governor

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Progress Report on the State Budget

In case you are wondering where things are concerning the state budget, the Sacramento Bee reports that, “…famed primatologist Jane Goodall paid a visit to the Senate floor during a short floor session Thursday, greeting lawmakers with the call of a wild chimpanzee…” Full report at: http://blogs.sacbee.com/capitolalertlatest/2011/03/herbie-hancock-jane-goodall-wo.html#ixzz1FjzoJO6q No invitation has been extended yet to Goodall from the Academic Senate so the audio – enhanced from the Bee website – is below: More seriously, there are rumors about deals being cut with selected Republicans to obtain the 2/3 vote necessary to put the governor’s proposed tax extensions on the ballot. Exactly…

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News from the Legislature for Legal Beagles

A complex game is playing out over whether a simple majority or a super-majority of the legislature could place Governor Brown’s proposed tax extensions on the ballot. You might think that the Democrats, who have a majority but not a 2/3 majority, would be eager for a ruling that only a simple majority is required. But, in fact, it is the Republicans who have sought such an opinion and now have one from the legislature’s legislative counsel. There appear to be two advantages to the Republicans of an opinion that suggests a simple majority would do the trick. First, none…

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How Now Brown Budget? The Clock is Ticking

As previous posts have noted, Gov. Brown needs a 2/3 vote to put his tax extension proposals – which are an integral part of his budget plan – on the ballot by June. (The current fiscal year ends June 30.) It is unusual for a governor to testify before a legislative committee but he did so yesterday. Most of the testimony was in fact aimed at legislative Republicans who have made no-tax-increase pledges. A video of the testimony from the Sacramento Bee is below. The references to dispensations and vows refer both to the pledges and the governor’s Jesuit background….

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Gov. Brown Removes Controversial “Stanford Study” Author From CalSTRS Board

Readers of this blog will know of the so-called “Stanford Study” which was designed to produce the largest possible estimate of the unfunded liability of the three major state pension funds: CalPERS, CalSTRS, and UCRS. Money & Company blog, LA Times Governor pulls two teachers pension fund appointees (excerpt) February 22, 2011 Gov. Jerry Brown has pulled back two controversial, last-minute appointments made by then-Gov. Arnold Schwarzenegger to a state teachers pension board. On Dec. 31, Republican Schwarzenegger named Steven Kram, 54, of Los Angeles and Cameron Percy, 26, to the California State Teachers’ Retirement System, a $150-billion pension system.Kram…

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Where Is the Budget? Gov. Brown Is Having Diffculty With His Own Party

California voters last November approved a change in the state constitution allowing budgets to be passed with a simple majority vote. As prior posts noted, it appears that Gov. Brown’s budget, while it can be passed with a simple majority, is linked to a ballot proposition that will likely need a 2/3 vote. But put aside the 2/3 problem for a moment. As of now, it is not clear that Brown can get a majority vote for the budget itself, even though both houses of the legislature are controlled by Democrats. The TV ad below is a good illustration of…

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Mind the Gap! The Gap Between the LAO Forecast for Revenue in Budget Outyears and the Governor’s

The Legislative Analyst has posted a forecast for the three major taxes that feed the state budget that is more pessimistic than the governor’s forecast. However, the gap mainly occurs in the outyears, i.e., years beyond the current budget proposal for 2011-12. The forecasts include the governor’s proposed tax extensions which would have to be approved by voters. However, the difference between the two forecasts (LAO vs. governor) is based on underlying assumptions about state economic performance. So presumably, a similar gap would exist regardless of what future tax rates are assumed. The chart below summarizes the gap: LAO includes…

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The Iceman Cometh: Will UC Feel Compelled to Follow Gov. Brown’s Hiring Freeze?

Earlier today, Gov. Brown froze hiring at state agencies with only limited exceptions. In his executive order, he “requests” that agencies not under his direct control implement similar programs. (See the bold oversize text below.) Below is the text of the order: EXECUTIVE ORDER B-3-11 WHEREAS, California’s significant imbalance between revenues and expenditures has resulted in an estimated budget deficit of $25.4 billion; and WHEREAS, strong measures must be implemented to reduce costs and to regain and safeguard the trust of the people of California; and WHEREAS, Executive Order B-1-11, issued on January 11, 2011, ordered state agencies and departments…

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Pension Deal in Legislature to Gain GOP Votes?

There continue to be reports that the Republican price for going along with putting Gov. Brown’s proposed tax extensions on the ballot will be some kind of public pension proposition. To recap, Brown needs the legislature to put his tax extensions on the ballot by June; there is not enough time to go the petition-signature-initiative route. The legislature would normally need a 2/3 vote to do so which would require all Democrats plus 5 Republicans to agree. While there has been discussion of ways to bypass the 2/3 requirement, such an approach could lead to a legal challenge which could…

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Budget from Hell Coming Back

Before Gov. Brown delivered his budget proposal in early January, it was speculated that he would follow a “Budget from Hell” strategy. Under that approach, he would have presented a budget on the assumption that no tax extensions were approved. Having seen Hell, voters would (presumably) gratefully vote for the tax extensions as the path out of Hell. In the end, however, he did not follow that approach. Instead, his budget was premised on the tax extensions being approved. When asked, he said that he did not believe in scare tactics – or at least he did not think scare…