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Californians object to increasing taxes in order to pare the state's massive budget deficit, and instead favor closing the breach through spending cuts. But they oppose cuts—and even prefer more spending—on programs that make up 85% of the state's general fund obligations, a new Los Angeles Times/USC Poll has found. That paradox rests on Californians' firm belief that the state's deficit—estimated last week at nearly $25 billion over the next 18 months—can be squared through trimming waste and inefficiencies rather than cutting the programs they hold dear. Despite tens of billions that have been cut from the state budget in...

Schwarzenegger's Last State of State Sacramento -- Declaring "the worst is over for California's economy,'' Gov. Arnold Schwarzenegger Wednesday delivered his last State of the State address, one which offered a sobering message about the Golden State's budget crisis, which he called "our Katrina." Schwarzenegger's 20 minute address called for a $500 million jobs package -- "jobs, jobs, jobs'' -- which he said could train up to 140,000 workers. He urged streamlined permitting of construction projects to provide more jobs; new homebuyer tax credits and exempting green tech manufacturing equipment from the sales tax. Some excerpts and best lines: *On...

The state's budget debacle holds a lesson for America, but one we will probably ignore. California's budget debacle holds a lesson for America, but one we will probably ignore. It's easy to attribute the state's protracted budget stalemate, now temporarily resolved with about $26 billion of spending cuts and accounting gimmicks, to the deep recession and California's peculiar politics. Up to a point, that's true. Representing an eighth of the U.S. economy, California has been harder hit than most states. Unemployment, now 11.6 percent (national average: 9.5 percent), could top 13 percent in 2010, says economist Eduardo Martinez of Moody's...

TEL AVIV (MarketWatch) -- California, fresh off its recent sale of $8.8 billion of short-term notes, plans to sell $4.5 billion of tax-exempt and taxable bonds this week, The Wall Street Journal reported. The new bond-sale plan includes $2 billion of Build America bonds, which enable state and local governments to borrow at lower costs for capital projects, like public buildings, schools, roads and transportation infrastructure, and more. California's sale of short-term notes late in September, which the Journal on Saturday said provided funding to tide the state over until revenue picks up, was well received by buyers, particularly small...

SAN FRANCISCO (Reuters) - California Governor Arnold Schwarzenegger signed a package of bills on Tuesday to balance the state's budget, which should allow the state to stop issuing IOUs instead of paying bills and to prepare for a crucial sale of short-term debt. After weeks of negotiations, the Republican governor and top lawmakers in the Democratic-led legislature early last week agreed to several measures to close the state's massive budget deficit of more than $24 billion. On Friday, the legislature passed many of the measures to close most of the gap but left it to Schwarzenegger to use line-item cuts...

Gov. Arnold Schwarzenegger signed a package of budget bills Tuesday he said contained "the good, the bad and the ugly," including no new tax increases and deep cuts in education and health care. He said he was forced to make additional cuts in parks and child welfare services because lawmakers sent him a package that was $156 million in the red. "We are not out of the troubled waters yet," he said."We are ready if our revenues drop further to make the necessary cuts to again live within our means." Line items totaled $656 million, including cuts in the Office...

Rich Pedroncelli / Associated Press Schwarzenegger discusses the $85-billion revised state budget before signing it at the Capitol today. Calling the budget the 'good, the bad and the ugly,' the governor reduces funding to programs for children's welfare and healthcare, the elderly, and AIDS treatment and prevention.Reporting from Sacramento -- Gov. Arnold Schwarzenegger today signed a budget plan approved by lawmakers to close the state's monumental deficit, using his veto power to impose nearly $500 million in additional cuts. The new reductions will affect child welfare and children's healthcare, the elderly, state parks, and AIDS treatment and prevention beyond...

Analyst advises action now to aid budget later Breaking deal on education funds could cut deficit Sacramento -- California might be able to coast through the next fiscal year after tackling a relatively modest budget deficit, but the state is once again headed for several years of significant shortfalls if no corrective measures are taken, the nonpartisan legislative analyst said Wednesday. Elizabeth Hill said the deficit for the upcoming budget year was $6.7 billion but could be as low as $3.9 billion, depending on how lawmakers handled education spending. Hill warned, however, that the deficit could spiral to nearly $10...

SACRAMENTO - An improving economy is no match for runaway spending by state agencies and lawmakers will face a budget deficit next year of $6.7 billion, according to a report released Wednesday by the Legislature's nonpartisan budget analyst. A variety of one-time solutions and loans used to paper over this year's budget will expire at the end of June, leaving the Legislature and Gov. Arnold Schwarzenegger with a big gap to fill and hard choices to make. "We still have a lot of hard work to do," said Legislative Analyst Elizabeth Hill, whose office advises the Legislature on financial issues....

SAN FRANCISCO (Reuters) - California's state government faces a year-end shortfall of $6.7 billion in its 2005-06 year, a gap it can close with $3.5 billion in deficit-financing bonds and with improving revenues, the state legislative analyst's office said on Wednesday. However, the nonpartisan office, which tracks the state's revenues, spending and budget, said California's budget gap could grow to nearly $10 billion in the state's 2006-07 year because a number of one-time solutions used to balance the current 2004-05 year budget will not be available. In the next year, California's legislative analyst's office said in a report, it estimates...

But more glaring has been the Republicans' carping about Schwarzenegger's apparent caving in to Democrats on spending — especially for higher education and the disabled, aged poor and welfare moms. "Republicans are really a sack of ingrates," asserts one Schwarzenegger advisor, who asked not to be identified.

Governor Schwarzenegger today, in spite of state wide and Wall Street calls to cut state spending, introduced his revised 2004-2005 state budget proposal, the largest budget in the state's history at $103BThat's up $5B from his predessors largest budget and in the opposite direction from Schwarzenegger campaign perception that state spending would be brought under control. The proposed budget also presents the largest deficit budget in the state's historySchwarzenegger offered that this budget proposal would not require increases in taxes but failed to acknowledge that it depends heavily upon the $15B he recently borrowed and that state fees of all...

<p>Everyone knows that California is in a deep fiscal crisis and has been running up multibillion-dollar budget deficits, which its politicians have covered over with an imaginative variety of bookkeeping gimmicks and on-and off-the-books loans.</p> <p>But just how deep is our budgetary hole? The gimmicks make that a very difficult question to answer. Take, for instance, a trick involving the "net operating loss carryforward," which allows corporations to carry forward operating losses from one year into subsequent years to offset profits, thereby lowering their corporate tax bite.</p>

<p>By conventional analysis, the stunning and overwhelming passage of Propositions 57 and 58 has placed California on the road to fiscal recovery.</p> <p>The unprecedented $15 billion bond gives the Legislature and the administration the time they need to put the state's finances in order. The stern spending limits in Prop. 58 will give the governor added tools to restrain state spending. The big margin of victory greatly enhances the governor's political clout with the Legislature to win tough reforms. As those reforms take effect and the economy responds, state revenue will grow quickly to absorb the $1.5 billion in annual debt repayments that Prop. 57 will require.</p>

<p>I opened to the front page of the paper Thursday morning to find the lead headline delivering another tale of California doom: "Growing budget gap seen," it declared.</p> <p>Reading the story, I learned that, even after Governor Schwarzenegger closes the college door on thousands of students and caps access to health care for the children of working families, California will still have an ongoing budget gap of $7 billion, according to Legislative Analyst Elizabeth Hill.</p>

11/20/03 For Immediate Release CONTACT: Bob Biddle (714) 843-4966 SACRAMENTO – Assemblyman Tom Harman (R- Huntington Beach) has announced that he has joined a bipartisan group of 11 legislators in the introduction into the fifth special session of the Assembly a bill identified as ACAX5 1. The bill is being proposed as a budget reserve, spending limit, balanced budget proposal that would help solve California's long-term fiscal problems. The proposal is aimed at solving the State´s year-to-year structural deficit and to prevent future deficits. Provisions of the bipartisan plan include: Creates an annual budget reserve with associated spending conditions; Requires...

Natural Gas Costs To RiseSource: Richmond Times - Dispatch Publication date: 2003-05-16Arrival time: 2003-05-17 Those who heat with natural gas - and one-third of Richmonders do - might be wise to spend some time in the summer insulating their homes and investigating their utilities' budget-billing plans. Supply shortages are expected to push natural-gas prices to what could be much higher levels next winter. At least one prediction has wholesale prices rising so high as to threaten the economic recovery and public safety. Andrew Weissman, an industry analyst and chairman of the Energy Ventures Group in Washington, said President Bush should...

<p>SACRAMENTO - The California Legislature wrapped up its grueling inquiry into the state's botched Oracle contract Monday night with a blunt appeal from the head of the investigating committee: ``We must find another way.''</p> <p>With the hearings behind them, the Legislature and the governor are promising to embark on an ambitious overhaul of the way the state buys not only technology but nearly everything that requires a contract.</p>

Groups call for tax hike on top earners To help preserve human service programs in next year's state budget, a broad coalition called upon lawmakers Monday to embrace legislation that would increase state income taxes collected from the most wealthy Californians. In a Capitol press conference with more than 100 in attendance including union representatives and advocates for the poor participants stood behind a controversial proposal by Senate President Pro Tem John Burton of San Francisco that would temporarily increase personal income taxes on the top 2 percent of California wage earners. Aimed at partially bridging the state's $23.6...

Budget panel has yet to say the T word That's T as in 'taxes,' a term that's AWOL as the state's deadline passes. By John Hill -- Bee Capitol Bureau Published 2:15 a.m. PDT Sunday, June 16, 2002 In two fast-paced weeks, the Legislature's special budget-writing committee has taken scores of actions to cope with a $23.6 billion shortfall. But it has so far sidestepped the fiscal equivalent of the 800-pound gorilla: raising taxes. Gov. Gray Davis proposed $3.5 billion in taxes to help balance the books in the fiscal year that begins July 1, including...