Discussing State Finance

[one...two...tree 2,762]

For anyone who lives in California or is just interested - this is pretty good discussion on the state's fiscal crisis.

Panel Tackles How to Fix California's Deficit

(excerpt)

With a $24 billion deficit, the state of California has some serious problems. But how to fix them?

That's the challenge that a panel of experts discussed recently at Cal State Fullerton. The panelists: Former state Sen. ####### Ackerman; Max Neiman, senior fellow at the Public Policy Institute of California; Rod Kiewiet, professor of political science at Caltech; and Robert Turnage, assistant vice chancellor for budget for the California State University system.

The speakers agreed that there are many reasons why it is so difficult to resolve budget issues in California — term limits, the two-thirds vote and the state's initiative process are among them.

"The way the system used to work is at the beginning of each year, the governor would propose a budget and then the budget committee in each house, Assembly and Senate, would have three or four months to hold hearings," Ackerman explained. "When the 'May revise' came out, they'd have updated numbers."

At that point, six people (three from each house) would gather and iron out their differences; each house approves the budget, and then, the governor signed it or vetoed it.

Today, the governor and a group of legislative leaders (the assembly speaker, assembly minority leader, senate president pro tempore and senate minority leader), dubbed "The Big Five," develop the budget.

"To boil it down to five people making a decision for 36 million people in the state of California … is a very poor way of developing a budget," Ackerman said. "There are other extenuating factors that contribute to the state's budget woes: a large number of initiatives that lock in legislators."

The areas that the initiatives support, such as education, after-school programs and transportation, are all worthwhile, he added. But that only leaves legislators with a discretionary amount of leeway when considering budget matters.

http://calstate.fullerton.edu/news/Inside/...et-deficit.html

[mawilson 2,133]

How to Fix California's Deficit

Hint: not by raising taxes (which are already among the highest in the union.)

[The_Dude 1,142]

How to Fix California's Deficit

Hint: not by raising taxes (which are already among the highest in the union.)

Incorrect

Estimated at 10.5% of income, California's state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%. Californians pay $5,028 per capita in state and local taxes.

Source

Bill pointed this out in another thread.

[mawilson 2,133]

How to Fix California's Deficit

Hint: not by raising taxes (which are already among the highest in the union.)

Incorrect

Estimated at 10.5% of income, California's state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%. Californians pay $5,028 per capita in state and local taxes.

Source

Bill pointed this out in another thread.

6th highest is not among the highest???

[The_Dude 1,142]

How to Fix California's Deficit

Hint: not by raising taxes (which are already among the highest in the union.)

Incorrect

Estimated at 10.5% of income, California's state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%. Californians pay $5,028 per capita in state and local taxes.

Source

Bill pointed this out in another thread.

6th highest is not among the highest???

Nope, only top 3 are the highest

[mawilson 2,133]

How to Fix California's Deficit

Hint: not by raising taxes (which are already among the highest in the union.)

Incorrect

Estimated at 10.5% of income, California's state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%. Californians pay $5,028 per capita in state and local taxes.

Source

Bill pointed this out in another thread.

6th highest is not among the highest???

Nope, only top 3 are the highest

Don't worry, you'll make the top 3 soon enough.