The chart above is self-explanatory. The chart below shows that budget cuts produce tuition increases which then increase the cost of the state’s Cal Grant program. The LAO’s full report is at:http://www.lao.ca.gov/handouts/education/2013/Financial-Aid-and-the-State-Budget031313.pdf
In January, the state controller reported a surprise windfall of about $4 billion arrived in personal income tax revenue. It was unclear why but possibly it had to do with speculation by wealthy taxpayers about the fiscal cliff or prospective income tax changes at the federal level. No one knows. An interesting question was whether the windfall would unwind in February, i.e., come in below estimates. It did unwind a bit. But basically, there still is an unforeseen extra $4 billion in revenue so far this year. What the impact might be on the state budget for the coming year…
UC-Riverside pushes on with its med school despite lack of state support. From the Desert Sun: PALM DESERT — University of California, Riverside officials should know within two weeks whether the state will OK a land transfer critical to its new medical school’s presence in the Coachella Valley. At issue is 11.5 acres along Frank Sinatra Drive, just east of UCR’s existing Palm Desert campus… The medical school plans to build an outpatient medical clinic there that can be used as a teaching facility for students and medical residents, Dean G. Richard Olds said… Olds said there is no plan…
Since the Republicans like any tax cut and the Democrats might go for the one described below, it could conceivably happen. What Gov. Brown might do if such a bill reached his desk is another matter. An Inland Empire assemblyman wants to shave up to 9 percent off the cost of every college textbook sold in the state. On Wednesday, Assemblyman Tim Donnelly, R-Hesperia, announced the introduction of Assembly Bill 479, which would exempt college textbooks sold in California from the state’s sales tax. Only three in 10 college students in the Golden State purchase their college textbooks, according to his…
From the UC-Berkeley Daily Californian: Fitch Ratings announced Thursday that bonds issued by the University of California have been rated AA+.The UC Board of Regents has issued $1.7 billion of AA+ bonds with a stable rating outlook to be sold by negotiation the week of Feb. 25. Fitch cites the university’s exceptional reputation and successful fiscal management as primary reasons for the bonds’ high rating… In addition to (other) positive indicators, Fitch has stated that it regards the university’s diverse revenue base as a favorable credit factor. Decreasing reliance on state funding has provided a measure of safety against future…
We summarized the Legislative Analyst’s report on higher ed funding in a post yesterday and provided a link to the document. One thing that faculty do is evaluate and give grades. In this case, the grade for the report would have to be an “incomplete.” Pensions: The LAO continues its assertion that the state has no legal liability for the UC pension. It wants the legislature to say so. The legislature can say the Moon is made of green cheese if it wants. But the Moon will be what it is. The question of state liability is a legal matter…
Back in the day at Huntington Beach A debate that’s been raging now for several years in California is headed to the Legislature, as two Democratic lawmakers introduce legislation to impose an oil extraction tax, with the proceeds earmarked for higher education and state parks. SB 241 by state Sen. Noreen Evans, D-Santa Rosa, and state Sen. Mark Leno, D-San Francisco, brings front and center a long simmering discussion about whether California should impose a tax on oil production similar to other states. “California is the largest — and only — oil producing state in the nation that does not…
The Legislative Analysts’ Office (LAO) has a new report out critiquing the governor’s higher ed budget proposals. It comments on his online higher ed proposals but relative to all the attention paid to that topic at the most recent Regents meeting, it appears that the LAO doesn’t see them as the solution to budget problems for higher ed) Much of the report involves recommendations that the legislature base future funding increments on meeting performance targets. Because most of the report deals with all three segments of higher ed, the target discussion largely is focused on concerns involving CSU and community…
The state controller released his January cash statement for the state. For the first seven months of the fiscal year, revenues are running over $4 billion ahead of what was anticipated in the original budget. More than all of this amount is coming from the personal income tax. I say more than all because sales tax has come in below forecast – suggesting that the underlying economy is not booming. So why the jump in income tax revenue? It may be that because of the fiscal cliff, etc., wealthy folks – who account disproportionately for the income tax – did…
Yesterday, KPCC’s Airtalk with Larry Mantle featured an interview with the heads of the three segments of higher ed in California: President Mark Yudof of UC, Chancellor Timothy White of CSU (and until recently Chancellor of UC-Riverside), and Brice Harris, Chancellor of the community colleges. The full broadcast ran about three quarters of an hour. I have pulled out just the Yudof excerpts which run about one third as long. As blog readers will know, Yudof has resigned as UC president, effective August. So he may now be a bit freer to say what he wants – but, of course,…
