State Budget

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State Fiscal Developments as of July 1

Byuclafaculty

The new state fiscal year has begun with no budget enacted. In the short term, there are few consequences although the longer the no-budget period drags on, the more notable the impact as various state suppliers and local entities are not paid. UC has typically been able to deal with prolonged budget delays although certain payments to it are delayed. A list of what the state controller can and cannot pay can be found at: http://www.sco.ca.gov/July_2010_payments.html Until a day or so ago, there were 3 budget plans: the governor’s May revise and separate plans from the Democrats in the assembly…

State Budget Update: June 22

Byuclafaculty

Budget Update: June 22 Legislative Activity California Treasurer Bill Lockyer says that the tax plan developed by the assembly Democrats in the legislature depends on a bond sale Wall Street will not accept. That is because the Attorney General’s office (Jerry Brown) says the borrowing would violate Prop 58 of 2004. (If such a bond were declared to be illegally issued, the holders could lose everything, even if the state had the cash to honor the commitment.) Assembly Democratic leaders say they disagree with the legal opinion and seem to be pursuing their plan. But if their bonds cannot be…