State Budget

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Money Race

Byuclafaculty

To recap prior posts: There are 3 tax initiatives on the ballot.  The governor’s tax initiative has been endorsed by the Regents.  Then there is the Molly Munger school tax and a close-corporate-loophole tax.  Politico wisdom is that having multiple initiatives on the same general subject is confusing and may lead to defeat of all.  The Munger and loophole initiatives have not polled well.  The governor’s initiative is polling marginally ahead but could easily be defeated which would produce trigger cuts midyear including to UC. News reports are that various unions have been contributing to the governor’s tax campaign although some…

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The Tax Battle Begins

Byuclafaculty

The tax initiative battle seems to be beginning. A couple of weeks ago, we posted a YouTube ad favoring the governor’s tax initiative.* It was longer than a typical 30-60 second TV ad, but probably provided a clue to what the TV pro-initiative ads would emphasize. We now have a radio ad from the Howard Jarvis Taxpayers Assn. which suggests that the anti side will emphasize public pensions, public-sector unions, and the cost of the governor’s high-speed rail plan. The radio ad doesn’t specifically name the governor’s tax plan and could just as easily be seen as opposition to any…

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Taxes, Taxes: News on the Tax Front

Byuclafaculty

The Sacramento Bee today is reporting various news on the tax front.  As readers of this blog will know, there are three tax measures on the ballot: the governor’s plan which the Regents recently endorsed, the Molly Munger school tax (Prop 38), and a close-corporate loophole tax (Prop 39). Folk wisdom has it that where there are too many measures on the same subject, voters may reject all of them in confusion. In part to overcome that confusion, the legislature passed a bill that effectively put the governor’s plan as the first initiative on the ballot (Prop 30). In order…

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13 Not a Lucky Number for Lawsuit

Byuclafaculty

Proposition 13 of 1978 is noted mainly for its major reduction and capping of property taxes.  As has been reported previously on this blog, former UCLA Chancellor Charles Young filed a lawsuit challenging another feature of Prop 13, the requirement for a two-thirds vote in the legislature for tax increases. News reports indicate that the premise of the suit has been twice rejected.  It is unclear if there will now be a further appeal to the California Supreme Court. Details:  …The 2nd District Court of Appeal in Los Angeles on Tuesday denied, without comment, an appeal of a lower court…

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Official Description of Governor’s Tax Initiative from the LAO

Byuclafaculty

As readers of this blog will know, the Regents have endorsed Prop 30, the governor’s tax initiative to be on the ballot Nov. 6, 2012.  Below is the official description from the Legislative Analyst’s Office that will be seen by voters. ========= Proposition 30 Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact Fiscal Impact: Increased state tax revenues through 2018-19, averaging about $6 billion annually over the next few years. Revenues available for funding state budget. In 2012-13, planned spending reductions, primarily to…

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Regents Endorse Governor’s Tax Initiative

Byuclafaculty

Although we posted an audio and some description of the July 18 morning session of the Regents in which they endorsed Prop 30, the governor’s tax initiative, you might want to read about it rather than listen.  The Regents acted after the strong urging of President Yudof.  Here is an excerpt from Larry Gordon’s story in the LA Times with a link: …the governing board of the 10-campus system formally endorsed the governor’s tax measure. “It’s a simple question: Will UC be better off if it passes than if it doesn’t? That’s not just an answer of ‘yes,’ that’s an…

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Listen to Audio of the Morning Session of the Regents: July 18, 2012

Byuclafaculty

The Regents sessions on the morning of July 18thwere heavily budget oriented.  This audio is incomplete and starts in the midst of President Yudof’s statement on budget matters and his advocacy of support by the Regents for the governor’s tax initiative on the November ballot.   Public comments by students and others ended in a demonstration of the type that has become standard at Regents meetings.  In essence, demonstrators wanted tuition freezes, even if the governor’s initiative did not pass.  Other items were raised including the Israeli-Palestinian conflict.  Eventually, police cleared the room of demonstrators.  The recording continued during roughly…

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Preview of Coming Campaign for Prop 30: Governor’s Tax Initiative

Byuclafaculty

Here is a preview of what the coming campaign for Prop 30 – the governor’s tax initiative – will look like.  The YouTube video (scene at right; link below) runs over one and a half minutes so it probably won’t air in full on TV (where 30 second and 60 second ads are the norm).  But similar themes are likely to be struck in the pro-Prop 30 campaign. We have not yet seen what the anti campaign will look like. The Regents are likely to endorse Prop 30 at their upcoming meeting. You can see the video below:[youtube=http://www.youtube.com/watch?v=RtO1xsnWsw4&w=320&h=195]

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Tax Initiative War Shaping Up Could Hurt UC

Byuclafaculty

There are three tax measures on the November ballot.  Prop 30 – the governor’s tax initiative – is a temporary increase in income taxes and sales taxes.  If it doesn’t pass, there will be trigger cuts including a $250 million cut to UC.  See prior blog posts for info including the Regents’ likely endorsement of Prop 30.  The tax proposition most in competition with Prop 30 is Prop 38 sponsored by Molly Munger.  Earlier in the game, the governor tried to make a deal with Munger so that her initiative would not appear.  That attempt failed.  Now it is being…

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Post Mortem: What Happened Last Fiscal Year in State General Fund Cash Flows?

Byuclafaculty

Readers of this blog and state budget aficionados will recall that in June 2011, the legislature assumed $4 billion in a kind of extra phantom revenue that was unallocated among the various taxes the state was projected to collect.  Essentially, the legislature and governor assumed that a windfall would arise somewhere, but no one could say precisely where.  Nonetheless, that assumption allowed passage of a budget by a simple majority vote that was ostensibly “balanced” by some definition.   Not surprisingly, now that the state controller has released the cash flows for full fiscal year 2011-12 (which ended June 30,…