Budget/Fiscal Archives - Page 9 of 10

State Takes 4.5 million dollars from Davis

By David GreenwaldAugust 1, 200913 comments

The Sacramento Bee has launched a new database to show how much money the state’s new budget takes away from cities and counties. Overall the state is taking away 2 billion dollars of direct money from cities and counties along with another 1.7 billion dollars from local redevelopment agencies this fiscal year.

During the budget agreement cities threatened lawsuits against the state if the state followed through with a suspension of Proposition 1A which was passed by the voters to prevent the state from raiding monies that are designated for cities and counties. While the cities and counties were able to get a devastating take away from transportation funds, the state prevailed in taking monies from redevelopment and also Prop 1A. Cities and counties are now in the position where they will have to decide whether or not to sue the state.

California’s Budget Deficit Closed But Not Eliminated

By David GreenwaldJuly 25, 200911 comments

There were not many pieces of good news in the budget however there was some. For environmentalists the defeat of the Tranquillon Ridge oil drilling project in the majestic waters of the Central Coast was the result of strong and almost unanimous pressure from environmental organizations. Republicans in the Assembly fought the reimbursement of education for the funds that were raided but were defeated in that effort. Cities won some on Friday as monies that were raided on Monday were restored in the floor fight.

All told, the legislature ended up falling short of closing the entire budget deficit. In the meantime education, health care, support for disabilities, state workers, and other programs took huge and devastating hits.

BUDGET DEAL: Devastating Cuts for Education, the Poor, Health Care, and Local Governments

By David GreenwaldJuly 21, 200935 comments

This is going to sound a lot like what I said back in February, but it is so much worse in part because these cuts are top of what was cut back in February. The budget is an all-cuts budget that cuts over 26 billion dollars from the budget. There are no revenue enhancements here, only cuts.

Taking the brunt of the blow once again is education which has now had over 17 billion dollars in cuts in the last two budget deals. That represents nearly one-third of the funding for education which is also the single largest line item on the budget.

Budget Deal May Hinge on More Cuts to Education

By David GreenwaldJuly 16, 200938 comments

Suspension of Prop 98 May Be Last Sticking Point –

Early yesterday the word came down that a budget agreement in Sacramento was imminent. If true, that would have meant that the legislature’s leaders from both sides of the aisle would have reached tentative agreement with the Governor on a plan to cut an additional 26 billion dollars from the budget. Bearing the brunt of these cuts have been the poor, the disabled, state workers, and of course education.

Late last night it was announced that talks had stalled and word leaked out that the point of difference was what to do about education, specifically Proposition 98. Education has already suffered cuts of well over $10 billion and that number could increase even more if the legislature agrees with the Governor to suspend it.

California is Out of Cash and Out of Time

By David GreenwaldJuly 11, 200923 comments

Debunking the Myths of California’s Budget Crisis –

State offices throughout the state were closed yesterday as the state endured another furlough Friday. The July 1 deadline came and went last week with no agreement between the Governor and the legislature. The Governor could have saved the state and taxpayers nearly three billion dollars had he simply accepted a partial solution last week. But instead he held out for the entire 23 billion dollars in spending cuts and when that did not materialize, he vetoed the legislature’s effort and so now instead of having a 23 billion dollar deficit we have a 26 billion dollar deficit.

Ten days have passed since that point, the state is out of cash, had the Governor simply taken the partial solution, at least we would be solvent at this point and would have enough cash to pay our bills. Instead people are not being paid with IOUs. The average person probably has not felt this yet, but that will be coming. The Governor is now talking about a fourth furlough day or another 5% paycut for state employees (which is functionally the same thing) and state employees are talking strike.

AB 155 Prevents Cities From Filing For Bankruptcy Protection

By David GreenwaldJuly 10, 200913 comments

By Justin Smith –

The California Assembly recently approved AB 155 (Mendoza), a bill that prohibits cities and counties from filing bankruptcy without state approval and is headed to the Senate. The bill requires local governments and counties to get approval from the California Debt and Investment Advisory Commission (CDIAC) before filing for bankruptcy.

The California Debt and Investment Advisory Commission consists of the State Treasurer, the Governor or the Director of Finance, the State Controller, two local government finance officials, two Assembly Members, and two Senators.

Analysis: Results of Election Should Not Be Interpreted As A Tax Revolt

By David GreenwaldMay 23, 200947 comments

Many on the right have argued the results of this election should be interpreted as an extension of the Tea Parties that emerged in April and a revival of the tax revolt from the 1970s. The problem with that interpretation is that many of the people who voted against the ballot propositions were actually political liberals who had a very different reason for voting against it.

An additional problem with this interpretation is that of the propositions, only Proposition 1A impacted taxes and even that only two years down the road and only to continue already implemented tax increases for an additional two years.

Commentary: For California It’s May 20th and the Sky is Falling

By David GreenwaldMay 20, 200980 comments

In most ways, what happened at the polls yesterday (or perhaps what did not happen as most people did not vote) is only symbolic in terms of the bigger scheme. The voters were asked in a way to codify an imperfect and in the end insufficient budget deal from February to balance the budget shifting, borrowing, repaying, and eventually capping future spending.

The voters rejected such overtures and probably Assembly Majority Leader Albert Torrico hit the nail on the head when he said last night:

Vanguard Recommendation: Vote No on All Budget Initiatives

By David GreenwaldMay 15, 200917 comments

I have gone back and forth on the ballot initiatives as to whether or not to support them. A few weeks ago I reached what I thought was my final decision, I would simply hold my nose and vote for them. At that time, we were projected to have about a 14 or 15 billion dollar deficit if the propositions failed. That would be reduced to a more manageable but still serious eight billion. I did not like what the propositions did, but if they failed other things that were important would have to be cut, including more from education. So I was going to hold my nose and vote for them.

It is ironic that in the last week, the very measures that Governor Schwarzenegger has trotted out to “scare” voters into for the measures, are the very reason I am now going to vote against all of the propositions. The deficit is too large and passing the propositions makes too little impact on the budget deficit to warrant holding my nose. I will briefly get into each one of them individually, but many of them rely on simply shifting and borrowing monies. That’s not much of a solution to the longer term problem.

Bad to Worse: Governor Projects Deficit at 21 Billion Week Before Special Election

By David GreenwaldMay 12, 200947 comments

Critics are crying foul with the timing of Gov Arnold Schwarzenegger’s announcement that the state will face a deficit of 21 billion dollars should the state not pass the ballot initiatives next Tuesday. But at this point it almost does not matter. If they do pass it, the deficit will be a mere 15 billion dollars, hardly cause for celebration.

At this point, six billion is helpful if Propositions 1C, 1D, and 1E pass. That state would gain six billion dollars against the total total deficit by virtue of shuffling monies around.

What Happens on May 20 After the Ballot Measures Fail

By David GreenwaldMay 10, 200916 comments

There is an election one week from Tuesday and the electorate is angry. And the electorate has every right to be angry.

According to a recently released survey from the Public Policy Institute of California (PPIC), Californians are extremely pessimistic about the California economy, give the governor and legislature approval ratings that hover near record lows, and show less trust in state government than they have ever before. The PPIC survey found that a mere 16 percent of likely voters say they can trust the government in Sacramento to do what is right. And they think the nation as a whole is in better shape than California.

Local Schools Poised To Take Huge Hit if the Propositions Do Not Pass

By David GreenwaldApril 28, 200941 comments

As we discussed at the end of March, Proposition 1B ensures that schools receive $9.3 billion over time, so that the money cut during the current budget crisis is not permanent. The payments to schools will come out of the newly created rainy day fund, but not until 2011-2012 when the state’s fiscal outlook is expected to improve. However, in order for that to occur, there must actually be a rainy day fund. This means that Prop 1B is contingent upon Prop 1A passing. If both Prop 1A and Prop 1B pass, it would guarantee $8 billion in school payments.

As it turns out that is just the tip of the iceberg for education. To see that we need to do a little math. In March, it was announced that the state was already $8 billion in the hole despite the budget agreement from February 20, 2009. Frankly, it may be worse than that by now, but let us assume that is the case. The ballot propositions provide for a variety of shifting and borrowing on monies. If they do not pass, the state will have to find another $7 billion. So the total impact will be roughly $15 billion that the state has to find.

Vanguard Radio will Host Senator Mark Leno on April 29

By David GreenwaldApril 28, 20093 comments

Vanguard Radio will host California Senator Mark Leno on its radio show April 29, 2009 from 6 to 7 pm on KDRT 95.7 FM. Senator Leno will be discussing his pending universal health care legislation, The California Universal Health Care Act of 2009 (SB 810).

The California Universal Health Care Act of 2009 would guarantee comprehensive health care benefits to every California resident and streamline claims and reimbursements, which will save billions of dollars in health care administrative costs.

Brief Conversation with Assemblymember Mariko Yamada

By David GreenwaldApril 26, 20097 comments

The Vanguard caught up with first term Assemblywoman Mariko Yamada at the California Democratic Convention in Sacramento yesterday. Yamada serves the 8th Assembly District representing Davis and much of Yolo County and the Northern and Eastern Portions of Solano County.

Yamada was asked whether it was different being at the convention now as an Assemblymember.

“It is and it isn’t. It’s different of course because I have a different role. But it’s the same because I’m sitting here with all the delegation and I find that to be the proper place to be.”

Vanguard Radio on April 15 Discusses Health Care in California

By David GreenwaldApril 14, 20095 comments

Write in to ask questions of Jessica Rothhaar from Health Access –

Universal health care has long been on the agenda, but for nearly 20 years, politicians from state legislators up to the President of the United States have discussed health care reform, but have not been able to implement it.

At present, there are competing health care bills working their way through the California Legislature. In addition, President Obama is working hard to find a way to pass national health care reform.

Senator Wolk a No-Show On Supporting Universal Healthcare Act

By David GreenwaldMarch 27, 200924 comments

Earlier this month freshman Assemblymember Mariko Yamada announced her support and co-authorship of legislation introduced by Senator Mark Leno that would provide all Californian’s with universal health care.

Said Assemblymember Yamada during the press conference:

It is Time To End the Two-Thirds Rule

By David GreenwaldFebruary 21, 200944 comments

In theory the requirement in California to obtain the consent of two-thirds of the legislature to vote for a budget sounds like an idea that would promote consensus building and bipartisanship. I wish I could say that was in the intent, but it was more mundane. The intent was to prevent tax increases from being enacted. For many years it has accomplished exactly that; however as time has gone on, it has exacted a higher and higher price. It has prevented the type of wholesale structural changes that we need for reform to take place.

It has led to gridlock, forcing budget after budget to be adopted late. It has led to unnecessary delay, wasted time, and worse yet, in a crisis outright paralysis.

Breaking News: Budget Passes – Maldonado Casts Deciding Vote

By David GreenwaldFebruary 19, 200942 comments

California

After an all night session – 45 hours for the entire session – the State Senate voted early this morning 27 to 12 to approve a massive state budget that includes spending cuts, tax increases, and borrowing money to close to $40 billion deficit. California has been at a standstill for the last five days as legislators grappled over a state budget. Governor Schwarzenegger and legislative leaders struck a deal with Senator Maldonado in exchange for providing the third needed vote to pass the state budget. The three Republican votes for the state budget came from Senator Abel Maldonado (R-Santa Maria), Senator Dave Cogdill (R-Modesto), and Senator Roy Ashburn (R-Bakersfield).

Is this When the Planes Start Landing on the Lawn?

By David GreenwaldFebruary 18, 200925 comments

California

It is ironic that Sacramento chose yesterday to honor Captain Chesley Sullenberger who heroically managed to land his imperiled aircraft into the Hudson River and averted disaster by saving his crew. It is ironic because the plane analogy is a metaphor for what is happening right now in Sacramento. In this case the state is out of fuel and needs emergency money in order to land and avert a crisis.

As Senator Cox spoke yesterday on the floor of the Senate, he made reference to a number of metaphors including a correction of Senator Calderon’s botched reference to “Chicken Little.” Senator Cox spoke about the straw that broke the camel’s back, implying that the state taxpayers could no longer bear the load of the tax burden (a tax burden that by most measures ranks somewhere in the middle of the country).

Maldonado Holds California Hostage to his Flights of Fancy

By David GreenwaldFebruary 17, 200930 comments

California

About the last person I expected to be talking about on the Vanguard was Senator Abel Maldonado. Maldonado represents among other places my former hometown of San Luis Obispo. I remember him as the Mayor of Santa Maria, the moderate Republican who defeated the right wing racist Mayor of that town. He rose to prominence as a moderate, often casting the decisive vote on budgets.

He’s about the last person I expected to be holding up the budget, but here he is doing just that. And it appears to be all personal from where I sit. It has nothing to do with policy. Nothing to do with what’s good for this state. It is all about what’s good for Abel.

Suspension of Prop 98 May Be Last Sticking Point –

Debunking the Myths of California’s Budget Crisis –

By Justin Smith –

Write in to ask questions of Jessica Rothhaar from Health Access –

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