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CA: State fiscal nightmare: deep cuts on horizon
SFGate.com ^ | 11/16/11 | Wyatt Buchanan

Posted on 11/16/2011 3:49:20 PM PST by NormsRevenge

Sacramento -- California faces deep mid-year cuts to its universities, community colleges, social service programs and public schools - which may have their year shortened - because the state will collect billions in revenue less than expected, according to a report released today.

The report by the Legislative Analyst's Office says the state faces a budget deficit in the current fiscal year largely because it will collect only $300 million of $4 billion that Gov. Jerry Brown and the Legislature added to the budget just days before it was approved in June. Critics had called the sudden infusion of projected revenue "phantom money" that was conjured to avoid deeper spending cuts.

The report says California also faces a budget deficit in the 2012-13 fiscal year of $13 billion.

The projection does not ensure the automatic cuts will be made, as it is one of two revenue reports that will be used to make that determination. The second report will come from the Department of Finance next month and administration officials will select the rosier of the two projections to decide whether the cuts will take place on Jan. 1.

The director of the Department of Finance, Ana Matosantos, will make the final determination by Dec. 15, but the legislative analyst's findings make it much more likely that the cuts will happen.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Culture/Society; Politics/Elections; US: California
KEYWORDS: california; deepcuts; fiscal; horizon; nightmare; unexpected

1 posted on 11/16/2011 3:49:21 PM PST by NormsRevenge
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To: NormsRevenge

you make the bed - you sleep in it


2 posted on 11/16/2011 3:51:48 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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California

Caution: Proceeeeed Carefully!

Socialist Udopia Under Construction


3 posted on 11/16/2011 3:51:48 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: NormsRevenge
California colleges continue to charge Instate tuition of about $5,000. Indiana charges instate tuition at a far more realistic rate of $8,500 per year. Most other states charge more ~ even Texas (although it's still heavily subsidized by oil revenues).

When your instate rate doesn't pay to keep the doors open and the professors on the campus, then you no longer have a state university.

California could keep higher education going through the easy expedient of setting a higher instate rate.

4 posted on 11/16/2011 3:55:44 PM PST by muawiyah
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To: elpadre

All aboard! The bullet train to bankruptcy is leaving the station.


5 posted on 11/16/2011 3:59:08 PM PST by forgotten man (forgotten man)
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James Madison

Annals of Congress, House of Representatives, 3rd Congress, 1st Session, page 170 (1794-01-10)
The Annals summarize speeches in the third person, with the actual text of Madison’s quote as follows:

“Mr. Madison wished to relieve the sufferers, but was afraid of establishing a dangerous precedent, which might hereafter be perverted to the countenance of purposes very different from those of charity. He acknowledged, for his own part, that he could not undertake to lay his finger on that article in the Federal Constitution which granted a right of Congress of expending, on objects of benevolence, the money of their constituents.”

6 posted on 11/16/2011 4:12:04 PM PST by DJ MacWoW (America! The wolves are here! What will you do?)
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To: NormsRevenge
California faces deep mid-year cuts to its universities, community colleges, social service programs and public schools...

All of which are a drop in the bucket compared to the pay and pensions of CA public sector union parasites who control this God-forsaken state.

7 posted on 11/16/2011 4:14:33 PM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: NormsRevenge

You mean you can’t regulate, tax and spend your way to prosperity? Who knew?


8 posted on 11/16/2011 4:14:33 PM PST by rbg81
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To: NormsRevenge
There are tons of people driving around for there to be some sort of depression going on in California.

I suspect that there is a thriving gray and black market economy going on in California right now.

Conservatives at first might shout: Hooray! California has made their taxes and regulations so high it is great to hear that people are getting away with not paying taxes.

However, in the long run this means California becomes Greece. Voting in ever more costly programs while shirking on paying the taxes which would be necessary to fund those programs.

I believe that if California started cracking down on the gray market activity, people might think twice about voting for larger government that they would now have to financially support.

But the California government probably knows this and will refuse to crack down. Only the scofflaws will get away with not having to pay for the socialism they vote for.

9 posted on 11/16/2011 4:21:10 PM PST by who_would_fardels_bear
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To: muawiyah

“Most other states charge more ~ even Texas (although it’s still heavily subsidized by oil revenues).”

Good point. We here in Texas charge Illegals about $9,000, while charging legal people (from out of state) around $25,000.

Still lots more than California.


10 posted on 11/16/2011 4:23:12 PM PST by BobL (Send Rove a Message, VOTE CAIN, no matter what)
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To: NormsRevenge

If the GOP EVEN thinks about bailing out that failed liberal state, I will NEVER vote Republican again.

The liberal policies of that failed state is the blame.
And the liberal CA hacks that created it, can fix it.

NOT ONE single Federal Tax dollar!


11 posted on 11/16/2011 4:23:23 PM PST by tennmountainman
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To: NormsRevenge

Good news, though: The public-union goons won’t lose a penny in pay, benefits and pensions.


12 posted on 11/16/2011 4:24:10 PM PST by pogo101
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To: tennmountainman

I agree, and I live here.


13 posted on 11/16/2011 4:24:56 PM PST by pogo101
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To: NormsRevenge

The citizens of California seem to believe if they just get themselves deep enough in debt, the federal government will have to come and bail them out eventually, and it will all go away.


14 posted on 11/16/2011 4:30:04 PM PST by tacticalogic
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To: NormsRevenge; elpadre
deep mid-year cuts to its universities, community colleges, social service programs and public schools - which may have their year shortened - because the state will collect billions in revenue less than expected

Just what is needed, then cut the CHP, CA Fire, close down all the parks if need be, cut 30,000 state government positions....Cut tax funded services for hundreds of thousands of illegal aliens from Mexico, even though they are governments favorite people. Cut teachers, cops, firefighters incomes by 25 percent, and eliminate all government unions and their lottery style tax paid retirement benefits..

Tax payers need to make as little money as possible, to choke off these destructive government polices. Refuse to contribute more than need be. Starve the GD beast. No new cars, No new loans, Buy nothing for Christmas...Just have a big feast instead...

Kill their taxes...Starve the beast.

15 posted on 11/16/2011 4:33:38 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: NormsRevenge

On a brighter note did you know that BRUCE SPRINGSTIEN and BON JOVI recieve farm subsudies from the federal government, much like the oil companies DO and were grilled on at nausium by the rats in congress. How come Bruce and Bon jovi were not present and put in the hot seat, thier millionaires taking tax payer money? The hypocrites are all coming out into the light, unwillingly. Also Congressional insider trading I love it, I love it. Get those cells warmed up!


16 posted on 11/16/2011 4:38:44 PM PST by ronnie raygun (V)
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To: tacticalogic

The FEDs & Dems want the votes.... why worry?


17 posted on 11/16/2011 4:44:15 PM PST by ptsal
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To: BobL
Amazing isn't it ~ and even the higher Texas rate is SUBSIDIZED. You can just imagine how heavily the California rate is subsidized.

Good colleges and universities don't go broke charging enough to keep the doors open.

This article indicates that CA is going to have to shut down some colleges.

18 posted on 11/16/2011 4:48:23 PM PST by muawiyah
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Donate Today!

19 posted on 11/16/2011 4:52:43 PM PST by RedMDer (Forward With Confidence!)
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To: dragnet2
Berkely, the state's Flagship Campus, charges a tad more than $5500 ~ a lot more http://students.berkeley.edu/admissions/general.asp?id=26

Please note that NON RESIDENTS Pay $22,000 more!

Of course that only lasts a year and then the former non residents get to pay the lower rate and save $22,000.

I don't think that applies to foreign students though ~ probably why you find the top Chinese students flocking to the far colder, spartan, rigorous and eventually more significant Midwestern enormous state universities.

That UC Berkely is almost $10,000 more per year than Yale.

20 posted on 11/16/2011 4:57:55 PM PST by muawiyah
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To: NormsRevenge

Looks like California, otherwise known as American Greece, has finally run out of other peoples’ money to give away. Bet there’s gonna be riots like Greece there too, even more than usual.


21 posted on 11/16/2011 5:20:22 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: muawiyah

I have no idea what you’re talking about.


22 posted on 11/16/2011 5:37:45 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: NormsRevenge

“Socialist Udopia Under Construction”

Correction. Under DE-struction.


23 posted on 11/16/2011 5:43:08 PM PST by chooseascreennamepat (When every candidate is running in last place, everyone is in first place.)
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To: dragnet2

I suspect if they could find a way to rid themselves of the illegal aliens who are choking them to death, they would be halfway there.


24 posted on 11/16/2011 6:08:01 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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To: dragnet2
States take pride in their universities. CA seems to have screwed their budget so bad that they are now talking about eliminating colleges and universities, and cutting semesters short ~ the article above references it, and it doesn't just apply to gradeschools ~ it's the whole shebang.

Students are demonstrating against tuition increases that will still leave California schools chargubg FAR LESS than other states with Great Universities.

At the same time they are discouraging Out Of State students with EXCEEDINGLY HIGH tuition rates for them ~ properly balanced those Out of State and Foreign students (with visas) can provide a much needed financial boost to the universities.

25 posted on 11/16/2011 6:14:26 PM PST by muawiyah
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To: muawiyah
CA seems to have screwed their budget so bad that they are now talking about eliminating colleges and universities, and cutting semesters short

Well no kidding..Here is some breaking news for you:

It's Official: Total US Debt $15,OOO,OOO,OOO,OOO -

It's passed the $15 Trillion...That is 15 trillion....lol

"States take pride in their universities."

Ya mean like Penn State?

Look, I could care less if they shut down every CA university for the next two years...Send the GD message...I hope it people really get pissed off. This is what is needed!!

It's what is needed for them to finally figure out, GOVERNMENT AT ALL LEVELS has betrayed America.

It's what happens when government becomes too big, out of control and corrupt.

26 posted on 11/16/2011 6:44:41 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
Unlike California, the federal government has assets. To start with the US federal government owns outright 30% of the land area.

It also owns the economic zone off shore for 200 miles, and in the Pacific that is an enormous zone since we own thousands of islands.

What that means as a practical matter is that we can back our debt and others less favored can't.

Californians sometimes imagine they own the whole state but they don't. They demanded vast areas be set aside for use as National Forests, National Monuments and National Parks.

Too bad ~ that's now federal gub'mnt land. The mineral resources, which include all sorts of things, are now lost to the state's taxpayers.

27 posted on 11/16/2011 6:50:46 PM PST by muawiyah
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To: muawiyah
Unlike California, the federal government has assets.

Oh Good God...OK, OK...The federal government is performing very well, there is no debt for the next 6 generations, we are not in hock to the tune of 15 trillion, our borders are secured, there is no other big-gov corruption, the rest of the states have big surpluses and run like fine tuned watches...

Okay...That being said, once again Ms. muawiyah, just for you, I could care less if they shut down ever CA university for the next two years...Send the GD message...Get people really pissed off. This is what is needed for them to finally figure out, GOVERNMENT AT ALL LEVELS have betrayed America, whether you have noticed or not.

28 posted on 11/16/2011 6:58:59 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
You are leaping to conclusions again.

The federal government can back its debts with assets ~

Did you imagine the dollar has been the preferred world reserve currency for the last 65 years just because we had a strong economy? There's a lot more to it than that.

At some point we probably ought to start redeeming the debt with that excess property but NOT until we have a balanced budget amendment and some mechanisms in place to PUNISH violations.

29 posted on 11/16/2011 7:06:47 PM PST by muawiyah
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To: All


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30 posted on 11/16/2011 7:08:17 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: NormsRevenge

I bet Illinois does them one better.


31 posted on 11/16/2011 8:36:01 PM PST by 1010RD (First, Do No Harm)
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