Calif. budget deal leaves taxes, reforms to voters

By JULIET WILLIAMS | June 29, 2011 | 4:44 PM EDT

SACRAMENTO, Calif. (AP) — As Gov. Jerry Brown and other Democrats celebrate their rare on-time budget, unions and anti-tax groups already are gearing up for a fight at the ballot box over tax increases and government reforms.

In true California style, it will be up to voters to decide the way to address the state's ongoing budget mess.

Brown had hoped to ask voters this year to extend increases in the sales, vehicle and income taxes but failed to get Republican support.

He says he hopes to resurrect the issue, but his union allies see an opportunity to move on to tax proposals they think will be more popular with voters.

The California Federation of Teachers, for example, is campaigning for a 1 percent income tax hike on the wealthy.