Wed Nov 14, 2012, 05:35 PM
Liberal_in_LA (26,668 posts)
California's deficit shrinks to $1.9 billion!! That's tiny for CA. Was 25 Billion.
California's deficit shrinks to $1.9 billion
After years of double-digit deficits, California faces just a $1.9 billion budget gap next year, according to the Legislative Analyst's Office.
The annual fiscal outlook released by the analyst Wednesday showed a "dramatically smaller budget problem" than the state has faced in recent years, according to the report. One year ago, the analyst pegged the problem at $13 billion, and it was $25.4 billion the year before that.
The report cites the improving state economy, prior budget cuts and the passage of the Proposition 30 tax measure as the factors for the sharp improvement. By 2014, the state will have a surplus of $1 billion and that will grow to more than $9 billion by 2017, according to the fiscal outlook.
Driving the budget deficit are lower revenues than expected, combined with higher spending because the dissolution redevelopment agencies has resulted in less money than expected.
Read more: http://www.sfgate.com/bayarea/article/California-s-deficit-shrinks-to-1-9-billion-4037701.php#ixzz2CEsri74o
Response to hughee99 (Reply #13)
Wed Nov 14, 2012, 07:41 PM
Melinda (4,629 posts)
17. The budget you cite predates Proposition 30's passage by 6 months.
Proposition 30 will raise the state's sales tax by a quarter of a cent for four years starting Jan. 1 and increase income taxes for people who make at least $250,000 by up to 3 percentage points for seven years, retroactive to the start of the 2012 tax year. It is projected to raise an average of $6 billion annually for the state's general fund and education to prevent nearly $6 billion in "trigger cuts," mostly to education, this year.
link
The benefit to the CA State University system education costs are immediate:
With state voters approving Gov. Brown’s tax measure to help education, leaders of the University of California system pledged Wednesday to stand by their past promises not to raise tuition for the current school year.
“There’s no doubt about that,†UC system spokesman Steve Montiel said when asked whether those pledges would be maintained.
UC leaders had warned that a midyear tuition hike of 20% -- or about $2,400 for undergraduates -- was likely if Proposition 30 had failed. Now any such potential tuition increase is off the table when the UC regents meet next week in San Francisco.
link
The cuts to social services (Medi-cal, CMSP, Welfare to Work - whose slashing started long ago under Ahnold - were based upon the projected deficit PRIOR to the passage of proposition 30. The outlook for these services is not as dismal as the June 2012 budget forecast you use as the basis for your assertion. If what the OP has posted holds true, then these type cuts should be minimal. And believe me, CA Democrats do not want to cut social services to the poor. It's not what we do.
If anything, austerity in CA has been headed off with the passage of 30, and now with a BLUE super majority in both bodies and a Democratic Governor, I see good things ahead indeed.
Of course you do, your economic sense is right up there with a monkey. Actually the monkey may have more economic sense.
Response to hughee99 (Reply #18)
Wed Nov 14, 2012, 08:05 PM
Melinda (4,629 posts)
19. Yes, it's all projections, BUT, as I showed, the UC System did away with tuition increases based...
on these projections. So it has had an immediate positive effect. I'm super optimistic.
And no apologies necessary, it's all a good exchange of information. That's what discussion boards do - hopefully.
**Edited to add: The new tax rate resultant from Prop 30 is retroactive to ALL CA 2012 income taxes, hence the huge difference in numbers. Rich peeps in CA are not gonna be happy come January 2013!
I bet any rich "peep" will be hightailing it out of CA as soon as possible.
I'm gonna bookmark this thread and pull it next year this time and compare the projected revenue to the actual revenue.
I have a sneaking suspicion that the actual revenue will be significantly lower than projections.
Response to Liberal_in_LA (Original post)
Wed Nov 14, 2012, 07:21 PM
Selatius (20,144 posts)
16. Proposition 30 passed. Here are the new income tax rates on high income earners in CA:
1. Every dollar earned above 250,000 will be taxed at 10.3%
2. Every dollar earned above 300,000 will be taxed at 11.3%
3. Every dollar earned above 500,000 will be taxed at 12.3%
4. Every dollar earned above 1,000,000 will be taxed at 13.3%
The old tax code for upper income earners went as follows:
1. Every dollar earned above 1,000,000 was taxed at 10.3%
Now it may just be me, but weren't the DUmmies demanding tax increases on the top 1% of income earners?
Since when is $250K in the top 1%? Oh, I see what they did, they have now changed the narrative to "high" income earners.
Give the DUmmies an inch and they will take the proverbial mile.
http://www.democraticunderground.com/10021819208
