Democrats Offer Their Plan to Close the Budget Gap. Like the Governor, $4.9 Billion in School Cuts

Democratic lawmakers unveiled a plan June 17 of over $11 billion in cuts — $4.9 billion of them imposed on public schools — to close a nearly $24 billion hole in the budget for the fiscal year beginning July 1.

Even though it generates no savings, Democrats also would suspend the requirement students pass an exit exam to graduate from high school.    Read more »

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Bad Budget Problems Made Worse

There are lots of thoughtful – and disturbing – observations by the Legislative Analyst about Gov. Arnold Schwarzenegger’s revised budget plan, which seeks to close a $21 billion gap between spending commitments and revenues.

In a report issued May 21, the Legislative Analyst says that while the GOP governor’s estimate of a $21 billion problem is “reasonable,” it is actually $3 billion higher.    Read more »

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Selling Surplus Property Won’t Help the State’s General Fund Very Much

 Depending on the structure of Governor Arnold Schwarzenegger’s proposed sales of such state properties as San Quentin and various office buildings, any cash collected by the state can’t be used to balance the budget.

Under the terms of Proposition 60A, approved by voters in November 2004, proceeds from the sale of any state surplus property can only be used to pay the interest on $15 billion in budget-balancing bonds sought by the GOP governor and approved by voters in March of the same year.    Read more »

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Budget Conference Committee to Convene

A special two-house conference committee will begin meeting May 21 to stitch together a revised budget designed to erase a gap between spending commitments and revenues of at least $15.4 billion and as much as $21.3 billion, if several budget-related ballot measures fail in the May 19 special election.

Assembly Speaker Karen Bass, a Los Angeles Democrat, has already alerted representatives from the Schwarzenegger administration of the committee’s meeting schedule.    Read more »

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What the Next Budget is Actually Going to Contain

(Editor’s Note: A common complaint about media coverage of the state budget, the most important annual public policy action taken by lawmakers and the governor, is that far more attention is paid to what the governor proposes than what actually is enacted.

Governor Arnold Schwarzenegger’s revised budget seeks to close a gap between revenues of $15.4 billion, which climbs to $21.3 billion if the budget-related measures on the May 19 special election ballot fail.    Read more »

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First New Oil Drilling in State Waters in 40 Years Part of Governor’s Revised Budget Plan

SACRAMENTO — Among the proposals in the Capital A austere revised budget Governor Arnold Schwarzenegger unveiled May 14 is collecting $100 million by allowing new oil drilling in state waters off the California coast for the first time in 40 years.

Awarding the lease would nullify a January ruling by the three-person State Lands Commission, which regulates drilling in the first three miles off the California coast.    Read more »

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A Sorrowful Symmetry

On May 11, Gov. Arnold Schwarzenegger sent a letter to legislative leaders saying that, rather than wait until after the results of the May 19 special election he would present his revised budget plan on May 14. 

There is no doubt that on May 14, the GOP governor will unveil a litany of horrendously awful actions to close what he now estimates to be a budget gap for the fiscal year beginning July 1 of $15.4 billion.    Read more »

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It’s Official: April Tax Collections $1.8 Billion Short

April revenue collections fell $1.8 billion below estimates, worsening the state’s budget cash shortfall by a like amount.

As of April 30, the state received $7,752,965 in personal income taxes – well short of the $8.9 billion expectation used to create the budget signed in February.

Corporate tax collections were expected to be $2.3 billion for the month.    Read more »

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Tax Revenue for April Likely To Be At Least $1.5 Billion Short of Esimates

With only one day left in April, the state is well short of its revenue collection predictions for the month, likely worsening the state’s already grim budget picture by more than $1.5 billion.

Income tax collections for the month, through April 29, totaled $7.7 billion, $1.2 billion below the $8.9 billion expectation the budget signed February 20 is premised on.    Read more »

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Uh-Oh

There’d better be a lot of misplaced or unopened envelopes at the Franchise Tax Board, if California hopes to reach the $8.9 billion in personal income taxes it expects to collect by the end of the month.

 While Monday April 27 saw $1.4 billion added to the tally over the transom over the weekend, Tuesday April 28 saw just $227,525 in additional revenue.    Read more »

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