Don’t Panic About News Stories on State Cash Flows

Byuclafaculty

You may see some headlines about revenues falling short of expectations for the first six months of the fiscal year, based on the state controller’s latest statement.  The legislature assumed phantom money in June so it could pass a budget more or less on time.  Now, however, all of the major taxes are performing within a margin of error relative to estimates made in connection with the latest budget proposal.  Forecasting is not an exact science, even when done without phantoms. Spending is also running about as now forecast.

The real problem the state faces is that revenues are short of last year’s total due to the expiration of the temporary tax increases.  The drop for the first half of the year is over $4 billion relative to the same time period this year.  But, of course, the tax expirations were known when the estimates were made.  So that drop is not a surprise – but it is a problem.
The actual report of the state controller is at http://sco.ca.gov/Files-ARD/CASH/fy1112_dec.pdf
There are other things to be scared of:

Similar Posts

|

Report: Affordable Public Higher Education is Possible Today

Byuclafaculty

A report this week from Reclaim California Higher Education (a coalition of faculty and student groups) makes the case that affordable (even free) higher education is within reach for California. The privatization experiment has failed. The harm to a generation of hard-working, high-aiming young people is proven. It’s time to return to what works: the proven Master Plan for higher education in California. California, with its own resources, can afford to restore top-quality, accessible, affordable college and university opportunity to every qualified student. In fact, Californians can afford nothing less. You can read a summary and download the entire report…

| |

Jerry Brown Suggests Master Plan is Dated

Byuclafaculty

Our previous post covered the Jan. 22 meeting of the Regents’ Committee on Educational Policy.  As noted, there was discussion of the 1960 Master Plan for Higher Education, considered a major accomplishment of Brown’s father when he was governor. Below is a link to Brown’s comments in which he suggested the Plan was now dated.  [youtube http://www.youtube.com/watch?v=3RmjI4gVync?feature=player_detailpage]

| | | | | | | | |

Tradition!

Byuclafaculty

The Legislative Analyst’s Office (LAO) has issued a report on UC and CSU funding.  LAO is usually viewed as a neutral agency.  But it is a component of the legislature.  So it tends to favor approaches that add to legislative control as opposed to, say, gubernatorial control.  This report is no exception. LAO seems to want to return to what it terms the “traditional” approach to funding, but with bells and whistles added to monitor legislative goals.  The traditional approach seems to be one focused on undergraduate enrollment.  But in fact the tradition – such as it is – has…

|

7 Wasn’t So Lucky

Byuclafaculty

The cash statement from the California state controller for the first seven months of fiscal year 2013-14 is out.  Revenues are up about 1% from last year at this time.  That gain is not very good.  However, it may be largely due to an aberration last fiscal year when there was a surge of personal income tax revenue in January 2013.  The surge seemed to have something to do with antics back then in Washington over fiscal cliffs, etc., which might have resulted in some tax changes (but didn’t).  The current DC crisis de jour is the debt ceiling, but…

| | | | | |

The Resurrection?

Byuclafaculty

[More in our Regents coverage.  See earlier posts.]  The Regents spent some time on the old Master Plan for Higher Ed.  There was discussion, according to news reports, among representatives of UC, CSU, and the community colleges on better coordination. …“This report shines an important light on the need to have a central body whose sole focus is guiding the Legislature, governor and our three higher education segments as we plan and build for the future,” (Assembly speaker John Pérez) said. Full story at http://www.latimes.com/local/lanow/la-me-ln-college-reports-20140123,0,5215408.story Um, does no one remember  CPEC, which still exists in ghostly form as a website…