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Thu Jan 3, 2013, 04:12 PM

California Voters Get California Back on Track

Since the November election, I am noticing more and more positive reports on the state of California's fiscal health.

In reading this report, please remember to cut California some slack. Although our state budget is always a massive financial entity, it is a budget that must provide for over 37 million people!

Apparently one of the reasons for California getting back on track was that in November 2012, the voters approved Proposition Thirty. This measure received approval from the fifty percent majority necessary for the tax hikes to go into effect. It increases the state retail sales tax by one quarter percent. It also ups the tax rates of people who make over a quarter of a million dollars a year. Due to this surge in state revenue, students at California State University system will be getting tuition refunds!

Looking back to last May, the deficit in California had increased by unexpected amounts. The situation was rather dire. Witness this account from the Sacramento Bee:
"The Democratic governor says the general fund deficit has mushroomed from $9.2 billion to $15.7 billion. Most of the widening gap comes from acknowledging that his previous forecast was too optimistic, a concern that economists voiced during the summer of 2011."
Read more here: http://www.sacbee.com/2012/05/15/4490013/optimistic-projections-led-to.html#storylink=cpy

Now for what is going on currently -

http://abclocal.go.com/kabc/story?section=news/politics&id=8877651

SHERMAN OAKS, LOS ANGELES (KABC) -- California voters have spoken loud
and clear when it comes to education funding. They are willing to pay
more in taxes to avoid major budget cuts from kindergarten to college.

With 100 percent of precincts' reports, 54 percent of voters support
Proposition 30. The measure was aggressively backed by Gov. Jerry Brown.
"We are now living within our means because of the cuts and because of Prop
30," Brown said during a Wednesday news conference. "That money will pay down
debt, and then with the economic recovery, it will create more and more money
per child in the classroom."

Proposition 30 was close throughout election night, and it did not receive
the 50 percent majority until 3 a.m. Wednesday. But now that it has been
approved, starting in January, Californians will be paying an additional
quarter-cent in sales tax for the next four years. It will also raise the
income tax on people who earn more than $250,000 for seven years.

Parents were very happy that Prop 30 passed. "This money is going to do a lot
for the classroom, for the students to be in school the full year," said parent
Christina Concidine. The passage of prop 30 is having immediate effects.

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Response to truedelphi (Original post)

Thu Jan 3, 2013, 04:16 PM

1. public employee unions in California worked hard to get Prop 30 passed...

...and Prop 32 defeated. Unions work!

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Response to mike_c (Reply #1)

Thu Jan 3, 2013, 04:18 PM

2. You'll never get any argument from me on that. n/t

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Response to truedelphi (Original post)

Thu Jan 3, 2013, 04:52 PM

3. This is what you get in a Democratic state

Democrats in my state have complete control over the legislature and governor's office.

Republicans can no longer hold us back. We're still digging out from Wilson's disaster and Arnold only made it worse.

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Response to truedelphi (Original post)

Thu Jan 3, 2013, 06:23 PM

4. I am already getting a good feeling about 2013 in CA. I feel very slightly optimistic about the

economy just based on how my little business is doing since the new year began.

I know. I shouldn't let 2 days get my hopes up. But I just get a funny feeling that people are done holding their collective breaths - ove what, I'm not even sure.

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Response to truedelphi (Original post)

Thu Jan 3, 2013, 06:26 PM

5. I wish I could share in your optimism, but honestly I don't think Prop. 30 is strong enough medicine

 

The estimates of future revenues and deficits change almost daily. Usually the news is that things are worse than people thought previously.

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Response to slackmaster (Reply #5)

Thu Jan 3, 2013, 06:33 PM

6. I agree plus I think that money will end up in places it was

never intended for, that's what usually happens.

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Response to Raine (Reply #6)

Fri Jan 4, 2013, 09:42 AM

7. A literal train wreck, in the case of California

 

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Response to slackmaster (Reply #5)

Fri Jan 4, 2013, 03:21 PM

8. I so rarely get to have a parade, and

Now you have rained on it!

But Truth needs to be told at all times.

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