Our View Of Governor’s Proposed 2022-23 Budget

Earlier this week DOF released the Governor’s Proposed Budget for the fiscal year starting July 1. At 400 pages it takes time, a process we have now completed. Some initial thoughts follow:There’s a good deal to like, including: A proposal to extend preventative Medi-Cal coverage to all income-eligible residents that would make CA a multi-payer … Continue reading Our View Of Governor’s Proposed 2022-23 Budget

Governor’s Proposed Budget

Tomorrow the CA Department of Finance will release the “Governor’s Proposed Budget” for the 2022-23 fiscal year that commences July 1. At nearly 300 pages, it is one of two documents providing deep insight into the state government.* I’ve been reading them for nearly two decades now and offer a few tips: Pay little attention … Continue reading Governor’s Proposed Budget

Assembly and Senate 2022-23 Budget Blueprints

Dear Legislators, We enjoyed reading the Senate Budget Plan and Assembly Budget Blueprint for 2022-23. These items stood out to us: We are pleased the Assembly proposes to “scrutinize prison operations.” With the inmate population below 100,000 yet prison staff positions at 55,000 costing $5.5 billion in salary and billions more in benefits, scrutiny is … Continue reading Assembly and Senate 2022-23 Budget Blueprints

Stress Testing In Sacramento

Dear Legislators, In January the Department Of Finance will issue the Governor’s Budget for 2022-23. No section will be more important than the Stress Test, which forecasts revenue losses in the event of a stock market decline such as in 2001-3 and 2008-9. Last January, the Governor’s Budget forecast revenue losses of $100 billion. Just … Continue reading Stress Testing In Sacramento

LAO’s Impossible Task

Dear Legislators, The Legislative Analyst’s Office is filled with talented people who occasionally take on impossible tasks. Take LAO’s recent Fiscal Outlook for Schools in which it boldly predicts that “capital gains revenue [will be] strong in 2022-23.” I can’t predict the stock market next week much less next year but unlike the state I’m … Continue reading LAO’s Impossible Task

CA Needs $100 Billion In Reserves

Dear Legislators,California needs at least $100 billion of reserves. Don't take our word for it. See page 245 of the Governor's Budget: “Revenue losses in this recession forecast would total over $100 billion (an average of over $30 billion per year) for three years, continue with more years of revenue declines in the range of … Continue reading CA Needs $100 Billion In Reserves

Undemocratic Nondisclosure In California

From January through June last year, the California Legislature held hearings about a proposed budget for the 2021-22 fiscal year that allocated the majority of $300 billion of spending to healthcare corporations and government employees who — during that very same period — made political donations to lawmakers that weren't disclosed until July 31, a … Continue reading Undemocratic Nondisclosure In California

California’s Budget Deal

In case you hadn't noticed, we gave you a lengthy respite from our missives while the Legislature and Governor negotiated the budget for the fiscal year starting July 1. Through June 10 we had supplied legislators, you and reporters with several notes describing the need to dramatically boost budget reserves. 27 Democratic legislators got it, … Continue reading California’s Budget Deal

27 Legislators Channel Wayne Morse

Wayne Morse was one of only two US Senators to vote against the Gulf of Tonkin Resolution in 1964 expanding military action in Vietnam. It takes guts to oppose party leadership. This week California saw similar courage when nearly a third of Democratic members of the California Legislature called for budget reserves greater than those … Continue reading 27 Legislators Channel Wayne Morse

California’s K-12 schools are being set up for a fall of epic proportions

If we are reading the laws about school reserves correctly, California’s K-12 schools are being set up for a fall of epic proportions unless schools or the state save much more from surging revenues. Under conditions likely to be met this year, non-basic aid school districts with more than 2,500 Average Daily Attendance must cap reserves at only 10 percent … Continue reading California’s K-12 schools are being set up for a fall of epic proportions