How California’s New Bond Proceeds Will Be Put To Work

The record purchase of $6.5 billion in state bonds during the week of March 23 will allow California to continue, restart or begin construction on hundreds of public works projects, Schwarzenegger administration officials said March 30.

Of the $6.5 billion in bond proceeds – the largest transaction of its kind in the nation’s history — $3.8 billion will be used to address state cash flow needs, one of the functions of the Pooled Money Investment Account in which the bond proceeds are deposited.    Read more »

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Nearly $1 Billion in Budget Cuts Won’t Be Rescinded

Nearly $1 billion in spending cuts that fall hardest on the poor, disabled and home care workers will take effect next year after state officials concluded March 27 there will not be at least $10 billion in federal economic stimulus funds that can be used to staunch the red ink in the state’s general fund.    Read more »

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Schwarzenegger Administration: Federal Money Enough to Offset Public School Budget Cuts

Sacramento — In good news for public schools, federal recovery money for education should be enough to offset $2.4 billion in budget cuts, state Department of Finance officials said March 24.

The budget signed last month reduces state support for public schools by $2.4 billion in the fiscal year that begins July 1.    Read more »

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Fixing California’s Eligibility for $8.3 Billion In Federal Funds

The state Senate unanimously approved legislation March 23 that would make California eligible for $8.3 billion in federal stimulus money for Medi-Cal, the state’s health care program for the poor.

Although California is slated to receive more than $31 billion in federal money, a change in eligibility rules for Medi-Cal made as part of this year’s budget prevents California from qualifying for more than 25 percent of those  federal funds.    Read more »

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California’s Unemployment Rate Now at 10.5%

An indicator that the state budget will likely be even more out of balance than the $8 billion predicted by the Legislative Analyst, California’s unemployment rate rose from 10.1 percent in January to 10.5 percent in February. 

Nonfarm payroll jobs declined by 116,000 during the month. Read the Employment Development Department press release.    Read more »

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Will $1.8 Billion in Taxes and Nearly $1 Billion in Cuts Trigger Off?

Advocates for the poor, disabled and home care workers urged state officials to eliminate $950 million in spending cuts in next year’s budget by concluding that there is at least $10 billion in federal economic stimulus funds that can be used to staunch the red ink in the state’s general fund.    Read more »

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New Budget Already $8 Billion Out of Whack — Legislative Analyst Says

Less than one month after Gov. Arnold Schwarzenegger signed a budget aimed at closing a massive $42 billion gap between revenues and spending commitments, the state’s still deteriorating economy will add another $8 billion to the state’s revenue hole between now and June 30, 2010,  according to the Legislative Analyst. 

The Legislative Analyst’s assessment of the state’s fiscal outlook also says that because several of the key provisions of the recently enacted budget are short term, budget gaps will continue, growing to $12.6 billion in the fiscal year beginning July 1, 2010 and climbing to $26 billion in the fiscal year starting July 1, 2013.    Read more »

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February Cash Collections — $1 Billion Below Estimates

As reported here previously,  State Controller John Chiang’s February cash report shows revenues $1 billion below projections.    Read more »

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California Ineligible for More Than $10 Billion in Federal Stimulus Funds

Of the $31 billion in federal economic stimulus money California could receive over the next three fiscal years, it is ineligible for nearly one-third because of a change made in this year’s budget affecting eligibility for Medi-Cal, the state’s health care program for the poor. 

Were it eligible, the state would pocket $8.3 billion of the more than $10 billion in increased federal Medi-Cal funds available to California, allowing it to reduce general fund costs for the program.    Read more »

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California To Receive $31 Billion In Federal Economic Stimulus

A new report by the Legislative Analyst says that of the $787 billion committed nationwide, California will get over $31 billion over three years to help close budget gaps and increase existing state spending in several areas, including education and health care.

There’s also the potential for billions more in competitive grants, the report says.    Read more »

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