governor

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Why the UC Pension Reform May Be Undone

Byuclafaculty

Pension reform – finally? John Diaz, San Francisco Chronicle, Jan. 30, 2011 Until very recently, all but a few lonely politicians had one of three reactions to the topic of pension reform: glazed eyes, denial or lip service. But that was before the revelations that top dogs in tiny working-class Bell were pillaging the town treasury for their personal gain, before 36 University of California executives threatened legal action to prevent the state from calculating their pension on a $245,000 limit instead of their actual stratospheric salaries and before the governor’s new budget asked Californians to brace for deeper budget…

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Mystery Phrasing: Budget Calls for Minimizing Tuition and Enrollment Impacts But What Does That Mean?

Byuclafaculty

Excerpt below in italics from the UC portion of the governor’s proposed budget, page 150. See earlier blog entry for link to budget. What does the statement mean? Minimizing tuition and enrollment impacts is not the same thing as averting them (or trying to prohibit them). Targeted Reductions — A decrease of $500 million in 2011‑12 to reflect necessaryfunding reductions to help resolve the budget deficit. These reductions are intendedto minimize fee and enrollment impacts on students by targeting actions that lowerthe costs of instruction and administration. The Administration will work withthe Office of the President and the Regents, as…

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Budget Fallout Begins

Byuclafaculty

Not surprisingly, the budget released by Jerry Brown has produced responses. The prior post contains UC President Yudof’s letter of disappointment. The Brown strategy is to put tax extensions on the ballot before June. Normally, given the late date, putting something on the ballot would require a 2/3 vote and the Democrats – while a majority – do not have 2/3. Republicans have now announced they will not provide the missing votes. There has been a hint of some way of avoiding the need for a 2/3 vote by modifying a proposition that was previously passed. Whether the legal issues…

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Preliminary Overview of the Brown Budget

Byuclafaculty

The Brown budget, based on its budget documents, can be rearranged to break down the problem into manageable pieces. I cannot disentangle “revenue and transfers” – a mischievous term because of the word “transfers” – from what we think of as revenues (taxes, fees, and a few miscellaneous sources). Moreover, the “fund balance” in the general fund is not quite the same as a reserve. (To get the reserve, subtract $770 million from every entry below labeled “fund balance” on the tables.) But the breakdown below will help. (Apologies for odd formatting that the blog program creates.) Highlights First, Brown…

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Drip Drop: More Leaks on State Budget Indicate UC is Targeted

Byuclafaculty

As noted in prior posts, governors typically leak out the outlines of their budget strategies in advance of the official unveiling. The official unveiling – by constitutional mandate – is Monday, Jan. 10. The leaked item below from the Sacramento Bee today indicates explicitly that UC will not be spared: Anatomy of Brown’s budget plan (excerpt) Jan. 09, 2011 The budget Jerry Brown will propose Monday includes deep program cuts, a June election to extend tax increases and a broad reordering of state and local government to close a deficit estimated at $25 billion to $28 billion, according to sources…

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Buried Lede: A way around the 2/3 barrier?

Byuclafaculty

From Wikipedia: Verb: to bury the lede: (idiomatic, US, journalism) To begin a story with details of secondary importance to the reader while postponing more essential points or facts. As prior posts have noted, thanks to the voter last November, a state budget – but not a tax or fee increase – can be passed by a simple majority of the legislature. The strategy for Brown appears to be to present a no-tax Budget from Hell, pass it, and then put a proposition on the ballot by June to extend the tax increases of Feb. 2009 that are due to…

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Will Controller’s Report Undermine Brown Budget Strategy?

Byuclafaculty

Gov. Brown will release his budget on Monday. Meanwhile, the state controller has issued figures on the state’s cash receipts and expenditures through December, i.e., half way through the fiscal year. The figures show revenues up almost a billion dollars relative to projections made when the budget was signed (late). You can find the figures and analyses at : http://www.sco.ca.gov/Files-ARD/CASH/fy1011dec.pdf http://www.sco.ca.gov/Files-EO/01-11summary.pdf There will be a temptation to say the fiscal problem is over or is getting better or will take care of itself. If so, the strategy of presenting a Budget from Hell and then putting tax extensions on the…

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Jerry Brown’s World May Collide With Legislative GOP World on State Budget

Byuclafaculty

As a result of last November’s election, only a simple majority is needed to pass a state budget. However, a 2/3 vote is required to raise taxes or fees. Legislative Democrats have a majority but not a 2/3 supermajority. Gov. Brown’s plan is apparently to propose a budget constrained by current revenue – which would feature major cuts – and then put a measure on the ballot that would extend temporary tax increases the legislature adopted in Feb. 2009 that will soon expire. To put a measure on the ballot, however, he needs a 2/3 vote – which means some…

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Audio of Jerry Brown – Meg Whitman Debate of 9-28-10

Byuclafaculty

The first debate between Jerry Brown and Meg Whitman in the 2010 gubernatorial contest was held on Sept. 28. Although video via internet was promised, I found that one feed did not work at all and another was sporadic and often froze. Although public radio stations KCRW and KPCC did carry the audio, local TV stations did not. (I note in that respect that KCET – which now has 4 digital over-the-air channels – did not bother to carry the debate.) Bottom line: Only audio could be recorded. There may be other sources for the audio. But I have posted…

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Minimum Wage Threat to State Workers Removed for 2 Months

Byuclafaculty

The governor’s attempt to impose the federal minimum wage of $7.25/hour on state workers has been on temporary hold. The Sacramento Bee reports that the hold is effectively at least 2 months. http://www.sacbee.com/2010/07/17/2896268/judges-order-buys-california-state.htmlThe threat of paying the minimum wage did not apply to UC employees but had it actually gone into effect, it might have put UC in a difficult position. UC would be in the position of ending furloughs at the same time other state employees were at the minimum. The minimum wage issue arises because there is no state budget in place and, hence, no authorization to pay…