State Budget

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Is Catch-Up the Strategy on the Tax Initiative?

Byuclafaculty

The opponents of the governor’s tax initiative are already on the radio advertising.  Although the governor’s campaign for his tax initiative is in principle in motion, the media advertising has yet to begin.  As readers of this blog will know, the Regents have endorsed the governor’s initiative. When Jerry Brown ran for governor in 2010, he also was slow to get going against Meg Whitman.  However, he did win with a concentrated blitz toward the end.  Possibly, that is the strategy now.  It is unclear how much funding opponents will have for full-fledged media campaign as the November election nears….

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More on the Corporate Tax/Scholarship Bill Passed in the Assembly

Byuclafaculty

We earlier posted an entry about a bill that passed in the state assembly which closed a corporate tax loophole and used the funds generated for tuition reduction and UC and CSU.  To get the needed 2/3 for a tax vote, two non-Democrats were required. One was a renegade Republican.  The other was an Independent (former Republican), Nathan Fletcher of San Diego.  Fletcher posted a YouTube video explaining his vote.  As also noted earlier, since a 2/3 vote would also be needed to pass this bill, it is unlikely to be enacted. Nonetheless, the explanation by Fletcher is of interest….

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Prop 30 Campaign Officially Starts

Byuclafaculty

Governor Brown kicked off the official campaign for his tax initiative – Prop 30 – which, as readers of this blog will know – was endorsed by the Regents. Early polling has shown a bare majority of voters favor it (and the other two tax initiatives on the November ballot are polling poorly).  It is unclear how much funding the opposition to Prop 30 will be able to raise for a negative campaign.  However, Prop 38 – the “Munger tax” initiative which is focused on schools – does have money behind it and its campaign will push the argument that…

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Follow Up on Close-Loophole-for-Tuition-Cut Bill

Byuclafaculty

Yesterday, we noted the passage in the state assembly of a bill that closed a corporate tax loophole and used the money for higher ed tuition cuts.  The bill required a 2/3 vote and squeezed by with one independent vote (a former Republican who quit the party) and one from a renegade Republican – Brian Nestande – who deviated from the party line. The renegade – depending on which story you read – either stepped down from chairing the Republican caucus in the assembly or was forced out. The stepped-down version is athttp://www.sacbee.com/2012/08/15/4726584/california-republican-leader-gives.html The forced-out version is athttp://www.camajorityreport.com/index.php?module=articles&func=display&ptid=9&aid=4877 It probably…

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And in the State Senate?

Byuclafaculty

From the Sacramento Bee‘s Capitol Alert blog last night: By a razor-thin margin, the California Assembly passed legislation today to raise a billion dollars annually for middle-class college scholarships by altering tax law for numerous out–of-state corporations. The measure, Assembly Bill 1500, passed 54-24, the bare-minimum two-thirds vote needed for tax or fee increases. Democrats supported the measure, as did Republicans Brian Nestande of Palm Desertand Independent Nathan Fletcher of San Diego Assembly Speaker John A. Perez proposed the bill as a companion to his separate legislation, Assembly Bill 1501, which would spend the billion dollars raised to assist college and university students whose families earn less than $150,000 per year……

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The Legislature is Watching

Byuclafaculty

From the publication “Supplemental Report of the 2012-13 Budget Package” put out by the Legislative Analyst’s Office (LAO): Item 6440‑001‑0001—University of California (UC) Audit Report. It is the intent of the Legislature, and in follow‑up to State Audit Report 2010‑105, that by July 31, 2012, UC provide to the appropriate legislative budget subcommittees and LAO the recommendations of the systemwide working group established to examine variation in funding across the system.  Further, it is the intent of the Legislature that UC identify the amount of revenues from the general funds and tuition budget that each campus received in 2012‑13 for…

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You Might Not Want to Look…

Byuclafaculty

…at the July cash statement of the state controller. Because if you do, you will find out that revenues in the first month of the fiscal year came in over $400 million below estimates in the recently-enacted state budget. And, of course, there could be trigger cuts in the budget (including at UC) although such cuts are more contingent on the passage by voters (or not) of the governor’s tax initiative, Prop 30. If you do want to look, nonetheless, the report is at:http://www.sco.ca.gov/Files-ARD/CASH/fy1213_jul.pdf Look if you dare:

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Legislative Agenda

Byuclafaculty

From the San Francisco Chronicle: After a monthlong break, the Legislature returns to work at the Capitol on Monday to take on one of the Golden State’s thorniest issues:public employee pensions. The Senate and Assembly have just four weeks to vote on hundreds of bills before the two-year session concludes at the end of the month, but the main focus will be on changing the pension compensation system. Just what those changes will entail is unclear. Gov. Jerry Brown has proposed increasing the retirement age and creating a hybrid system that includes a 401(k)-style benefit, among other things, but lawmakers have yet to approve those or anything else. Legislative leaders…

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Can’t Help: Part II

Byuclafaculty

Yesterday’s posting noted the scandal of undetected state park funds and the negative impact that affair could have on the likelihood that the governor’s tax initiative on the November ballot will be approved by voters.  In fact, any news item that suggests misspending of state funds is likely to have a negative effect.  Today’s Sacramento Bee carries a story related to the rebuilding of the Bay Bridge.  It was found that a Caltrans employee – since departed – had faked certain safety test data.  There were assurances that everything was OK nonetheless and it was just one bad apple. Turns…

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Can’t help

Byuclafaculty

You may have noticed various headlines about hidden funds the state was holding for parks. Usually, when we talk about the state budget, we are referring to the general fund which is the operating budget for the state.  However, many other funds have been created for specialized purposes.  Some have earmarked taxes that feed them, e.g., the gasoline tax for transportation. Transportation is the biggest area of such non-general fund budgets.  But there are many other funds – some containing a few thousand dollars. When the general fund gets into trouble, the state borrows from the other funds. It puts…