California's new budget already facing shortfall

[alp227]

Source: San Francisco Chronicle

(08-09) 15:54 PDT Sacramento --

California's budget already is showing signs of trouble less than seven weeks after it was enacted as taxes and other revenues fell 10 percent below what was projected for the month of July, state Controller John Chiang said Tuesday.

The shortfall, totaling just under $539 million in the first month of the fiscal year, raises concerns that funding for public schools, higher education, health and social services and other programs could be cut even further.

As part of the budget plan, additional triggered cuts will take effect if revenues fall $1 billion short of projections for the year, though K-12 schools and community colleges would not be hit unless revenues are at least $2 billion below what is expected.

If that happens, the public school year could be reduced by seven days.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/08/09/BAMM1KLC9L.DTL

[Karmadillo]

1. California tax revenues plunge, deep cuts to schools could be triggered

Source: LA Times

California’s tax revenues plummeted in July, falling more than 10% below expectations and making it more likely that deeper cuts to public schools built into the state budget in case of a stalled economic recovery will occur.

Gov. Jerry Brown and state lawmakers patched up the final $4 billion of California’s budget shortfall this year by hoping for a windfall economic recovery. Those hopes are now fading fast.

Tax collections in July were $538.8 million below budget forecasts, according to state Controller John Chiang.

Income taxes were up slightly, but sales and corporate collections lagged by a combined nearly $210 million. But the biggest drag was from the unidentified $4 billion that budget writers had banked on.

“Every drop in revenues puts us closer to the drastic trigger cuts that could be imposed next year," Chiang said in a statement. Those automatic cuts include a reduction in schools spending that could shrink the academic year by as many as seven days in some districts.

more...

Read more: http://latimesblogs.latimes.com/california-politics/2011/08/california-revenues-plunges-deep-cuts-to-schools-could-be-triggered.html

[sakabatou]

2. Aw fuck.

[AndyTiedye]

3. "unidentified $4 billion that budget writers had banked on"

Must have been betting that Proposition 19 would pass. :smoke:

[No Elephants]

4. Are you kidding me?

"Gov. Jerry Brown and state lawmakers patched up the final $4 billion of California’s budget shortfall this year by hoping for a windfall economic recovery."

Are you kidding me?

[Politicalboi]

5. Then why is Ca

Paying for Medicare. My mom used to get 96.50 deducted for Medicare in her SS check, but now Ca is paying it. I'm glad someone is, but how can Ca do it with this budget? Prop 19 would have taken care of the short fall had it passed.

[JDPriestly]

6. Your mother is probably on Medicaid.

I'm on Medicare and pay the full amount for my Medicare. The State has nothing to do with it.

If your mother receives very little from Medicare, she may have Medicaid in addition to Medicare. I think that might be paid by the state.

[Le Taz Hot]

7. If she's low-income

MediCal (California's version of Medicaid) will pick up part of the tab although I've never heard of them paying the entire premium.