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The state has so far managed to avoid handing out registered warrants (IOUs) instead of making payments in cash. As you will recall, a year ago there were such IOUs issued. Part of the way the state has conserved cash is by not having a budget, so that certain payments could not be legally made. And part has been by deferring payments to various entities at other levels of government that it normally would make. Those entities then have to borrow as best they can or use up reserves to operate. Among the programs to which the state has deferred…

Excerpt from Inside Higher Ed: Under the (budget) proposal, the state would rely upon a combination of general funds and federal stimulus dollars to prop up the University of California and California State University. While Schwarzenegger had proposed $305 million in restored recurring dollars for each system, the budget deal would give $199 million in recurring dollars and rely on $106 million in one-time federal stimulus funds to make up the difference, university analysts said. “Our hope going forward is we could make that $106 million a permanent increase to our base, but in a fiscally challenged year like this…

There is now an official document about the proposed state budget available at: http://www.senate.ca.gov/ftp/SEN/COMMITTEE/STANDING/BFR/_home/2010conf/ConfAgenda10610.pdf from the state Senate Committee on Budget and Fiscal Review. There is also a preliminary write up about this proposal at: http://blogs.sacbee.com/capitolalertlatest/2010/10/budget-details-released.html It is apparent there is a lot of deferral into next year and assumed money from the feds that may not arrive. There is a pension proposal which appears to be CalPERS-only, i.e., not UC. And there is a rainy day fund proposition to be put on the ballot in 2012. There is some additional money for UC and CSU which is said to…