Well, it's about damn time.
Now, of course, California will be stuck with open primaries - an issue that is so unrelated to budget reconciliation as to be delusional. But, just as with the Maine Sisters and Specter and the Obama Stimulus, a couple of "centrist" Republicans can pretty much completely hold the system hostage until they get their tiny little needs met.
Look at the bright side, at least California's K-12 educational system can now go back down to 50th in the country, where it belongs.
Here's the budget summary for those of you who are interested.
The Budget Act held spending essentially at the same level as spending in 2007‑08 and was less than $2 billion more than the 2006‑07 level, reflecting relatively flat spending growth for three years. Given the revenue decline and emergence of a $14.8 billion of current year General Fund Budget gap, the Governor has proposed savings
which, when combined with other adjustments, reduce spending from $103.4 billion to $92.4 billion. With the proposed program reductions, 2008‑09 General Fund expenditures will decrease by $11 billion from the 2008 Budget Act level, and then increase by 3.4 percent in 2009‑10 compared to the revised 2008‑09 expenditure estimate.
Here are a few minor highlights:
A decrease of $248 million for CAL FIRE’s emergency fire suppression expenditures. As a result of the severe summer lightning fires and additional Southern California wildfires in October 2008, CAL FIRE’s emergency fire costs are estimated to be $437 million in 2008‑09. The Budget proposes $189 million for CAL FIRE’s emergency fire expenditures in 2009‑10, which reflects the historical average of
firefighting costs over the past five years and additional federal reimbursements.
Yeah, that's a GREAT idea. Cut the wildfire first responder system by 60%. After all, it's not as if California has been having ANY problems in that area lately. Yep. That'll work.
State government spending cuts, effective immediately, include:
The major General Fund policy adjustments are as follows:
A decrease of $6.143 billion in 2009‑10 to reflect expenditure offsets provided by the securitization of future lottery revenues, including $5.0 billion in bond proceeds and $1.143 billion in lottery revenues. A corresponding increase of $6.143 billion from the Debt Retirement Fund is proposed to reflect the above General Fund offset.
A decrease of $4.7 billion in 2008‑09 to reflect expenditure offsets provided by the issuance of Revenue Anticipation Warrants in 2009‑10 for costs incurred in 2008‑09.
A decrease of $414.6 million in state employee compensation costs in 2008‑09 resulting from: two days furlough per month beginning February 1, 2009 ($375.8 million); elimination of two state holidays and premium pay for hours worked on holidays ($26.3 million); and computation of overtime pay based on actual time worked ($12.5 million).
A decrease of $1.006 billion in state employee compensation costs in 2009‑10 resulting from: two days furlough per month (one‑time, $901.8 million); elimination of two state holidays and premium pay for hours worked on holidays ($74.5 million); and the computation of overtime pay based on actual time worked ($30 million).
So it looks like the state furloughs are here to stay for some time. Still, it beats laying people off in droves.
Here's the prettiest cut - and insurance that California's K-12 system will once again occupy the 50th rung in the state list of educational quality:
The major General Fund policy adjustments for K‑12 entities are as follows:
A cost avoidance of $2.5 billion for statutory and discretionary cost‑of‑living adjustments for K‑12 education programs.
A decrease of $1.5 billion to school district and county office of education revenue limits to bring Proposition 98 funding to the minimum guarantee for 2009‑10.
A decrease of $1.1 billion commensurate with allowing school districts to reduce the school year by five days.
This is the clause that is the msot regressive in the entire bill - the sales tax hike.
Temporary Sales Tax Increase: Effective
March 1, 2009, the General Fund Sales and
Use tax rate would be temporarily increased
by 1.5 cents, from 5.0 percent to 6.5 percent.
The proposed tax rate increase would be in effect
through December, 2011. On January 1, 2012,
the General Fund Sales and Use tax rate would
return to 5 percent. This proposal is expected
to generate additional sales tax revenues of
$2.35 billion in 2008‑09 and $7.114 billion in
2009‑10 for the General Fund.
Yeah, it's temporary. Got that? Temporary. It goes away eventually. Uh huh.
Effective March 1, 2009, the sales and use tax would be extended to appliance and furniture repair, vehicle repair, and veterinarian services. Effective April 1, 2009, the sales and use tax rate
would be applied to amusement parks, sporting events, and golf. Selection of these services was based on ease of implementation as these services are generally provided by entities that already have a relationship with the Board of Equalization.
As to a major reason why revenues are tanking, the budget directors seem to be somewhat at a loss:
Property taxes received by school districts and reflected in the Department of Education and Community Colleges budgets are significantly below projections used for the 2008‑09 Budget. While a recent audit performed by the State Controller indicates
local allocations of revenues are being performed correctly, the audit did not provide clear indications regarding the reasons why school property tax receipts are less than estimated using assessed value growth. Estimates for the Governor’s Budget reflect
$474 million in lower actual receipts in 2007‑08 and that base is carried forward in subsequent years.
Down here on the ground, property values and commensurate tax levels are dropping. Anyone with half a brain cell is applying to their county assessor for downward adjustments to their tax assessment on their property. I know because I did this recently. As a result, my home was reassesed from $382,000 for the 2008 calendar year to $290,000.
MY loan amount was $280,000 along with an $80,000 down payment. So I can kiss THAT one goodbye.
My assessment for 2009 is still pending, and the assessor has already told me that I can expect another large downward adjustment.