NYT Can Do Better

A recent article in the New York Times about election results in California included the following sentence (italics added by me): “A measure that would have raised taxes on commercial landlords to raise billions for a state that sorely needs revenue also seemed on track for defeat.” The reporters did not provide support for their assertion — which they … Continue reading NYT Can Do Better →

California’s Tax Revenues

According to the October Finance Bulletin issued by the Department of Finance, California’s tax revenues in September were 43 percent greater than forecast by the 2020–21 Budget Act enacted in June. Revenues for the first three months of the current fiscal year are now $8.7 billion greater than forecast. That’s good news for programs worried about funding cuts. … Continue reading California’s Tax Revenues →

Accurate Reporting of CA Tax Receipts

Recently we came across an erroneous reference in the press to California’s tax receipts. The Department of Finance issues monthly reports, the latest of which may be found here and shows tax receipts running well ahead of forecasts. DOF also tracks state unemployment, which is running well above national unemployment. GFC is keeping a sharp eye on … Continue reading Accurate Reporting of CA Tax Receipts →

California Taxin’

In 2012 California raised the state’s top income tax rate nearly 30 percent to 13.3 percent to boost education funding. Proposition 98 spending on K-12 jumped accordingly: By 2015 the state’s school funding already ranked in the middle of states according to the Legislative Analyst’s Office, by 2016 the National Center for Education Statistics ranked … Continue reading California Taxin’ →

California’s Conflict-Of-Interest Bonds

Imagine you are a donor to a non-profit organization whose board members receive gifts from employees to whom the board, without your consent, promises retirement benefits. Now the organization is asking you for larger donations to cover surging retirement spending but not disclosing the real reason more money is needed. That describes the current situation … Continue reading California’s Conflict-Of-Interest Bonds →

California’s Tax Increases Haven’t Translated Into Service Increases

Proposals to increase federal taxes are very much in the national news lately. Some of the proposals are designed to expand programs but many are about income or wealth redistribution. In contrast, tax increases at the state level of government are usually about expanding programs or addressing deficits. That’s because states provide ~90 percent of … Continue reading California’s Tax Increases Haven’t Translated Into Service Increases →

Billions Being Diverted From CA Teachers

School funding in California is at record levels: Governor’s Budget Governor’s Budget But school districts are cutting staff and holding down raises. That’s largely because they are subsidizing retirees at the expense of active employees. Eg, San Francisco Unified School District will spend >$40 million this year to subsidize health care spending by retirees and … Continue reading Billions Being Diverted From CA Teachers →

California’s Great Diversion

General Fund tax revenues in Governor Jerry Brown’s proposed budget for 2018–19 are expected to be 32 percent higher than ten years ago yet the same budget proposes only 9 percent more spending for California State University than ten years ago. The principal reason is the “Great Diversion” of tax revenue to greater spending on … Continue reading California’s Great Diversion →

California’s Next Tax Increase

Inevitable unless the Big Diversion is ended. Jerry Brown’s budget for 2018–19 predicts revenues will be 32 percent greater than ten years ago yet that same budget proposes 14 percent less for the Judicial Branch and only 8 percent more for the University of California. The principal reason is the “Big Diversion.” Revenue gains are being … Continue reading California’s Next Tax Increase →

Coverup At SFUSD

In June San Francisco’s school board wants voters to approve a new “parcel tax” of $298 per parcel of real property. They claim the money — $50 million per year — is needed to provide teachers with living wages. That’s a worthy objective but it’s not the real reason behind the proposed tax. The real reason is buried deep … Continue reading Coverup At SFUSD →