Tag Archives | California budget crisis

California budget craters yet again

Manic delusions of new revenue followed by the wet, cold fish of revenue shortfall. The California budget tragi-comedy continues. I could write articles about the ongoing California budget crisis by using cut-and-paste from previous articles because the same thing happens every year. Here’s the scenario. 1) California faces an imminent budget crisis because, by law, a […]

Jerry Brown and crossing party lines to save California

When Jerry Brown became governor of California in 2011 he disappeared from public view for six months, spending much time talking to Republicans, crossing party lines in an attempt to work out a grand deal on the California budget. It didn’t work. The chasm is too great and the two sides are still very far […]

California budget grows, makes big assumptions, ignores structural problems

The California budget is 5.6% larger this year than last year.  This no doubt comes as a surprise to most Californians who foolishly assumed that dire predictions of future financial problems coupled with already bludgeon-like spending cuts would mean Sacramento would be hard at work at making the budget smaller. But instead, it’s larger. Welcome […]

California budget crisis: Deficit now astronomical $16 billion

How much longer will California’s pretend-and-extend on the budget continue? Every year it’s the same tiresome fiscal train wreck, but nothing changes. The legislature continues its sleepwalking. No lasting solutions are found. The rot and dysfunction continues and worsens. Californians may be startled to hear that those in other states increasingly view California as a […]

Oops, Sacramento did it again as budget crisis returns

On November 8, Gov. Brown estimated that the coming California budget deficit would be $3.1 billion, while a leaked legislative memo set it at $5-8 billion. Yet, just a few days later on Nov. 17, the non-partisan Legislative Analyst’s Office said (PDF) the actual number would be $13 billion. I must confess that this Keystone […]

California cities facing major revenue shortfalls, rising pension costs

Vallejo is the poster child for what’s ailing California cities. It filed for bankruptcy in 2008, a victim of the real estate crash, losing a major employer in the process, and facing pension costs it cannot possibly meet. Its police department was cut by one-third, and no longer has the resources to focus on low-level […]

California’s new budget. Pretend and extend

Jerry Brown promised no gimmicks or bogus accounting on the budget. Instead, that’s precisely what California got. From my latest on CAIVN. Apparently, $4 billion in unexpected new revenue for the State of California materialized out of thin air right in time to be counted for the budget that just passed. But Gov. Brown and […]

California controller halts legislator pay because budget bill not balanced

[California] Controller John Chiang announced today he has blocked pay for lawmakers, rejecting his own party’s spending plan as insufficient to satisfy a voter-approved law on timely budgets. Good. Maybe the reality of no pay will force California legislators off their dead asses and get them to take genuine action on the budget. Democrats passed […]

Gov. Jerry Brown predicted his California budget veto in March

“I put up an all-cuts budget. Then the Democrats change [the all-cuts budget] and put in gimmicks. Then I veto it. Then everybody sits there until we run out of money. It’s not going to be a pretty sight. It’s like one-two: No tax, all cuts, gimmicky budget, veto, paralysis.” This is what Gov. Brown […]

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