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California forecasts state budget surplus of $2.4b, surpluses for next 6 years

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XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
http://www.sfgate.com/politics/article/Good-news-California-Surplus-is-2-4-billion-4997158.php

Sacramento -- For the first time in nearly a decade, California is collecting more revenue than it is spending and will finish the fiscal year with an extra $2.4 billion, according to a report released Wednesday by the Legislature's nonpartisan budget analyst.

The good news comes after an era that saw one of the worst budget crises in California history - the fiscal shortfall sank to $60 billion in the 2009-10 budget, the state controller mailed IOUs to vendors in 2009 and state lawmakers slashed programs year after year to make ends meet.

Now, thanks to the passage of Proposition 30 last year and the improving economy, California is looking at surpluses over the next six years - even after the temporary taxes under Prop. 30 expire, according to the Legislative Analyst's Office.

The legislative analyst projected surpluses of $2.4 billion by June 2014 and $5.6 billion by June 2015. Reserves are projected to continue growing to nearly $10 billion by June 2018.

The state this year will spend $96.2 billion in general fund services, which include public education, colleges and universities, prisons and health and human services.

Legislative Analyst Mac Taylor said Prop. 30, which increased sales taxes through 2016 and personal income taxes on the wealthy through 2018, would not have the "fiscal cliff" effect that some feared.

$3.1 billion for schools

Under the analyst's projections, California schools will receive an additional $3.1 billion this school year.

"Despite the good news of the report ... we do caution the Legislature that things can change quickly," Taylor said.

The report noted that a relatively moderate economic downturn could result once again in operating deficits, even if the Legislature did not spend reserves from 2013-14 and 2014-15.

"We aren't predicting that kind of downturn in the very near future, but it is possible," Taylor said. "The last thing we would want the Legislature to do is be in the same shape it was in 2008 when we went into the great recession, when we had no reserves and an underlying budgetary problem."

Economy improving

Taylor said California's improving economy - buoyed by the pickup in housing prices and sales - contributed to the sunny outlook over the next six years.

Last year at this time, the legislative analyst projected that California would end the 2012-13 fiscal year with a $1.9 billion deficit. But instead, the state ended with a surplus estimated at $234 million. Likewise, this year's projected $2.4 billion surplus is higher than expected, due to an increase in capital gains and stock price growth.

"The state's budget has come a long way in the past three years," said state Director of Finance Michael Cohen. "Any additional revenue that materializes will be inextricably linked to capital gains - the state's most volatile revenue source. Recent history reminds us painfully of what happens when the state makes ongoing spending commitments based on what turn out to be one-time spikes in capital gains."

Pay off state's debt

Cohen said the focus should remain on paying off the state's debt and building a reserve to "ensure that we do not return to the days of $26 billion deficits."

Last year, Taylor cautioned Democratic lawmakers holding a supermajority in the Legislature that the focus should be on paying off debts and building a reserve, not restoring previously cut services. Assembly Speaker John Pérez, D-Los Angeles, said the legislative analyst's numbers reflect the fiscal restraint both houses and the governor have shown.

"While the surpluses and increased revenue projections are welcome after so many years of recession and deficit, our job now is to maintain the fiscal prudence that put us in this favorable position, while at the same time making smart use of one-time money and stronger revenues to reinvest in California families," Pérez said.

California Democrats held a supermajority periodically during the last legislative session and are awaiting results in a tight Assembly race in Southern California that would restore their two-thirds power in the 80-member Assembly.

Families still hurting

The Legislature reconvenes in January, when Democratic lawmakers will be faced with their commitment to fiscal restraint and their desire to restore social services that have hurt needy families.

"We have many families still affected by the housing crisis, seniors with economic insecurity and folks without jobs," said Assemblywoman Nancy Skinner, D-Berkeley. "While forecasts are good, we still have to be smart and prudent to avoid bust cycles - but it's wonderful after years of difficult economic decisions that we are in a position to reinvest in California."
Click to expand...

aItqluE.gif
 
They need to reinvest a shitload into education to start, make sure the incoming generation(s) are better educated.
And no, this does not mean buy iPads for everyone...
 
Tablo said:
They need to reinvest a shitload into education to start, make sure the incoming generation(s) are better educated.
And no, this does not mean buy iPads for everyone...
Click to expand...

You know they want to do that to waste money. Latest fad by all the schoolboards all over the world.
 
Tablo said:
They need to reinvest a shitload into education to start, make sure the incoming generation(s) are better educated.
And no, this does not mean buy iPads for everyone...
Click to expand...

that stupid ipad thing. tablets in schools are a good call but not the goddamn ipad. something cheaper please.
 
Final Boss said:
It's not a fanboy war as much as you may want it to be, it's about having a tablet in school that will be supported with the apps and updates
Click to expand...

Yessir. My students bring their own devices in and the kids with ipads find information faster and have access to far more relevant apps than the handful of kids with non ipad devices. Most of them are older ipads as well so they bought them for reasonable prices.
Allowing devices was one of the best decisions we ever made too, opens up a whole new level of teaching options and encourages self reliance and independent learning.
 
I`ve noticed a huge influx in construction jobs popping up for bidding these past two years. I would say about 50% (just a guess) are state funded jobs which means work for a lot of people. And those state funded jobs mean they are prevailing wage which means wages range from $25 an hour to $60 an hour depending on your trade.

Our company is booked with a lot of big jobs next year. I`m really happy our state has had a turnaround.

I`m talking about Southern Cali BTW, not sure about the situation up north.
 
siddx said:
Yessir. My students bring their own devices in and the kids with ipads find information faster and have access to far more relevant apps than the handful of kids with non ipad devices. Most of them are older ipads as well so they bought them for reasonable prices.
Allowing devices was one of the best decisions we ever made too, opens up a whole new level of teaching options and encourages self reliance and independent learning.
Click to expand...

kids can bring their own tablets?

I thought tablets in classrooms made sense only because the schools could lock them down for education purposes only.
 
Final Boss said:
It's not a fanboy war as much as you may want it to be, it's about having a tablet in school that will be supported with the apps and updates
Click to expand...

I agree, but what about several years down the road when Apple's software update (iOS 10+) turns these tablets into slow, laggy shadows of their launch performances?

We've seen what happened to the iPhone 4 and iPad 3 this year with iOS 7, and even last year's iPad Mini seems to performance noticeably worse than it did with iOS 6 installed.

Will California be upgrading two, three times a decade?
 
Rayis said:
That's what the commie socialism of those gay-loving tree-hugging hippies does to you.
Click to expand...

Speaking of gay-loving and relating that to the economy, I recently read that the economy of the state of Illinois will generate $50-$100 million more dollars over the next few years due to the legalization of gay marriage and everything that goes along with it (spending on ceremonies, dress/tux rentals, catering, etc). Not counting out-of-state couples that come to Illinois to get married.

Score one more for the good guys.
 
Rayis said:
That's what the commie socialism of those gay-loving tree-hugging hippies does to you.
Click to expand...


they should twist the knife in by legalizing and taxing recreational weed. $$$$

being cool gets you rich! Thinking of it now, it makes total sense. I'm surprised no one in the usa tries that strat more often.
 
CrunchyB said:
http://www.pcmag.com/article2/0,2817,2420688,00.asp
Click to expand...

I'm guessing they purchased the 64 gig iPads, which is flat out overkill. We have 16 gig iPads here and there's been no issues with space (so far...).

Gotta love Apple's strange "education pricing" on them. We only get discounts when buying them in quantities of 10....and even then a 16 gig iPad only goes down to $479. So if we buy 11 iPads, we get 10 of them at $479 each and 1 at $499. (no joke) We do get a break on the Applecare though which is nice....
 
Recall going to a state college during our shitty budget and their budgets getting swift kicks in the dick. It was so bad how far back things were scaled. Hope they give newer students more to work with.
 
Good, now we can stop cutting education, right? Oh wait, no, this surplus isn't going to help tax payers out. Go fuck yourself, CA government.
 
It would be great if we could reinvest in the Court system, which has had its budget severely cut in the last couple of years. The lags in getting cases and motions heard is getting crazy. If you file a motion today, expect a hearing date mid-way through 2014.

EDIT: OK. I guess we should keep saving money...so I'll settle for maybe a tiny bit more money and/or at least no more cuts.
 
We hit a budget surplus here in Wisconsin. How did the GOP controlled government react? Why, by cutting taxes, of course! Hope Cali does better than that.
 
This is great news. Now we better not hear any bullshit about a need for new taxes / tax increases any time soon.....
 
mj1108 said:
I'm guessing they purchased the 64 gig iPads, which is flat out overkill. We have 16 gig iPads here and there's been no issues with space (so far...).

Gotta love Apple's strange "education pricing" on them. We only get discounts when buying them in quantities of 10....and even then a 16 gig iPad only goes down to $479. So if we buy 11 iPads, we get 10 of them at $479 each and 1 at $499. (no joke) We do get a break on the Applecare though which is nice....
Click to expand...

479 is what I paid for my air a few days after release. Seems like a pretty bum deal
 
This is an extremely temporary thing and not at all the result of good budgeting. The wealthy are trying to bank capital gains before the Bush tax cuts expire. That's really all there is to it.
 
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