California Gov. Jerry Brown is considering introducing a ballot initiative that would allow voters to decide in November if they want to have higher rates of income, sales and vehicle taxes, according to an anonymous source speaking to the Sacramento Bee.

Because the measure would likely be packaged with a series of regulatory and spending reforms, the source, it seems, has immediately given Brown fresh leverage in the battle between Republicans and Democrats to close a $26.6 billion deficit. A November initiative would likely be brought on by the coalition of groups who support Brown's budget plan. It would give him the chance to dictate what those reforms would look like.

He needs to get support from at least two Republicans in each chamber of the Legislature to put a ballot measure in front of voters in June, which is Brown's Plan A. But those votes have yet to materialize because of strong opposition to keep high taxes in place.
Brown also has the option of trying to place a measure on the June ballot without any Republican support, but such a move could face legal challenges.

The five Republicans who have been willing to negotiate with Brown want more and wider reforms, including to the public employee pension system. A November measure would take the Republicans out of the picture. Floating around this plan B could easily be a ploy by Brown to get the upperhand in negotiations, forcing them to compromise more than they would like.

"This drives home to Republican legislators that if they want to have an impact on the budget, they better move now or forever hold their peace," said John Pitney, Jr., an expert on California politics at Claremont McKenna College.

If it in fact turns out be an option Brown goes with, there are significant issues that will have to be answered about a November measure.

A June election would come before the taxes expire on July 1. After July 1, any ballot measure would likely be one to straight-up increase taxes. Brown's preference is clearly to hold an election in June.

"Whether you call it increases or extensions, voters basically know what's being talked about," Pitney said. "The real risk is public opinion and the economy might shift over the summer. His current level of support might not be there in the fall."

The fiscal year starts in July, so if voters do approve of a higher sales tax, the state would lose out on five months of extra revenue. The time gap also would likely mean the state would somehow have to pass a balanced budget before June 15 that accounted for the lack of $11 billion in extra tax revenues.

Reach deputy editor Paresh Dave here. Follow him on Twitter: @peard33.