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State Revenues Still Crashing
The farther we get from the 2011-12 budget passed by the Legislature and signed by Gov. Jerry Brown seven weeks ago, the more it looks like the script for a fantasy movie by the previous governor. The latest, from the Bee: “Gov. Jerry Brown‘s Department of Finance said Tuesday that California was $541 million shy of its July revenue forecast, a total similar to one released last week by state Controller John Chiang. “School officials grew nervous last week because the state budget signed by Brown requires K-12 districts to absorb cuts if the state falls $4 billion shy of revenue expectations for the fiscal year. The budget also would impose cuts to higher education, social services and public safety programs.“ So Brown, who in his inaugural speech promised an end to “smoke an mirrors” budgeting, resorted to smoke and mirrors for his own budget. Are we surprised, class? The Bee continued: “Finance officials, in a department bulletin, cautioned against early concern. They suggested that most of the higher revenues would come on the back end of the fiscal year, from December through June. And they said forecasts by the Legislative Analyst’s Office and Department of Finance in November and December would determine whether the “trigger” cuts are necessary.” Except the overall U.S. economy is slamming into another recession. Some in the Brown regime remain stuck in the fantasy script. The reality is that not only will the “trigger” cuts be made, but even more cuts will have to be made come January. Also, the governor and Legislature are doing nothing to promote jobs creation in California. They’re not broadening the tax base, but narrowing it. They need to cut taxes, not increase them, and to sharply cut regulations. For a start, Brown could suspend AB 32, the jobs-killing global-warming bill. That would signal that he’s concerned at least a little about the taxpayers, instead of exclusively concerned about the tax-eaters and political busybodies. There is no escaping decades of spendthrift policies at the federal, state and local levels. There had to be a day of reckoning. This is it. Aug. 17, 2011
Tags: Arnold Schwarzenegger, California budget, Jerry Brown, John Seiler Comments(5) |
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May 23, 2012
Day of reckoning indeed! I’m just wondering how many voters are as angry as I am in this state and want to see some complete change in how this state is managed?
Barb, LIberals don’t get angry. They just keep electing the same bunch of numbskulls.
Well, I’m certainly not of the liberal mind nor can I say ever have been! I’m just thinking there has to more who are tax-paying, law-abiding, God-fearing citizens like myself who are just ready for a fight! Or are they just leaving in droves outside of the CA borders? Oh and one more thing, because of this redistricting fiasco and more Democrats become elected (alledgedly) then we’re looking at increased taxes! I’m just stinking mad!
Barb, I never understood why fearing God is considered a virtue.
The article states the US economy is slamming against another recession. The US government not only keeps the books, they cook the books as well.
In figuring GDP you have to adjust for inflation. The greater the inflation the lower the GDP. The lower the inflation the higher the GDP. Clearly the incentive is for government to understate inflation and overstate GDP. This way they can falsely boast of the terrific job they are doing on the economy.
I suspect that this never before seen rate of money creation at the Fed has generated substantially more inflation than acknowledged by the Feds. There is a reason this “recovery” does not feel, act or smell like a recovery. Seems to me it is just more inflation.
I love University of California (UC) having been a student and lecturer. But today I am concerned that at times I do not recognize the UC I love. Like so many Alumni, Donors, Legislators, and Californians I am deeply disappointed by the pervasive failures of UC senior management and regents.
Californians suffers from 19% unemployment (includes those working part time, and those no longer searching), mortgage defaults, loss of unemployment benefits. And those who still have jobs are working longer for less. Chancellor/Faculty wages must reflect California’s ability to pay, not what others are paid.
UC Berkeley (Cal) planned pay raises for generously paid Faculty is arrogance. UC Berkeley (ranked # 70 Forbes) tuition increases exceed national average rate of increase. Chancellor Birgeneau’s leadership molded Cal into the most expensive public university in the USA.
Can we do better with a spirit of shared sacrifices by Faculty, Provosts, and Chancellors?
(17,000 earn more than $100,000)
No furloughs.
18 percent decrease UCOP salaries, $50 million budget cut.
18 percent prune chancellors’ salaries.
15 percent trim tenured faculty salaries, increase teaching.
10 percent non-tenured faculty pay decrease, increase research, teaching.
100% elimination of Academic Senate, Academic Council budgets.
There is no question the necessary realignments with reality will be painful.
UC Board of Regents Chair Sherry Lansing can bridge the public trust gap with reassurances salaries reflect depressed California wages. With UC’s shared financial sacrifices, the sky above UC will not fall.
Opinion, email UC Board of Regents marsha.kelman@ucop.edu