California Budget Crisis Diaries: Living with the deficit until 2015
Hoa Quach - SDNN | Fri, 03/12/2010 - 11:51am | Login to bookmark or commentCalifornia Budget Crisis Diaries
Though California Controller John Chiang’s latest report shows an increase in revenue, one tax board representative said the Golden State won’t recover for another few years.
Here’s your Thursday collation of all things California budget-related.
Slow, slow recovery: A California tax board representative told one publication the state won’t recover from its budget deficit until 2015.
According to the Ukiah Daily Journal, the president of the California Board of Equalization made the comment earlier this week. But, she noted small signs of hope.
“According to Yee, the state has lost 1 million jobs since December 2007 and she doesn’t see significant recovery for some time.
She does, however, see hopeful signs in a slight increase in sales of existing homes, some hiring in Silicon Valley and also in the port of Long Beach which may signal an increase in exports.
‘But will they be sustained activity?’ was her question.
Consumer spending is still down and new housing construction is at a standstill. A jump in August 2009 sales taxes was due to the federal Cash for Clunkers used car trade in program and has not translated into any other consumer buying.
‘People who have money aren’t spending it, and a lot of people don’t have it,’ Yee said.”
But like any good government official, Yee notes “that the state is not alone” in its budget sorrows, highlighting other governments seeing the same pain
Another student protest: If state lawmakers thought students may quiet down a bit after the March 4’s Day of Action — they were mistaken.
Chico State held a rally against budget cuts Wednesday. But this time, protesters noted the impact education cuts would have on, not only their university, but their county.
According to a study reported on by The Orion, the “subsequent multiplier effect” found that with the reduction of 200 students to Chico State, “there were at least 97 fewer jobs and a loss of $5.2 million circulating in Butte County.”
“As Chico State is forced to tighten its belt, so must the rest of Butte County.
Though California Controller John Chiang’s latest report shows an increase in revenue, one tax board representative said the Golden State won’t recover for another few years.
Here’s your Thursday collation of all things California budget-related.
Slow, slow recovery: A California tax board representative told one publication the state won’t recover from its budget deficit until 2015.
According to the Ukiah Daily Journal, the president of the California Board of Equalization made the comment earlier this week. But, she noted small signs of hope.
“According to Yee, the state has lost 1 million jobs since December 2007 and she doesn’t see significant recovery for some time.
She does, however, see hopeful signs in a slight increase in sales of existing homes, some hiring in Silicon Valley and also in the port of Long Beach which may signal an increase in exports.
‘But will they be sustained activity?’ was her question.
Consumer spending is still down and new housing construction is at a standstill. A jump in August 2009 sales taxes was due to the federal Cash for Clunkers used car trade in program and has not translated into any other consumer buying.
‘People who have money aren’t spending it, and a lot of people don’t have it,’ Yee said.”
But like any good government official, Yee notes “that the state is not alone” in its budget sorrows, highlighting other governments seeing the same pain
Another student protest: If state lawmakers thought students may quiet down a bit after the March 4’s Day of Action — they were mistaken.
Chico State held a rally against budget cuts Wednesday. But this time, protesters noted the impact education cuts would have on, not only their university, but their county.
According to a study reported on by The Orion, the “subsequent multiplier effect” found that with the reduction of 200 students to Chico State, “there were at least 97 fewer jobs and a loss of $5.2 million circulating in Butte County.”
“As Chico State is forced to tighten its belt, so must the rest of Butte County.