State Budget

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Playing Catch-Up on the State Budget

Byuclafaculty

As prior posts on this blog have noted, there are all kinds of last-minute developments going on regarding the state budget that affect UC including a tuition freeze in exchange for more funding – conditioned on voter approval in November of the governor’s tax initiative. While these developments were occurring, nothing seemed to be emanating from UCOP concerning what these changes in the budget might mean, what view UCOP had of them, etc.  As of this writing, there is still nothing on the UCOP website about the budget changes. However, a letter from President Yudof to the Regents began circulating…

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3rd Posting on Budget Deal With Tuition Freeze; The Aftershock

Byuclafaculty

This is our third posting on the budget deal now moving through the legislature that contains extra money for UC and CSU conditioned on a tuition freeze – all of which is conditioned on voters approving the governor’s November tax initiative. Concerns are being expressed by both higher ed systems about the proposed budget.  CSU has already enacted a tuition increase which it would have to undo.  UC has not made a tuition decision but doesn’t like its hands tied in principle.  In theory, both systems set tuition independently of the legislature with UC having constitutional authority.  On the other…

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Update: UC Tuition Freeze & Other Budget Items Confirmed

Byuclafaculty

Earlier today, we posted an unconfirmed item saying the budget now going through the legislature contains some added funding for UC in exchange for a tuition freeze.  That item has now been confirmed (and it is, as reported, contingent on voter approval of the governor’s tax initiative in November).  So have other elements reported in earlier posts such as added and earmarked funding for the pension (but with no acknowledgment of state liability for the pension).  And the legislature has declined to go along with the governor’s voiding of legislative earmarks for UC and some kind of long-term funding deal…

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UC Tuition Freeze?

Byuclafaculty

There is a report – so far unconfirmed – that the state budget that is yet to be fully enacted will contain some extra money for UC and CSU in exchange for a tuition freeze for this year.  All of this – if confirmed – is conditioned on voters passing the governor’s tax initiative in November which is not a sure thing.  The report comes from a student group, not UCOP.  (Yours truly found nothing on the UCOP website as of 8 AM this morning about this matter.) See http://blogs.sacbee.com/capitolalertlatest/2012/06/uc-student-groups-budget-will-contain-uc-csu-tuition-freeze.html A freeze in June? Of course, it will be colder…

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Are We There Yet?

Byuclafaculty

It might seem puzzling but we actually don’t quite have a state budget.  Yes, the legislature kind of enacted one on June 15. And, yes, the governor and legislative leaders announced a conceptual deal a few days thereafter.  But in fact not all of the details have been worked out as the link below, if you want the full story, describes:http://blogs.sacbee.com/capitolalertlatest/2012/06/democrats-offer-30-million-to-local-health-plans.html Of course, the biggest element of uncertainty from the UC perspective is whether voters will pass the governor’s tax initiative in November, thereby averting trigger cuts to the university. The question does remain, however:

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UPDATE: Gubernatorial Decision

Byuclafaculty

Word is coming in that the governor has now reached a deal with the legislature on the budget so the period of indecision (to veto or not to veto) is now over: Gov. Jerry Brown and legislative leaders have reached a framework of a deal on the state’s $92.1-billion spending plan, according to sources close to the negotiations…  The budget agreement gives counties more flexibility to deal with work requirements for welfare recipients, but does not mandate shorter time limits or stricter work requirements for those receiving assistance, according to the sources, who requested anonymity. The accord also includes the governor’s…

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Just in Time: Governor’s Tax Measure Qualifies for November

Byuclafaculty

There was always a bit of doubt that the governor’s tax initiative would qualify – or qualify in time – for the November ballot. His original initiative – which had somewhat less income tax and somewhat more sales tax than the current version – began to be circulated (by paid circulators). But the California Teachers Assn. was pushing a different initiative and eventually a deal was cut that CTA would drop its campaign in exchange for a revision of Brown’s initiative with more income tax and less sales tax. However, that deal was made late in the game and signature…

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Forecast Lessons from the Past and for the Present

Byuclafaculty

Earlier today, the UCLA Anderson Forecast conference presented its quarterly projections of the U.S. and California economies.  No surprises.  There was a continued forecast (from earlier conferences) of sluggish growth with years to go before what can be truly seen as a return to “normal” occurs.  You can find a media write up at: http://business-news.thestreet.com/daily-news/story/ucla-forecast-economy-lag-3-more-years-high-unemployment-slow-growth-impede-progress/1 An official media release from the Forecast is at:http://uclaforecast.com/contents/archive/2012/media_62012_1.asp The Forecast reminded me of two lessons that can be drawn from recent developments.  The first – from the past – is that there is an underlying problem in California which can be seen in two charts…

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How Long Does the Governor Have for His Budget Decision?

Byuclafaculty

The legislature passed (more or less) a budget on June 15.  As noted on this blog yesterday, we have not heard a peep from the governor whether he will sign it (probably with line-item vetoes) or veto it entirely.  Question: So when is the outer limit for the governor to make his decision?Answer: June 27.Meanwhile, if you turn on your television for news of the budget and don’t see anything, there is nothing wrong with your set:

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Radio Interview with Mark Yudof on UC Funding

Byuclafaculty

You can listen to a radio interview on “Marketplace” aired earlier today with UC President Mark Yudof.  He spoke about a need for a new financial model for funding UC, although exactly what that model might be was not specified.——-You can hear the interview at the link below.  [The embed link on the Marketplace page seems not to work successfully on this blogsite.]