Skip to comments.Jerry Brown warns of more cuts to state budget
Posted on 04/25/2012 7:42:01 AM PDT by SmithL
The topic was "States and competitiveness in a global economy," but first off, the panel's moderator wanted Gov. Jerry Brown to give us a "sneak peek" at his 2012-13 budget revision, scheduled for next month.
Brown demurred, but said, "It will be very interesting." In fact, "You'll hear howls of execration over the next 30 days," he told a gathering of Silicon Valley CEOs on Tuesday. That is, when he lays out additional cuts - watch out health and social services - beyond the $4 billion he's already asked for.
Basically, some cuts that Brown wanted have been delayed by the Legislature and court action, which Brown referred to last week when he suggested that the state's $9.2 billion deficit may have increased by $1 billion or more.
Another reason, which he hasn't talked about: The revenue projections on which he based his initial budget are not looking good. In March, there was a shortfall of $233.5 million in revenue, 8.2 percent below projections, according to the state controller.
Most of the shortfall was because the state received less in corporate taxes than anticipated. Previous months weren't much better, and tax revenues for April, the cutoff point, aren't likely to make much difference.
"It's a tale of two cities," Brown said. "There's fabulous wealth, and a lot of problems."
-- The state's unexpected rise in unemployment, back to 11 percent, is one of those problems.
(Excerpt) Read more at sfgate.com ...
Cap & Trade and other new corporate taxes, fees and fines ought to bring in more than enough revenue. Maybe he could tax the crap out of rich people too.
Hey California, say hello to the Laffer curve.
Here you go, Jerry, a freebie. Calculate today what California spends, on average, per employee for health benefits. Cancel every health insurance policy, and add that money to the paychecks of every state employee, noting that it will increase by the same amount as salary increases for the employee.
1) More money goes into state coffers as that’s all taxable money.
2) Employee salaries rise slower than gold plated health benefits.
3) Most employees will choose a cheaper health plan and pocket the difference, meaning more money goes into the state’s economy.
4) The few jobs it costs will far be outweighed by the increase in tax revenues as businesses and contractors follow the example of the state.
5) State unions will welcome the move (those who receive state salaries) as that’s more money in the pockets of unions, while those who don’t get paid directly by the state will scream bloody murder over the fact their members want to do the same thing and crush the far overpriced union mismanaged health benefits.
Oh, and you’ll chop nearly 2 billion off of future budget considerations.
Its tough avoiding budget cuts affecting voting constituencies when almost every non-supporter has fled the state.
Heaven forbid we drill for oil. Just think of the jobs, the income taxes, the ROYALTY payments.
Start by cutting the high speed train to nowhere you damn Jackass!....
Has nothing to do with corporations leaving California due to heavy taxation and environmental regs, right?
Hit them again, harder... harder!
He just added a brand new entitlement called the Dream Act.
When it was up for votes , the DNC said we had to much money on hand and could take on new vote buying programs.