State Budget

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It’s always good to hit the target but…

Byuclafaculty

We’ll let William Tell us about hitting targets. As we have noted in prior postings, the state received what seemed to be a windfall of $4+ billion in income tax revenue early in 2013 which seemed possibly related to taxpayer concerns about fiscal cliffs, etc.  But the receipts did not reverse later and a key indicator is what happened to income tax receipts in April, the big month for that tax. According to the state controller, April income tax receipts came in as expected under the governor’s budget estimate for the current fiscal year.  See below: So it appears the…

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Slow Growth

Byuclafaculty

Replacement for the Grizzly Bear on the state flag? The California Dept. of Finance regularly estimates population of the state and its local jurisdictions.  It estimates that the state’s population grew at a 0.8% rate in 2012.  Not surprisingly, the faster growing areas within the state are generally those around the Silicon Valley. It’s not an accident that the making of demographic estimates is assigned to the Dept. of Finance because population growth has a variety of effects on the state budget.  California actually has been growing at roughly the national rate since the end of the Cold War when…

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Boulware at the Regents?

Byuclafaculty

Lemuel Ricketts Boulware Today is May Day – often viewed as a labor holiday.  That happenstance brings to mind the role the governor has been playing as an ex officio regent. Governor Brown likes to show his scope of knowledge through quotations, Latin phrases, and historical references.  Earlier this year, when asked about his collective bargaining policy with state unions, he referred to “Boulwarism” as something that he wouldn’t want to do. So what is Boulwarism?  Lemuel Ricketts Boulware was General Electric’s chief bargainer with its unions in the 1950s and early 1960s.  He developed a take-it-or-leave-it style of negotiating,…

We still have the extra dough, but…

Byuclafaculty

Prior posts have noted the fact that around the beginning of this calendar year, an unanticipated $4+ billion arrived in personal income tax (PIT) receipts.  The reason is unclear but may have to do with high-end taxpayers anticipating some bump up in tax rates in 2013.  The issue then became whether the extra money was simply an advance that would dissipate or whether it would stick.  So far, it seems to be sticking.  However, the Legislature Analyst in a posting as of yesterday is cautious as you an see below.  The Analyst also notes that much of the extra funding…

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And if you are done celebrating “more” in the state budget as on the previous posting…

Byuclafaculty

The drawing board According to the LA Times, UC is not likely to like important elements of the forthcoming May revise budget to be issued by the governor: …”We’d like to go back to the drawing board,” said Patrick Lenz, a top UC budget official. The university was not consulted in advance about the details of Brown’s proposal, he said… And what are those elements? Gov. Jerry Brown wants to tie some state funding for California’s public universities to a host of new requirements, including 10% increases in the number of transfer students from community colleges and the percentage of…

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It looks like we have more (despite some drop in expected April revenue)

Byuclafaculty

As we have noted in prior blog posts, California received what seemed to be a windfall in income tax revenue around the end of the calendar year.  It may have been related to high-income folks taking capital gains in anticipation of some kind of fiscal cliff related tax hike at the federal level.  No one really knows.  There was some concern that the windfall would be erased in later receipts but April is a big month for income taxes and, while there was some erosion, the state still appears to be ahead.  Under Prop 98, a good bit of the…

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Hold the Line: Jerry Knows Best

Byuclafaculty

From today’s LA Times: Gov. Jerry Brown is pushing forward with plans to shake up California’s higher education system, including strict rules on tuition and fees, according to an administration spokesman. Under the governor’s proposal, university officials would forfeit increases in state funding if they raise student costs during the next four years.  The governor originally outlined his plans in his January budget proposal. Now, as he prepares to release a revised spending plan next month, administration personnel have been briefing legislative staff and university officials on the details… Full story at http://www.latimes.com/news/local/political/la-me-pc-jerry-brown-colleges-20130419,0,6532913.story  And we thought it was someone else…

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California Oil Tax?

Byuclafaculty

Signal Hill Oil Field, probably 1940s There is currently an initiative for which in theory signatures are being gathered that would gasoline and other fuel to fund a cap on tuition.  I could go into the details but this is one of the many initiatives that are filed without any funding to pay signature gatherers or run a campaign.  It will go nowhere.  Signatures are actually due tomorrow.  There is a link to it below for those who are curious. However, the same wealthy individual who successfully pushed through Prop 39 last year is now pushing the legislature to use…

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Windfall $4+ billion in state receipts remains in state treasury through March

Byuclafaculty

We have noted that over $4 billion beyond the governor’s budget estimates for the current fiscal year began showing up in the state treasury at around the time of the congressional fiscal cliff, etc., decision.  It appeared to come from upped withholding of state income taxes, perhaps from individuals taking capital gains at the end of 2012 to avoid possible tax hikes thereafter.  No one seems to know for sure but once the money arrived, it stayed, i.e., it didn’t seem to be some fluke of timing that subsequently reversed.  The latest state controller’s cash statement continues to show no…