown said this year he is again proposing unpopular budget cuts and temporary taxes. “In a world still reeling from the near collapse of the financial system, it makes no sense to spend more than we have,” he said during his speech. “The financial downgrading of the United States, as well as of several governments in Europe, should be warning enough. It is said that the road to hell is paved with good intentions and digging ourselves into a deep financial hole—to do good—is a bad idea. In this time of uncertainty, prudence and paying down debt is the best policy. With enough time, we can and should devise more permanent tax reform, but for now we should finish the job of bringing spending into balance with revenues.”

California, home to major corporations such as Apple, Intel, Facebook and Hewlett-Packard, should continue to dream big, the governor said. He said the state is within weeks of a revised business plan that will allow initial construction of the $5.5 billion high-speed rail plan “before the year is out.” Pres. Barack Obama has supported the plan and provided a majority of the funds for the first phase.

“It is now your decision to evaluate the plan and decide what action to take,” Brown said. “Without any hesitation, I urge your approval. If you believe that California will continue to grow, as I do, and that millions more people will be living in our state, this is a wise investment. Building new runways and expanding our airports and highways is the only alternative.”

The state is also well-known for its support of green technology, and is attracting billions of dollars in clean tech venture capital investments, the governor said. “In 2011, almost 40% of such investments were made here,” he said. “In the past two years, California has permitted more than 16,000 megawatts of solar, wind and geothermal energy projects.”

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Brown Says Unpopular Cuts, Taxes Needed

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