Posts Tagged 'budget'

Taxes and Choices for California

California’s taxation levels have increased to 10.5 percent, raising California to the sixth-highest in the nation in 2008.

Because of a dire budget situation, California must cut education. California is exploring shortening the school year, this would amount to furloughs for teachers since they would take days off without pay. The other option is increasing class sizes, this means laying teachers off.

The fact that California has the sixth-highest tax level in the nation and the 48th lowest spending level in education is an embarrassment. What do you think the lesser of the two evils is, shorter school year with furloughs or larger classrooms with layoffs?

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California’s New Budget Projects a Slow Recovery

Some projections for California’s economy from Governor Schwarzenegger’s budget revise today:

The outlook for the California economy is also for negative growth in 2009 followed by weak growth in 2010, and better growth in 2011:

Personal income is projected to fall 1 percent in 2009; and grow 1.4 percent in 2010, and 3.9 percent in 2011, as compared to 2.5 percent in 2008. The projected decline in personal income is the first since 1938.

Nonfarm payroll employment is forecast to fall by 3.9 percent in 2009 and 0.9 percent in 2010 and grow 1.6 percent in 2011, as compared to a 1.2‑percent decline in 2008.

California’s Fiscal Armageddon

Dan Walters says that if Propositions 1C, 1D and 1E fail, we may have a $20 billion problem in California for 2009-2010. The end result of this problem:

Wholesale slaughter of state spending may be their only option. This is a pivotal point in California political history, a fiscal Armageddon.

Legalizing Pot in California

Looks like California wants to stay in the news after our budget fiasco. Tom Ammiano introduced a bill on Monday to legalize pot in California.

A state legislator proposed legalizing the sale of marijuana in California, saying the plan would generate more than $1 billion annually for the cash-strapped state.

What are the economic benefits and costs of legalizing pot in California?

California Cliff Diving

California has been tilting over the cliff with a $42 billion budget problem. Now it’s about to fall! This will push the State’s unemployment rate over 10% within a couple of months:

$3.8 billion worth of public works projects to be shut down

Schwarzenegger to send 20,000 layoff notices tomorrow

Eliminating all School and College Sports Programs?

Marin County is one of the richest counties in the U.S. Novato may cut its entire sports program to save $6 million. What if every school and college cut its sports programs? Is this a good idea or a bad one?

Marin County’s Novato Unified School District alarmed parents with a proposal to cut its entire sports program to help save $6 million over two years, which would affect about 75% of Novato’s 8,600 students. “When the community heard about the possible cut, they freaked out,” said Superintendent Jan La Torre-Derby, who adds that “it’s not set in stone yet.”

California Budget Vote Tuesday

The Senate will vote Tuesday on California’s budget deadlock. Californians should prepare themselves for the biggest lobby effort ever. Nobody will like this budget and we will hear from everyone when the details emerge. The best hope is everyone cancels out each other and a budget is passed.

Buckle your seat belts – the ride is about to get wild in Sacramento, with state Senate President Pro Tem Darrell Steinberg planning to put a $42 billion budget deal up for a vote.

The deal – a combination of cuts and tax hikes – is expected to be unveiled Monday, then put up for a vote Tuesday.

Whether there are enough Republican votes to make it fly, however, is unknown.

“Darrell has made it clear that there was no handshake agreement, and there may not be the votes,” said one Democratic state senator who was briefed on the plan, but asked not to be named because of the sensitive nature of the talks.

“They are close, and hopefully it will pass,” added a member of the governor’s staff. “But there are still some major issues to be worked out.”

The biggest stumbling block for Republicans – whose support is required for the necessary two-thirds passage – is voting for any tax increase.