California faces more budget cuts in 2010

January 3, 2010

California heads in to 2010 facing a nearly $21 billion shortfall during the next 18 months, despite a wave of deep spending cuts. [Associated Press]

Pick an issue. Any issue. Class enrollment will swell. Public colleges will raises fees and reduce classes. State workers likely face more furloughs — or layoffs. And the poor may go without welfare support. One veteran Sacramento lawmaker describes 2010 as “an absolutely hard and difficult year.”

There will be one last budget battle under Arnold Schwarzenegger. California’s general fund is depleted, and has fallen from a high of $103 billion in 2007-08 to the current level of $84.6 billion. The Democrats want tax increases. Republicans will push back with spending cuts. The most likely outcome: Political stalemate. The governor is expected to unveil his latest spending plan next week in the annual State of the State address.


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6 Comments

  1. rogerfreberg says:

    Oh, I was hoping the state would follow the ‘San Luis Miracle’ models of our city & county… raise rates on water and sewer, fees and taxes… what could be simpler than that? Didn’t someone in our local government once say… “if we need more money… we’ll go out and get it (from the public).”

    Oh yeah, make sure you clamp down on folks who hold weddings… but look the other way when some folks house felons that have to be taken out in a sweep.

    So much should change… but it takes the will to do it.

    Roger Freberg

    (1) 1 Total Votes - 1 up - 0 down
  2. SLO LOCAL says:

    Ummmm maybe the state should spend less money? In my business, when times are tough I have to decide what I can do without.

    (8) 12 Total Votes - 10 up - 2 down
  3. fat chance says:

    I wonder where the the democrats want to raise taxes,you would think they be running out of places. They can be pretty clever when it comes to taking your hard earned money.

    (12) 18 Total Votes - 15 up - 3 down
    • sloboil says:

      It takes vigorous ignorance to be unaware of California’s:
      — extremely progressive (i.e., weighted toward taxing the wealthy) income tax system
      — low property taxes that have merely raised prices and contributed to property bubbles
      — two-thirds majority required to pass a budget or raise taxes (which gives the lunatic fringe a veto)
      — government by ballot initiative that ties up most of the budget
      — decimation of the civic domain by Prop 13

      (-8) 22 Total Votes - 7 up - 15 down
      • tj says:

        California’s propety taxes are not low. They are the 10th highest out of 50 states. See here::http://articles.moneycentral.msn.com/Taxes/Advice/PropertyTaxesWhereDoesYourStateRank.aspx

        Both the 2/3 majority and Prop 13 were reasonable (and successful) reactions to an out of control legislature that saw tax increases and not cuts as the avenue to balancing the budget.

        Unfortunately, the current legislature still seems unable to see anything but tax increases as a solution, despite the fact that families and businesses (both large and small) are being forced to cut expenditures in the face of declining (or disappearing) revenue streams.

        (14) 14 Total Votes - 14 up - 0 down
        • racket says:

          Thank you for the great link. I played with the table a little, and I think I find that the states with higher property taxes are the states I associate generally with lower property values (NM, WY, etc.).

          A link from your pointer shows that Cali also has the highest sales tax, and one of the higher gas taxes. Cali cigarette tax too bad though.

          (6) 6 Total Votes - 6 up - 0 down

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