Will the Governor Sign or Veto the State Budget Passed Last Friday?
So far, not a peep has been heard from his office. When something happens, we’ll let you know.
State Budget
Waiting for a Budget Decision from the Governor
The legislature passed a budget – sort of – last night to meet the June 15 deadline. That – they think – will get them paid, pursuant to the new constitutional arrangements enacted by voters in 2010. It doesn’t mean that the governor won’t veto the budget (as he did last year). News accounts suggest that negotiations are continuing between the legislative Dems and the governor. Note that the governor has line-item veto powers which could be used to cut more out of the budget than what was enacted. On the pay issue: Last year after the governor vetoed the…
Reports that the Dems and the Governor are Closing in on a Budget Deal
There are news reports that the legislative Democrats think they are closing on a budget deal with the governor – presumably by the Friday deadline. The governor has been more guarded in his statements. As a prior blog post noted, there is little cash impact on UC’s budget one way or the other. But the legislature has refused to go along with anything that limits its discretion with regard to UC and explicitly rejects the long-term funding notion that UCOP and the governor have been discussing. The legislature is less harsh than the governor when it comes to Cal Grants…
Ménage à Trois Budget Negotiations Reveal Pluses and Minuses for UC
Legislative Democrats have released a version on the 2012-13 budget that differs from the governor’s May Revise, mainly in featuring lesser cuts to social welfare programs and a smaller reserve projected for the general fund a year from now (June 30, 2013). This release is part of a negotiation process between legislative Dems and the governor, partly in the media and partly behind closed doors. Because a simple majority can pass a budget under rules approved by voters in 2010, the GOP is effectively not part of the negotiations. Back in the day when a two-thirds vote was required, budget…
Sacramento surprise!
Last year, the legislature, after some dramatic moments described in an earlier post, passed a budget with phantom revenue of an extra $4 billion. This added revenue, above and beyond what was forecast for any particular tax, was assumed to materialize somewhere – although no one could specify where. Today, the state controller has issued his cash statement for the first eleven months of this fiscal year and it appears that revenues so far are short by – you’ll never guess! – $4 billion compared to the budget passed last June. Must be a coincidence. In any case, you can…
June 15
As the image on the left indicates, all kinds of things are scheduled for Friday, June 15. However, among them is a constitutional deadline for the legislature to pass a state budget. In the past, despite the constitutional requirement, June 15 was not especially significant since the fiscal year doesn’t start until July 1. The date that really mattered was July 1 because if there is no budget then, the state loses authorization to pay certain bills. Going back to the Great Depression, California had rule requiring a 2/3 vote to pass a budget. Especially beginning in the 1990s, there…
Slipping support for governor’s tax initiative in latest poll
Support for the Brown tax initiative to be on the ballot in November seems to be slipping. Folk wisdom among California politicos is that a controversial ballot proposition should start with at least 60% support before the campaign gets underway. Brown’s support among voters is 52% according to the latest Field Poll. Under Brown’s budget plan (yet to be enacted), there are trigger cuts if the initiative doesn’t pass including $250 million for UC. See below for an excerpt: * Small sample The full poll is at http://www.field.com/fieldpollonline/subscribers/Rls2413.pdf. The November ballot is becoming crowded and is likely to have three…
Glad That’s Clear
Voters created a non-partisan, top-2 primary system which went into full effect on Tuesday. The purpose of the non-partisan primary, as seen by proponents, was to create more “centrists” (compromise-prone representatives) in the legislature and Congress. Centrists would then form a bridge between the polarized parties. As far as the state budget (and UC’s stake in it) goes, the theory was that impasses, particularly over taxes, would be less likely to occur. There is a lot of analysis in the news media post-Tuesday on whether the new system had the effect expected by proponents. In more detail, the theory is…
Weekend Cheer from the New York Times
California Cuts Threaten the Status of Universities Jennifer Medina, 6/1/12, NY Times Class sizes have increased, courses have been cut and tuition has been raised — repeatedly. Fewer colleges are offering summer classes. Administrators rely increasingly on higher tuition from out-of-staters. And there are signs it could get worse: If a tax increase proposed by Gov. Jerry Brown is not approved this year, officials say they will be forced to consider draconian cuts like eliminating entire schools or programs. For generations, the University of California system — home to such globally renowned institutions as Berkeley and U.C.L.A. — has been…
Tobacco Tax Ahead in Poll for June Has Indirect Implications for November
The USC-LA Times poll is reporting that the initiative that would raise tobacco taxes with the funds earmarked for cancer research is supported by 62% of voters. Since the funds raised by the tax would not go into the general fund, there is no direct benefit for UC (except perhaps for future UC cancer researchers). However, a defeat of this tax, especially since it affects only the minority of Californians and voters who smoke, would be taken as a symptom of an anti-tax mood of voters more generally. Obviously, the tobacco industry opposes the initiative and is spending a lot…