State Budget

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(May) Revise and Resubmit

In normal times, the state budget is first submitted by the governor in January, per the California constitution. But there is a second stage, a tradition, of the “May Revise.” In mid-to-early May, the governor submits a second budget proposal which reflects updated economic forecasts plus a gathering of political intelligence concerning what will fly and what will not. There was a deviation from this tradition in 2009. In February 2009, the legislature both revised the current year’s budget and enacted a budget for the following year – which contained the now-expiring temporary tax increases. Things did not go smoothly…

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Did He Mention the Pension?

A previous post noted that President Yudof would be meeting with the governor today. The video below is his statement, apparently made before the visit. Members of the UC community would not disagree with anything he said. Reports of the subsequent visit to the governor suggest that what occurred with Brown was more the governor looking for support in his efforts to get his tax program before the voters, one way or another, than the university making its needs known. (See http://blogs.sacbee.com/capitolalertlatest/2011/04/gov-brown-talks-tax-extensions.html.) Not clear is whether UC (UCOP) had a specific agenda for the governor’s consideration. As noted in prior…

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An Opportunity to Go Beyond Meet and Greet

Yesterday, this blog noted that President Yudof “hoped” to meet with Governor Brown. Today’s news is that a meeting will occur this morning. From Capital Alert: Higher education brings out big guns today in the budget wars, with University of California President Mark Yudof, California State University Chancellor Charles Reed and Community Colleges Chancellor Jack Scott pleading their case for sparing colleges and universities from more cuts. They kick off Higher Education Advocacy Day at 9 a.m. on the Capitol’s west steps. Gov. Jerry Brown is set to meet with them privately later this morning. Full article: http://blogs.sacbee.com/capitolalertlatest/#ixzz1IenLHu6n Of course,…

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California Assembly Bill Would Freeze Pay of State Employees Earning $150,000+; Urges Regents to Comply

From the State Worker blog of the Sacramento Bee, 3/30/11: Committee OKs freeze on state pay over $150,000 per year (excerpt) The Assembly Public Employees, Retirement and Social Security Committee has approved a bill that would freeze the pay of state employees earning more than $150,000 per year. Assembly Bill 7, authored by Assemblyman Anthony Portantino, D-Pasadena, prohibits the salary increases or bonuses for those higher-end employees until Jan.1, 2014, while they are employed in the same position or job classification… Full article at http://blogs.sacbee.com/the_state_worker/2011/03/bill-introduced-to-freeze-stat.html#ixzz1I8VZTLSJ The article provides a link to the bill. The bill contains the following language related…

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Governor’s Possible State Budget Deal with GOP Reported to be “Dead”

From “Jerry Brown declares budget talks dead,” Capitol Alert, 3/29/11 Brown did not specify what he would do next… Brown is considering alternative ways to put tax extensions on the ballot, either by a majority in the Legislature or by a ballot initiative. He suggested in his release that he may be skeptical of the majority-vote approach, saying the Constitution requires a two-thirds majority. Full article at http://blogs.sacbee.com/capitolalertlatest/2011/03/brown-budget-talks-with-republ.html#ixzz1I2KX8500 If the talks are truly dead, the issue of the November ballot initiatives (see earlier blog posts) arises. One, as noted in prior posts, would impose a 60% cap on public pensions,…

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PART II: UCOP & Regents: Don’t Say You Weren’t Warned

Someone asked yours truly yesterday whether the GOP pension initiative actually covered existing employees as well as new hires. Apparently, there was a report that the Republican legislator in whose name the initiative was submitted had denied it. The article below – as well as the language of the initiative – makes it clear that existing employees are to be included. The article also notes that Gov. Brown is willing to accept a pension cap of $106,000. That is different from the initiative which has a 60% final pay cap. But it is unacceptable for UC faculty and would override…

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Poll Results on Pensions and Budgets: Let’s Be Cautious in Interpreting the Results

The Public Policy Institute of California (PPIC) takes a respected monthly poll on public attitudes in the state on political and policy issues. The March release is just out. Taken at face value, the public is very concerned about the state budget situation (Figure 2 – scroll down below), there is slippage in support for a special election advocated by Gov. Brown on tax extensions (although a bare majority still support the plan – Figure 3), cutting public pensions is seen as a good way to balance the budget (Figure 4), and the way to reform public pensions is to…

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Outlines of Plan B on the State Budget? Or Negotiating?

Gov. Brown has been hinting that – if he can’t get Republican votes in the next few days to put tax extensions on the ballot – he will do something else to get on the ballot. Example: Brown considering other paths on taxes as Republicans stand firm in talks Steven Harmon, Contra Costa Times, 3/22/11 SACRAMENTO — As Gov. Jerry Brown continued to negotiate with Republican legislators on his plan to extend taxes, he also has begun to weigh going it alone, sources said Tuesday. That could take two paths — forcing a special election onto the ballot through a…

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Panic in the Streets

From former State Assembly Leader Willie Brown’s column this week in the San Francisco Chronicle: What a town. I was at Walgreens the other afternoon and was stunned by the number of people lined up to buy potassium iodide to ward off the possible effects of radiation wafting over from Japan. Even more stunning was watching those same people, clutching their iodide protection, proceed to jaywalk across New Montgomery Street and dodge cars in their rush to get back to work. Full column is at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/03/20/BAAT1IEMD4.DTL Actually, the item in the column that you might want to panic about is…

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Brown Appeals to Public for 2/3 Vote on Tax Extensions

Gov. Brown still does not have the few Republican votes he needs to put his proposed tax extensions on the ballot. My guess is that he has until about April 1 to get those votes if the election is to occur before the end of June. An election could occur after June 30, of course, but that would a) put it into the next fiscal year (for which the vote is supposed to apply) and b) make it hard to refer to the proposal as tax “extensions” (rather than increases) since the temporary taxes will then have expired. Below is…