State Budget

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More Cuts for UC Under Simple-Majority Budget

Byuclafaculty

If Republican votes cannot be obtained to put tax extensions on the ballot, Democrats in the legislature are reported to be poised to pass a simple-majority budget that would include more cuts to UC. From the Sacramento Bee website: The proposal… includes the following: – $3.4 billion in deferred payments to K-12 schools, community colleges and the University of California. Schools could maintain programs as long as they borrow to fund them. – $1 billion in taking First 5 funds, a move already under legal challenge. – $1.7 billion by asking redevelopment agencies to contribute money to the state under…

Not Yet Out of the Woods on the State Budget

Byuclafaculty

The latest cash statement from the state controller released today covers the fiscal year 2010-11 through May (11/12 of the year). It tells you what has actually happened so far this year as opposed to optimistic forecasts about next year. Despite all of the hoopla about extra revenue, the statement indicates we are not out of the woods regarding the state budget. Relative to last year, sales tax revenue is up 1.7%, less than inflation in other words, which suggests a not-so-vibrant underlying retail economy. Overall revenue is up 7.6% over the same period last year and the gain is…

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Some Mental Reservations on the State Budget: Time to Reconsider?

Byuclafaculty

News accounts this morning are full of the budget drama in Sacramento and whether Governor Brown will get the four Republican votes to put tax extensions on the bracket. The accounts use the usual metaphors. Brown wants a budget with “no gimmicks.” Anything else is “smoke and mirrors.” Etc., Etc. However, the reason Brown might now possibly get the needed GOP votes is that Republicans think that if tax extensions are on the ballot, they will be defeated. In that case, Brown will have made pension, spending cap, and regulatory concessions without getting his extensions. Lost in this reporting is…

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Governor Says There Will Be a State Budget Vote This Week But What That Means Is Uncertain

Byuclafaculty

Gov. Brown released a video – see below – in which he says there will be a budget vote this week. As a prior post noted, June 15 (Wednesday) is the generally-neglected constitutional deadline for the legislature to pass a budget. Exactly what a budget vote might mean is uncertain. Pieces of the budget have already been voted. More could be voted without an entire package being passed by June 15. In principle, legislators will not be paid after June 15, not even retroactively, for each day without a budget. But exactly how that will operate in practice is also…

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How the (budget) sausage is being made

Byuclafaculty

You are not supposed to want to know how sausages are made. The making of the state budget sausage – as a prior post noted – is supposed to happen in the legislature by June 15. For any kind of tax extension or tax-related ballot measure, a 2/3 vote is needed which means a few GOP legislators must go along. Public sector unions have been pushing Gov. Brown to abandon the idea of a vote on tax extensions although they have not explained how he is supposed to get a 2/3 vote for his tax extensions. But they have said…

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Crane Might Fly With Budget/Pension Deal (Or Not): We Will Likely Be in Suspense Until Next Wednesday

Byuclafaculty

Regent-designate David Crane was appointed in the waning moments of the Schwarzenegger regime. Crane is noted for favoring the Schwarzenegger-Whitman approach to public pensions. That might make it unlikely under normal circumstances that the Democrats in the legislature would bless his last-minute appointment. Note that if they don’t approve Crane, that denial of a seat would give Governor Brown the opportunity to name someone else. However, Crane has lately been writing that unions should not be blamed for the pension problem, which might make his case more palatable to legislative Democrats – particularly in the context of budget negotiations and…

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Leg Assembly Summary

Byuclafaculty

These really high-quality cellphone photos come from yesterday’s Legislative Assembly meeting. There were no shockers. Presentations were made by Academic Senate Chair Ann Karagozian, Chancellor Gene Block, and Vice Chancellor Steve Olsen regarding budget and other matters facing the campus this year and next. With regard to the hotel/conference center pause-and-review, Chair Karagozian said that the Olsen review of the proposal would likely take until the fall. Since VC Olsen was present and did not indicate otherwise, I assume that timing is indeed the likely prospect. The Block and Olsen reviews of the budget and related matters indicated that unlike…

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They’re Not Thinking About Our Problems

Byuclafaculty

The May Public Policy Institute of California (PPIC) poll is out today and you will be reading stories in the press about the detailed views of the public on various state issues including the state budget and state governance problems. Obviously, the budget and governance are very important to UC. But hidden in the poll is an important message. Take a look at the table below. What is obvious is that the public, including voters, are not losing sleep over the issues that pollsters ask about except one: “jobs/economy.” Yes, if pressed, respondents will answer questions about other issues. But…

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Legislative Analyst Not Keen on Ending CPEC: Suggests Reform Instead

Byuclafaculty

As noted in a prior entry on this blog, Gov. Brown in his May revise budget proposed terminating the California Postsecondary Education Commission (CPEC). CPEC is supposed to coordinate the various public segments of higher ed and the private higher ed institutions. The Leg Analyst has issued a second document indicating it sees a continuing role for CPEC but suggests reforms including more data analysis of higher ed. Undoubtedly, CPEC agrees. The Leg Analyst’s document is at http://www.lao.ca.gov/handouts/education/2011/LAO_Recommendations_on_Governor%E2%80%99s_Proposal_to_Eliminate_CPEC_052511.pdf The governor’s May revise had plans to kill many boards and commissions of which CPEC is just one. And there are the…