State Budget

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State Treasurer Thinks the Budget Trigger Might Be Pulled, Costing UC Another $100 Million

Byuclafaculty

Revenues seem to be falling short of the optimistic estimates contained in the recently passed state budget. As prior posts have noted, if revenue falls short of the estimate, that could result in a budget “trigger” being pulled, leading to more cuts from UC’s budget. From today’s Capitol Alert: Asked about the optimistic projections that state leaders relied upon, Treasurer Bill Lockyer said Wednesday that “I’m a little more skeptical personally, but I don’t have any special knowledge that would try to give you a solid answer.” He said it was less likely the state would fall so far behind…

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UC to Provide a Helping Hand to the State

Byuclafaculty

California looks to UC, CSU for lending hand 7/11/11, Kevin Yamamura, Capitol Alert The state just slashed $650 million each from the California State University and University of California, but it’s now looking to the two systems to loan the state some cash. A new bill moving through the Legislature with little public notice, Senate Bill 79, would establish a new investment fund for UC, CSU, California Community Colleges and the Judicial Council. Under the proposal, each system could contribute no less than $500 million and earn a return from the state, apparently more than they get elsewhere but less…

Open Secret Revealed in Cash Report

Byuclafaculty

The state controller has released his report on cash flows into and out of the California general fund for 2010-11, the fiscal year that ended June 30. And here is something that has been a kind of open secret all along, but disguised by the fluid (polite word) terminology used to describe state budgetary matters. Suppose we define a surplus as a situation in which more flows into the general fund than flows out. Suppose we define a deficit as the opposite. And suppose we say a balanced budget as one in which inflows and outflows match. Now we all…

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LAO State Budget Estimates

Byuclafaculty

The Legislative Analyst has produced a preliminary state budget analysis. The full publication is at http://www.lao.ca.gov/handouts/Econ/2011/Summary_Tables.pdf but the table above is a summary. If you look at “revenue & transfers” (keeping in mind that “transfers” can hide mischief) vs. expenditures, you can see that the budget year that ended June 30 was estimated to be in surplus ($94.781 billion – $91.480 billion = a surplus of +$3.301 billion). The new budget year – assuming sufficient revenue – runs another surplus ($$88.456 billion – $85.937 billion = a surplus of +$2.519 billion). Running these estimated and assumed surpluses restores the general…

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Got any spare change for the UC-Riverside med school?

Byuclafaculty

The saga of the UC-Riverside proposed med school continues post-state budget. Now the request goes to local authorities: UCR Med School requests $12 million grant Nicole C. Brambila, Jun. 30, 2011| Desert Healthcare District board members are mulling over a multi-year $12 million grant request for the new UCR Medical School to help the fledging institution get the social capital it needs for accreditation. The med school was dealt a setback this week when its state funding became a casualty of the revenue shortfall and a $15 million budget request evaporated… Full story at http://www.mydesert.com/article/20110630/NEWS01/110630014/UCR-Med-School-requests-12-million-grant

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Gone: The End of CPEC

Byuclafaculty

From the LA Times today: …Brown completely eliminated the California Postsecondary Education Commission, saving $1.9 million. For nearly four decades, the panel has coordinated planning between California’s three branches of higher education — the California State University and University of California systems and the community colleges. In his veto message, Brown called the commission ineffective… Full article at http://www.latimes.com/news/local/la-me-state-budget-20110701,0,1204898.story It was swell while it lasted:

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Time to Fold?

Byuclafaculty

The saga of the UCR med-school-to-be continues in the Riverside Press-Enterprise (excerpts): UC Riverside officials announced Wednesday that the opening of their proposed medical school will be postponed a year because they did not secure the ongoing state funding needed to gain accreditation. The announcement from Chancellor Timothy White came the day after Democrats in Sacramento passed a 2011-12 budget that did not include extra funding for the medical school. The budget, which Gov. Jerry Brown signed Wednesday night, cut another $150 million from the UC system on top of the $500 million reduction taken earlier this year… “We can’t…

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If the Trigger Is Pulled

Byuclafaculty

As noted in earlier blog posts, the new state budget has a trigger provision that activates if assumed revenue does not materialize. Higher ed takes an additional hit if that occurs. So does K-12. But K-12 school districts are not permitted to make budget plans that assume an additional hit. From today’s Sacramento Bee: …Lawmakers blocked K-12 districts from laying off teachers for the upcoming fiscal year. Teachers also won provisions requiring districts to ignore – for now – the prospect of a $1.75 billion “trigger” cut that could hit K-12 districts if optimistic revenue projections fall short. Instead, the…

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Deeply Disappointed

Byuclafaculty

When the previous (and now-vetoed) state budget was enacted, President Yudof and Regents Chair Gould put out a strong press release condemning the action. Now that we a new budget with the same cut and a trigger that could add still more cuts, the press release reaction seems rather tepid, given that this is the second time around: UC statement on state budget plan 2011-06-28 The following statement about the budget plan announced by Gov. Jerry Brown and the Democratic leaders of the state Legislature was released today (June 28) by the University of California Office of the President: The…

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State Budget Deal Retains Additional Cut to UC and May Trigger More Cuts

Byuclafaculty

An earlier post today included an update reporting that the legislative Democrats have reached a deal with Gov. Brown on the state budget that can be passed by majority vote (without Republican votes) because no new taxes or extensions are involved. The deal is leaking out but contains the additional $150 million in cuts to higher ed that was in the budget Brown vetoed. It also has a trigger feature so that if assumed revenue does not appear, there will be midyear cuts including more to UC. Here is a summary: Democratic aides provided details this afternoon on the handshake…