California facing higher $16 billion shortfall

Institutional Causes of California's Budget Problem

Abstract:
Since the early 1990s, California has experienced a recurring budget crisis. This article examines the combined budgets of state and local government and the institutions for creating these budgets to ascertain the source of the problem. The facts are that the state collects more taxes and fees as a percent of income than most other states, but local government has lower revenues in California. Total revenues to all governments as a percentage of income are very near the national average. On the expenditure side, the state spends less than the average for other states, but local governments spend much more. High local expenditures are financed by revenue transfers from the state that account for about 40 percent of the state’s budget. The cause of California’s unusual fiscal relationship is decades of initiatives that more severely constrain local revenues than state revenues. The state has responded by creating a system of state-local transfers that allow local governments to face a form of soft budget constraint, leading to excess local spending and lack of clear accountability for the state’s recurring fiscal crisis. Because the cause is the cumulative effect of numerous state-wide initiatives, the only plausible cure is initiative reform and revision of numerous initiatives, which most likely can be accomplished only through a state constitutional convention. All other pending reforms are at best palliatives, and many would make the fiscal situation worse.

Ahhh, honesty about dishonesty.

mmm, taste like chicken
 
see what happens when you let republicans run the country.

Tax revenues disappear along with any stability in the economy to produce more revenue.


They seem to forget that ARNIE presided over the building of this mess.


Arnie was no republican sweet cheeks. Remember he was married to a Kennedy.
 
Remeber the Guvinator wanted to fix everything?

He coined the word; Kabooky

to describe just how fucking useless the dem controlled Senate was, and still is.

CA was going down, and they were going to make damn sure it occured.

grats
 
As long as California keeps the idea that the less business the state has the more prosperous it is, the state will continue to fail. The answer is to raise taxes and have more regulation. If these were ever ablel to work, the point of no return was reached long ago and are now counter productive.

Half the problems in the state would be solved by getting rid of the environmentalists. Now it's plastic grocery bags. Make them illegal and force everyone into reusable bags because it's good for the environment. Reusable grocery bags are now making people very sick increasing the burden on a fragile health care system where the state basically pays for the majority. To the enviornmentalists, it's okay that people are getting sick. It's the price they are willing to pay for an environmental policy they support. The rich will pay the medical bills. Except we are going to find out what France will find out. What happens when there are no more rich.
 
Once again, the consequence of the state’s lawmakers abdicating their legislative authority to set taxing policy to the voters.

That..and the "Three Strikes" law..has made a fiscal mess in California.

The prison population has exploded..and it ain't cheap.

Well that and the ILLEGAL immigrant population that considers California a safe haven.

Just what do you propose that California does about it's illegal population? The overwhelming majority of the associated costs are things California has NO control over. We are required to educate them and treat them in hospitals. What's your solution?

11% of California's prison population is comprised of illegal aliens, costing us $970 million a year. The Fed only gives us $111 million of that.

Illegal immigrants are a factor in the budget gap math

So what to do? Pass horrible anti-immigration laws (that get challenged in court, costing us even more money) and end up with crops rotting on the vine like Alabama?
 
California no longer has the crops it once had. An environmental activist judge shut off the water to the fields years ago.

California does not want to deport illegals because the illegals are killing Americans. To this state, the more mexicans, the fewer Americans, the better off the state is.
 
As long as California keeps the idea that the less business the state has the more prosperous it is, the state will continue to fail. The answer is to raise taxes and have more regulation. If these were ever ablel to work, the point of no return was reached long ago and are now counter productive.

Half the problems in the state would be solved by getting rid of the environmentalists. Now it's plastic grocery bags. Make them illegal and force everyone into reusable bags because it's good for the environment. Reusable grocery bags are now making people very sick increasing the burden on a fragile health care system where the state basically pays for the majority. To the enviornmentalists, it's okay that people are getting sick. It's the price they are willing to pay for an environmental policy they support. The rich will pay the medical bills. Except we are going to find out what France will find out. What happens when there are no more rich.

As goes California so goes the rest of the Country, if we don't start using fiscal responsibility. The state is a perfect example of raising taxes to offset spending doesn't work. The businesses leave the state, leaving the budget shortfalls to the people that can't pay them. California's unemployment rate is 11%, much higher than Obama's numbers, the businesses that employed those people have left because of over taxation.

What do you think businesses in the US are going to do when the tax rate goes up again. Rich folks aren't going to go away, they'll just go away from the US. Facebook Co-founder Saverin gave up his US citizenship this week.........why?? To escape US taxes. It's the beginning of the end if we don't get this regime out of the White House.
 
That..and the "Three Strikes" law..has made a fiscal mess in California.

The prison population has exploded..and it ain't cheap.

Well that and the ILLEGAL immigrant population that considers California a safe haven.

Just what do you propose that California does about it's illegal population? The overwhelming majority of the associated costs are things California has NO control over. We are required to educate them and treat them in hospitals. What's your solution?

11% of California's prison population is comprised of illegal aliens, costing us $970 million a year. The Fed only gives us $111 million of that.

Illegal immigrants are a factor in the budget gap math

So what to do? Pass horrible anti-immigration laws (that get challenged in court, costing us even more money) and end up with crops rotting on the vine like Alabama?


The major cities in California are SANCTUARY cities, they refuse to cooperate with the FEDs.. so don't give us the FEDS make us do it bullshit..
 
California no longer has the crops it once had. An environmental activist judge shut off the water to the fields years ago.

California does not want to deport illegals because the illegals are killing Americans. To this state, the more mexicans, the fewer Americans, the better off the state is.

You are correct. I visit there. When you go into the grocery stores all the produce says "Product of Mexico."
 
As long as California keeps the idea that the less business the state has the more prosperous it is, the state will continue to fail. The answer is to raise taxes and have more regulation. If these were ever ablel to work, the point of no return was reached long ago and are now counter productive.

Half the problems in the state would be solved by getting rid of the environmentalists. Now it's plastic grocery bags. Make them illegal and force everyone into reusable bags because it's good for the environment. Reusable grocery bags are now making people very sick increasing the burden on a fragile health care system where the state basically pays for the majority. To the enviornmentalists, it's okay that people are getting sick. It's the price they are willing to pay for an environmental policy they support. The rich will pay the medical bills. Except we are going to find out what France will find out. What happens when there are no more rich.

As goes California so goes the rest of the Country, if we don't start using fiscal responsibility. The state is a perfect example of raising taxes to offset spending doesn't work. The businesses leave the state, leaving the budget shortfalls to the people that can't pay them. California's unemployment rate is 11%, much higher than Obama's numbers, the businesses that employed those people have left because of over taxation.

What do you think businesses in the US are going to do when the tax rate goes up again. Rich folks aren't going to go away, they'll just go away from the US. Facebook Co-founder Saverin gave up his US citizenship this week.........why?? To escape US taxes. It's the beginning of the end if we don't get this regime out of the White House.

The number of Americans renouncing their citizenship is going to become a tsunami. Because of new regulations imposed on foreign banks, Americans won't be able to have a bank account in any foreign country. Bank accounts that have been open for years are being closed due to FATCA regulations. Americans working abroad have almost no choice but to renounce their citizenshp.
 
That..and the "Three Strikes" law..has made a fiscal mess in California.

The prison population has exploded..and it ain't cheap.

Well that and the ILLEGAL immigrant population that considers California a safe haven.

Just what do you propose that California does about it's illegal population? The overwhelming majority of the associated costs are things California has NO control over. We are required to educate them and treat them in hospitals. What's your solution?

11% of California's prison population is comprised of illegal aliens, costing us $970 million a year. The Fed only gives us $111 million of that.

Illegal immigrants are a factor in the budget gap math

So what to do? Pass horrible anti-immigration laws (that get challenged in court, costing us even more money) and end up with crops rotting on the vine like Alabama?

How about you make the Federal Government, you know the one stopping Arizona from enforcing those laws, do something?? Why is Obama giving illegal immigrants back door amnesty?? I'll tell you why, they want them to vote, to vote for the Dems so they can keep them on the government dole. Give them free housing, free health care, free education why should they leave?? Require proof of citizenship to receive benefits and the problem is solved.
 
The only "plausible cure"???? Is this an indication that the state is going to raise taxes on local municipalities or cut spending??

"Cumulative effect of state-wide initiatives"?? That's pretty funny. California is in a mess and the writer can think of only one plausible cure?? :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

The "writers" are Stanford Professor of Economics Roger Noll and Bruce E. Cain, Heller Professor of Political Science and Director of the UC, Washington Center. I trust their assessment over yours, I dare say.

We are a representative government for a reason. You need an example, just look at California and its initiative process.

My office, in the last week, has received a half dozen petitions on everything from human trafficking to green jobs. It's ludicrous. That alone is costing CA taxpayers. These must all be counted, re counted and then signature checked. And still we pay our state legislators to "legislate"?
 
That..and the "Three Strikes" law..has made a fiscal mess in California.

The prison population has exploded..and it ain't cheap.

Well that and the ILLEGAL immigrant population that considers California a safe haven.

Just what do you propose that California does about it's illegal population? The overwhelming majority of the associated costs are things California has NO control over. We are required to educate them and treat them in hospitals. What's your solution?

11% of California's prison population is comprised of illegal aliens, costing us $970 million a year. The Fed only gives us $111 million of that.

Illegal immigrants are a factor in the budget gap math

So what to do? Pass horrible anti-immigration laws (that get challenged in court, costing us even more money) and end up with crops rotting on the vine like Alabama?

How about enforcing the law?

ya know, tell all the sanctuary cities to cut it out.

But that would make you all racist instead of law abiding.

buy hey, it's liberal la la land, you should be able to spin it your way.
 
Immigration didnt do this to Cali.

things like three strikes laws and idiot tax law like prop 13 did this
 
The only "plausible cure"???? Is this an indication that the state is going to raise taxes on local municipalities or cut spending??

"Cumulative effect of state-wide initiatives"?? That's pretty funny. California is in a mess and the writer can think of only one plausible cure?? :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

The "writers" are Stanford Professor of Economics Roger Noll and Bruce E. Cain, Heller Professor of Political Science and Director of the UC, Washington Center. I trust their assessment over yours, I dare say.

We are a representative government for a reason. You need an example, just look at California and its initiative process.

My office, in the last week, has received a half dozen petitions on everything from human trafficking to green jobs. It's ludicrous. That alone is costing CA taxpayers. These must all be counted, re counted and then signature checked. And still we pay our state legislators to "legislate"?

You understand the gov't by petition was the goal of the Progressives about 100 years ago, right?
 
Dinkbrain Brown thinks taxes are the way to go all the time. What an idiot. Oh well...Californians voted for him, time for you to reap the whirlwind!
 
California Proposition 13 (1978) - Wikipedia, the free encyclopedia


The measure

Howard Jarvis and Paul Gann were the most vocal and visible advocates of Proposition 13. Officially named the "People's Initiative to Limit Property Taxation," and known popularly as the "Jarvis-Gann Amendment," Proposition 13 was listed on the ballot through the California ballot initiative process, a provision of the California constitution which allows a proposed law or constitutional amendment to be offered to voters if advocates collect a sufficient number of signatures on a petition. Proposition 13 passed with almost 65% of those who voted in favor and with the participation of nearly 70% of registered voters. After passage, it became article 13A of the California state constitution.

By Proposition 13, the annual real estate tax on a parcel of property is limited to 1% of its assessed value. This "assessed value," may be increased only by a maximum of 2% per year, until and unless the property has a change in ownership. At the time of the change in ownership the low assessed value may be reassessed to complete current market value which will produce a new base year value for the property, but future assessments are likewise restricted to the 2% annual maximum increase of the new base year value.




So what do you think happened to tax revenues when the housing market crashed?
 
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