governor

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Close But No Tobacco Tax

Byuclafaculty

The proposed tobacco tax was narrowly defeated, 49.8% to 50.2% in yesterday’s voting.  As a prior post on this blog noted, the tax would not have gone into the general fund and thus would not have directly aided the UC budget. However, defeat of the tax – as also noted in the prior post – could be taken as an omen of resistance to tax hikes more generally, and therefore not a good sign for the prospect of the governor’s proposed tax initiative for November, which would go into the general fund. Yes, there was heavy anti-tobacco tax advertising by…

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Psychic Income

Byuclafaculty

Old time faculty who remember UC during Jerry Brown’s earlier terms as governor will get nervous when he talks about “psychic income.” Jerry Brown on pay cut: ‘I derive a lot of psychic income’ Don’t expect Gov. Jerry Brown to lose much sleep over the Citizen Compensation Commission’s decision to slash his salary by $8,699.  “I’d run for governor whether it was a paid job or not,” he said today. “I derive a lot of psychic income.” The seven-member panel, which sets pay levels for legislators and constitutional officers, voted 5-1 today to reduce pay for the elected officials by…

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The UC Budget in the May Revise: Allusion Leads to Illusion

Byuclafaculty

The Legislative Analyst has released a summary of its recommendations regarding UC and CSU reflecting the governor’s May Revise budget proposal.  Below, in italics are excerpts related to pension funding for UC. As noted in prior blog posts, in January, the governor designated a sum of $90 million which he said could be used (or not) for UC pension funding.  The problem with that approach is that UC has always been free to allocate what it gets from the state for the pension.  By alluding to use for the pension, the governor triggered a recommendation from the Leg Analyst that…

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Concerns Over Proposed Cal Grants Cuts in May Revise Budget

Byuclafaculty

Cal Grant program faces cuts in governor’s budget (excerpts) Wyatt Buchanan, San Francisco Chronicle, May 25, 2012 Gov. Jerry Brown is proposing to cut a state program that helps thousands of low- and middle-income California university students pay for tuition and other costs.  Under Brown’s revised budget plan, thousands of California college students who start their education in fall of 2013 would either be unable to qualify for a Cal Grant or would receive a much smaller grant than if they had applied this year.  Currently, students who qualify and attend either the University of California or California State University…

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Hobgoblin Pensions

Byuclafaculty

Yours truly is not exactly sure what a hobgoblin is, except that consistency was said by Emerson to be the hobgoblin of small minds. As readers of this blog will know, the Regents and UCOP have been effusively praising the governor for somehow committing to funding the UC pension system fully, even though all he has done is said that UC could use some of its state allocation for the pension (which was always the case).  Absent some larger understanding between UC and the powers-that-be in the state on funding UC operations generally as well as the pension, such statements…

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The Governor’s May Revise Budget (including audio)

Byuclafaculty

Governor Jerry Brown presented his May Revise budget for 2012-13 at a news conference earlier today.  It was followed by a question-and-answer session with state Finance Director Ana Matosantos.  In general terms, the May Revise followed the format of the original January proposal in that it included the assumption that voters would approve a tax initiative in November and that, if they didn’t, there would be trigger cuts.  Since January, as readers of this blog will know, revenues came in below forecast levels and a revised tax initiative was negotiated.  In addition, the state has been prevented from making certain…

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Fork in the Road on Public Pensions in California?

Byuclafaculty

Diligent readers of this blog will know the following 7 points about public pension proposals in California (and their relation to UC’s pension plan): 1) The Regents adopted pension changes – essentially a two-tier defined-benefit approach – for the UC retirement system. 2) The governor is pushing a 12-point “hybrid” system (mix of defined benefit and defined contribution) for all public pensions in California that – unless UC is exempted – could override the Regents’ action. 3) Although it is the official position of UC that it wants an exemption, the governor has not agreed to one. 4) The legislature…

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The Hole Story Has Yet to Be Told

Byuclafaculty

Governor Brown says there is a big “hole” in the state budget that he will tell us about on Monday in the May Revise.  As readers of this blog will know, yours truly does not like the loose way in which the state budget is described.  Words such as hole, gap, deficit, etc., are used interchangeably and without clear definition.  Try looking up “hole” in an accounting textbook.  Stocks and flows are mixed together.  Time periods vary.  Nonetheless, here is what Brown said in a video just released:[youtube=http://www.youtube.com/watch?v=NPc85z9uhJQ&w=320&h=195] Whatever “hole” means, it won’t be pleasant.  Nonetheless, yours truly will attempt…

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November Tax Could Go Up in Smoke in June

Byuclafaculty

You probably know that Governor Brown has now filed his tax initiative for the November ballot.  He will be unveiling his May Revise 2012-13 budget proposal this coming Monday and it is likely to be unpleasant since state tax revenues are coming in below forecast levels for this year.  Exactly how UC will fare in the new proposal is unknown but it was the target of trigger cuts in the January version; the trigger would be pulled if voters do not pass the governor’s tax initiative.  (Ultimately, of course, the budget and any triggers must be enacted by the legislature;…

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Gov. Brown: “Vote for the Tax. Suck it In.”

Byuclafaculty

There probably have been more enticing campaign slogans for ballot initiatives.  But Governor Brown seems to have come up with one that is, well, quotable for the November ballot initiative campaign.  He does appear to have gathered the necessary signatures to get the tax initiative on the ballot, despite a very short timeline for doing so.  UC is likely to endorse the initiative in one way or another.  Details athttp://blogs.sacbee.com/capitolalertlatest/2012/05/jerry-brown-says-tax-signatures-in-hand.html