California Healthline: State Budget

Poll: Brown's Approval Rating Dips, But Support for Tax Hike Plan Rises

Fri, 25 May 2012 08:00:00 GMT

A recent poll shows that Gov. Brown's job approval rating has fallen since April, but support for a compromise tax hike plan by Brown and backers of the "Millionaires Tax" has increased slightly. According to the poll, 56% of likely voters now support the plan. Sacramento Bee.

State Proposes Delaying Start Date For Budget Cuts

Fri, 25 May 2012 08:00:00 GMT

The state is planning to delay the starting date for budget cuts by switching implementation from the start of the year to calendar year, according to a Department of Health Care Services summary of possible changes to trailer bill language for the May budget revision.

That's one of many revisions outlined in the summary. The DHCS changes reflect input and concerns from stakeholders.

Calif. School Boards Endorse Two Rival Tax Hike Plans

Wed, 23 May 2012 08:00:00 GMT

In a statement released this week, the California School Boards Association endorsed two competing tax hike initiatives -- the compromise tax hike proposal by Gov. Brown and supporters of the "Millionaires Tax," and the tax hike proposal by Los Angeles civil rights attorney Molly Munger. CSBA Executive Director Vernon Billy said that while "each initiative presents a different funding scenario for our schools, the bottom line is that both will generate billions of dollars in much-needed revenue for public education." Sacramento Bee's "Capitol Alert."

Brown's Reorganization Plan Approved by Little Hoover Commission

Wed, 23 May 2012 08:00:00 GMT

The Little Hoover Commission has endorsed Gov. Brown's plan to reorganize the state government. The plan would reduce the number of state agencies from 12 to 10 by consolidating some departments and eliminating others. Sacramento Bee's "The State Worker," Imperial Valley News.

Brown Urges Business Leaders To Support Budget, Tax Plan

Wed, 23 May 2012 08:00:00 GMT

During an address to the California Chamber of Commerce on Tuesday, Gov. Brown urged business leaders to support his revised fiscal year 2012-2013 budget plan and tax hike measure. He warned that if the tax hike measure is not approved, more cuts to services will be necessary. San Jose Mercury News et al.

Democrats Likely To Spurn Four Key Proposals in Brown's Budget

Tue, 22 May 2012 08:00:00 GMT

Democratic lawmakers likely will disagree with four key proposals in Gov. Brown's revised budget plan that call for cutting CalWORKs, In-Home Supportive Services, child care subsidies and financial aid for certain college students. San Francisco Chronicle.

LAO Takes Issue With Brown's Budget Furlough Proposal

Mon, 21 May 2012 08:00:00 GMT

A proposal in Gov. Brown's revised fiscal year 2012-2013 budget plan to shift most state workers -- including state hospital employees -- to a four-day, 38-hour workweek would create some serious problems, according to an analysis released Friday by the Legislative Analyst's Office. According to LAO, the plan would deter employees from using much of their leave, which would increase the state's deferred costs; would affect intergovernmental agency interactions; and may not reduce energy costs. Sacramento Bee's "The State Worker."

LAO Says Budget Deficit Likely Higher Than Gov. Brown's Recent Estimate

Mon, 21 May 2012 08:00:00 GMT

A new report by the Legislative Analyst's Office projects that the state budget deficit is larger than Gov. Brown's recent estimate of $15.7 billion. LAO indicated that the deficit could be higher than $17 billion. Sacramento Bee's "Capitol Alert," Sacramento Business Journal.

CalPERS Increases Contributions for State Employee Pensions

Fri, 18 May 2012 08:00:00 GMT

CalPERS has approved a 5.7% increase in payment rates for state worker pensions in the next fiscal year. The cost increase will be implemented over two years, a strategy that Gov. Brown calls "not a prudent decision." Sacramento Business Journal et al.

Steinberg Rebuffs S&P's Criticism of Accessing Budget Reserves

Thu, 17 May 2012 08:00:00 GMT

Senate President Pro Tempore Darrell Steinberg continues to support using state budget reserves to avoid making deep cuts to social services programs, despite Standard & Poor's call for lawmakers to avoid the strategy. Sacramento Bee's "Capitol Alert."

Calif.'s Nursing Homes Face Deep Medicare Payment Cuts

Thu, 17 May 2012 08:00:00 GMT

In early 2013, California's skilled nursing facilities could face Medicare payment cuts totaling $75.9 million -- the largest amount of cuts among all states -- if Congress fails to overcome an ongoing budget stalemate, according to a recent study commissioned by the Alliance for Quality Nursing Home Care. Those cuts would come on top of a state proposal to rescind a recent payment hike to close California's $16 billion budget deficit. Payers & Providers.

Healthy Families, Seniors Initiatives Questioned

Thu, 17 May 2012 08:00:00 GMT

In the governor's May budget revision released this week, in addition to $2.5 billion in new cuts to health care in California, there were a couple of proposals that raised big red flags for many health care advocates.

In particular, two budget items took a lot of heat: the effort to move about 1 million dual-eligible Californians into managed care programs; and the state's plan to move 870,000 children out of the Healthy Families program and into Medi-Cal care.

In both cases, advocates said the state is taking on way too much, too quickly -- putting the two most vulnerable populations in California at real risk.

O.C. Official Touts Balanced County Budget Proposal

Wed, 16 May 2012 08:00:00 GMT

Orange County Budget Office Director Frank Kim says that the $5.6 billion fiscal year 2012-2013 county budget plan is balanced and free of major cuts. However, he warns that three factors could alter the plan: the overall economy, the state budget crisis and pending lawsuits and claims against the county. KPCC's "KPCC News."

Revised Budget Would Affect Central Valley Health Care

Wed, 16 May 2012 08:00:00 GMT

Gov. Brown's revised fiscal year 2012-2013 budget plan includes deeper cuts to health and welfare programs than his initial proposal, some of which would affect hospitals and social service agencies in the Central Valley. For example, Kaweah Delta Medical Center would lose $16.6 million, or about 14.5% of its Medi-Cal revenue, in the next fiscal year under the revised budget plan, according to Kaweah Delta CEO Lindsay Mann. Fresno Bee.

S&P Rejects Lawmaker's Proposed Strategy To Access Budget Reserves

Wed, 16 May 2012 08:00:00 GMT

Standard & Poor's recommends that lawmakers forgo Senate President Pro Tempore Darrell Steinberg's idea to use state budget reserves to aid social service programs. S&P says that lawmakers should pursue "credible" budget solutions. Sacramento Bee's "Capitol Alert."

Senate Committee Rejects Care Changes

Wed, 16 May 2012 08:00:00 GMT

The Senate Budget Subcommittee on Health and Human Services last week voted to reject a proposal to change some nursing home and hospital regulations.

That happened before this week's release of Gov. Jerry Brown's new budget proposal that includes a slew of budget reductions to hospitals and nursing homes.

Hearings on the latest round of cuts -- including $2.5 billion in reductions to health care programs in California -- are scheduled to start today when the Assembly Budget Subcommittee on Health and Human Services holds its first budget revise hearing. According to chair Holly Mitchell (D-Los Angeles), it will be the 18^th hearing of that subcommittee this year alone.

Columnist: New Budget Plan a Political Pitch for Tax Hikes

Wed, 16 May 2012 08:00:00 GMT

In an Orange County Register opinion piece, columnist Dan Walters argues that Gov. Brown's revised fiscal year 2012-2013 budget plan "is as much a political document as a fiscal one, clearly aimed at persuading voters to approve new sales and income taxes next November." Walters also suggests that "[Brown's] goal, quite obviously, is to prove to voters that he isn't just asking them to pay more taxes, but is also slashing health and welfare services" and other spending categories. Orange County Register.

LAO Revenue Forecast Close to Gov. Brown's Latest Estimates

Wed, 16 May 2012 08:00:00 GMT

The Legislative Analyst's Office says its revenue projections for California are similar to those included in Gov. Brown's revised budget plan. Previously, LAO had found the projections included in Brown’s initial budget plan to be too optimistic. Sacramento Bee's "Capitol Alert."

Editorial Urges Honest Talk of State Budget Problems

Tue, 15 May 2012 08:00:00 GMT

A Contra Costa Times editorial argues that most state budget analyses lack an understanding that "California is broke." The editorial notes that policymakers "could raise taxes, cut loopholes, tax Big Oil, slash welfare, cut pensions" or "lay off state workers," but the "truth is, it doesn't matter how many ways the governor and Legislature readjust the mirrors and redirect the smoke: The money is not there." It concludes that "the sooner we have an honest discussion to set our priorities, the sooner we can get a grip on our state budget." Contra Costa Times.

Brown Calls for Deeper Health Program Cuts in Revised Budget

Tue, 15 May 2012 08:00:00 GMT

Gov. Brown has released his revised budget plan for the next fiscal year. The plan includes deeper Medi-Cal and In-Home Supportive Services cuts than his original plan and maintains proposed cuts to welfare and child care programs. Sacramento Bee's "Capitol Alert" et al.

May Budget Revise Hits Health Care Hard

Tue, 15 May 2012 08:00:00 GMT

Health care reductions made up more than one-third of the additional $6.5 billion Governor Jerry Brown (D) needed to trim since the last budget proposal in January. Five months ago, the governor was only staring down a $9.2 billion deficit. Now it's estimated at $15.7 billion.

Brown's new proposal released yesterday included about $2.5 billion in cost reductions to health care programs.

The plan calls for new cuts for hospitals and nursing homes, more cutbacks in Medi-Cal services and another reduction to In-Home Supportive Services.

California Budget Deficit Has Grown to $16B, Brown Says

Mon, 14 May 2012 08:00:00 GMT

Gov. Brown has announced that California's budget deficit has increased to $16 billion, significantly higher than the $9.2 billion he estimated in January. The governor plans to release his May budget revision today. Sacramento Bee's "Capitol Alert" et al.

New Budget to Hit Health Care Programs?

Mon, 14 May 2012 08:00:00 GMT

Before Governor Jerry Brown (D) came out with the January budget, some in the health care community speculated that new budget cuts wouldn't hit health programs -- because there wasn't much left that could be cut back.

But that proved untrue, when reductions hit Medi-Cal, Healthy Families and In-Home Supportive Services.

May Budget Revise Hits Health, Human Services

Mon, 14 May 2012 08:00:00 GMT

Governor Jerry Brown's May revision of the state budget released this morning includes about $2.5 billion in cost-saving measures to health care programs.

"They're pretty serious cuts," Brown said today. "Cuts to Medi-Cal, to hospitals, to nursing homes, to CalWORKS, this is all very real. But California has been living beyond its means, and it has to be balanced at the day of reckoning. This is the day of reckoning."

According to the Democratic governor's proposed budget, $1.2 billion in cost-reduction will come from Medi-Cal, about $880 million from CalWORKS, $225 million from In-Home Supportive Services and about $161 million from other health care programs, such as the AIDS Drug Assistance Program.

Steinberg Praises Negotiations on State Employee Cost Cuts

Fri, 11 May 2012 08:00:00 GMT

On Thursday, Senate President Pro Tempore Darrell Steinberg indicated his support for Gov. Brown's efforts to discuss with state employee union leaders additional workers' compensation cuts. Brown is expected to outline a reduction of at least 5% in state worker costs in his revised fiscal year 2012-2013 budget plan that is scheduled to be released on Monday. Sacramento Bee's "The State Worker."

Sacramento's Access Leisure Program on Chopping Block

Fri, 11 May 2012 08:00:00 GMT

On May 15, the Sacramento Department of Parks and Recreation will deliver to the city council a budget plan that includes a proposal to end the city's Access Leisure program for adults and teens with developmental disabilities. The program's budget faces a shortage of more than $360,000 after raising only about $44,300 through fundraising and attendance fees. Sacramento Bee.

Brown Submits Voter Signatures Supporting Compromise Tax Plan

Fri, 11 May 2012 08:00:00 GMT

Gov. Brown has begun submitting voter signatures in support of a compromise tax hike plan. He is expected to submit a total of about 1.5 million signatures statewide to qualify the measure for the November ballot. He said the tax plan will help the state avoid dire cuts. Sacramento Bee.

State Loses Bid To Cut FQHC Rates, Restructure Pay System

Thu, 10 May 2012 08:00:00 GMT

Two budget subcommittees recently rejected an attempt by the state Department of Health Care Services to rework the way it pays federally qualified health centers and rural health clinics. The proposal included a funding cut of 10%, or about $100 million, to those centers.

Brown Administration Plans To Cut State Worker Costs by $750M

Thu, 10 May 2012 08:00:00 GMT

Officials from Gov. Brown's administration have met with union leaders to discuss strategies for making $750 million in cuts to state worker costs, such as raising worker contributions to health care benefits. Sacramento Bee's "The State Worker," Los Angeles Times' "PolitiCal."

Supporters of Munger's Tax Hike Plan Submit 830,000 Signatures

Tue, 08 May 2012 08:00:00 GMT

Supporters of Molly Munger's tax hike plan have submitted 830,000 signatures to election officials, which should be enough to qualify the initiative for the November ballot. Munger said a cooperative campaign with supporters of a rival tax plan from Gov. Brown is possible. KPCC's "KPCC News," Sacramento Bee.

Gov't Reform Group Submits Signatures for Ballot Measure

Tue, 08 May 2012 08:00:00 GMT

On Monday, the California Forward Action Fund announced that it has submitted more than 1.2 million voter signatures to place on the November ballot a constitutional amendment requiring the state to adopt a two-year, performance-based budget cycle. The proposal also includes legislative transparency measures and a new process for local governments to opt out of state rules. More than 50 groups last week signed a letter warning that they will form an opposition campaign if the proposal makes it onto the ballot. Sacramento Bee's "Capitol Alert."

Report: Recession Fuels $70B Jump in Medicaid Spending

Mon, 07 May 2012 08:00:00 GMT

A Kaiser Family Foundation report finds that Medicaid spending increased from $330 billion in fiscal year 2007 to $400 billion in FY 2010, partly because of increased unemployment and lower incomes during the recession. Reuters.

Group Submits Signatures for Out-of-State Business Tax Plan

Mon, 07 May 2012 08:00:00 GMT

An environmental group led by hedge fund manager Tom Steyer has submitted more than 900,000 signatures to qualify for the November ballot a measure that would increase taxes on out-of-state businesses. The measure would raise about $1 billion annually for schools and green building projects. Proponents of two other tax hike proposals said they also have collected enough signatures to place their initiatives on the November ballot. Sacramento Bee, Sacramento Bee's "Capitol Alert."

GOP Declares Opposition to Gov. Brown's Compromise Tax Plan

Fri, 04 May 2012 08:00:00 GMT

California GOP leaders have voiced opposition to a compromise tax plan by Gov. Brown and backers of the "Millionaires Tax." Republicans say it would drive businesses and residents out of the state. Sacramento Bee, Sacramento Bee's "Capitol Alert."

Editorial Urges Munger To Drop Tax Hike Proposal

Fri, 04 May 2012 08:00:00 GMT

A Los Angeles Times editorial argues that having two tax hike proposals on the November ballot "would make it less likely that voters would approve either one." It adds, "That might delight anti-tax activists, but it's a worst-case scenario for public schools, universities, courts and the state's tattered safety net." The editorial concludes that a compromise tax hike proposal developed by Gov. Brown and supporters of the "Millionaires Tax" "is a better fit for the state's needs today" and that attorney Molly Munger, who is pushing a competing tax plan, "should stand down." Los Angeles Times.

Backers of Munger's Tax Plan Begin Submitting Signatures

Fri, 04 May 2012 08:00:00 GMT

On Wednesday, supporters of a tax hike proposal by civil rights attorney Molly Munger said they were delivering 241,049 voter signatures to elections officials in Los Angeles County. Roughly 504,000 valid signatures are required to qualify the measure for the November ballot, but supporters of Munger's proposal hope to provide a total of 775,000 voter signatures. Sacramento Bee's "Capitol Alert."

Steinberg Says Low Revenues Will Force More Budget Cuts

Thu, 03 May 2012 08:00:00 GMT

On Wednesday, Senate President Pro Tempore Darrell Steinberg said the Legislature must make additional spending cuts this year to address disappointing revenues, which already are $3 billion below the projections included in Gov. Brown's fiscal year 2012-2013 budget plan. Steinberg said Democrats will seek reductions that "attempt to minimize" the effect on "people who are most in need." KPCC's "KPCC News."

Editorial Raises Concerns About 'Budget Gimmicks'

Thu, 03 May 2012 08:00:00 GMT

On Tuesday, credit rating agency Standard & Poor's warned that California's state leaders might attempt "to use gimmicks to pass a state budget this year," the "kind of habitual budget trickery" Gov. Brown "vowed would not happen on his watch," according a Ventura County Star editorial. In response to the report, Senate President Pro Tempore Darrell Steinberg said lawmakers "are prepared to make the tough decisions required to balance a credible budget on time." However, "Both S&P and recent history suggest that the nation's highest-paid state legislators aren't up to the challenge," the editorial concludes. Ventura County Star.

Standard & Poor's Expresses Concern Over California Budget

Wed, 02 May 2012 08:00:00 GMT

Rating agency Standard & Poor's is raising concerns about the fiscal implications of lower-than-expected April tax revenues and a ruling that the state controller cannot withhold lawmakers' pay based on budget quality. Sacramento Bee's "Capitol Alert."

Community Dental Clinics Struggle To Provide Services

Wed, 02 May 2012 08:00:00 GMT

Since California lawmakers cut non-emergency dental services for low-income and disabled residents three years ago, community dental clinics have struggled to cover preventive services. In addition, the clinics have had difficulty finding specialists to perform more advanced dental procedures at a not-for-profit rate. HealthyCal.

Study Finds Preventable Chronic Ailments Cost CalPERS Millions in 2008

Tue, 01 May 2012 08:00:00 GMT

A new study finds that CalPERS could have saved up to $54 million in 2008 if members did not have as many preventable health conditions. Various groups have launched a program aimed at improving public workers' health. AP/Sacramento Bee, Sacramento Bee's "The State Worker."

Opinion: Tell Gov., Legislature 'No More Mental Health Cuts'

Tue, 01 May 2012 08:00:00 GMT

In a Ventura County Star opinion piece, Ratan Bhavnani -- executive director of the National Alliance on Mental Illness' Ventura County affiliate -- argues that "there is a high cost" to cutting funding for mental health services, noting that the "burdens only get shifted elsewhere." The Republican state budget plan includes "a $1.3 billion diversion of voter-approved Mental Health Services Act funds to help balance the state budget," Bhavnani writes. He concludes, "tell the governor and the Legislature: please, no more mental health cuts. It's time to protect and strengthen mental health care." Ventura County Star.

Income Tax Revenue in April Falls More Than $2B Short of Projections

Tue, 01 May 2012 08:00:00 GMT

According to the state controller, revenue from personal income taxes in April was more than $2 billion below Gov. Brown's expectations. Brown projected that the state would receive $9.13 billion during the month, but new data show that it received $6.74 billion. Bloomberg et al.

Munger Continues Moving Forward With Tax Hike Plan

Mon, 30 Apr 2012 08:00:00 GMT

On Saturday, Los Angeles civil rights attorney Molly Munger said her tax hike proposal -- which would raise income taxes to support education programs -- would benefit children more than the compromise tax hike proposal developed by Gov. Brown and supporters of the "Millionaires Tax." Despite calls from Brown's supporters to drop her proposal, Munger said she will deliver the 504,000 signatures required to qualify her plan for the November ballot. Riverside Press-Enterprise.

Editorial: Tobacco Companies Distorting Facts on Prop. 29

Mon, 30 Apr 2012 08:00:00 GMT

A Sacramento Bee editorial states that the tobacco industry is waging a "misinformation campaign" by attempting "to convince [voters] that doctors actually oppose Proposition 29," a June ballot initiative that would increase California's tax on cigarettes by $1 per pack to raise funds for cancer research. The editorial adds that voters "should do their research and make up their own minds" because the industry "will use every distortion to keep selling their deadly products." Sacramento Bee.

Poll: Slight Majority of Voters in Favor of Brown's Tax Plan

Thu, 26 Apr 2012 08:00:00 GMT

A recent Public Policy Institute of California poll finds that 54% of likely state voters support a compromise tax hike proposal developed by Gov. Brown and supporters of the "Millionaires Tax," while 39% oppose the proposed ballot measure. Meanwhile, about 60% of respondents expressed opposition to increasing income tax to support education programs, which attorney Molly Munger proposed in a competing tax hike plan. Sacramento Bee, U-T San Diego.

LAO: State Likely Will Be a 'Few Billion' Short of Budget Projections

Thu, 26 Apr 2012 08:00:00 GMT

California likely will be a "few billion dollars" short of budget projections after all April tax revenues are collected, according to analysts. Gov. Brown projected that the state would collect $9.4 billion this month in personal income taxes. Sacramento Bee's "Capitol Alert."

Final Ruling: State Controller Cannot Dock Lawmakers' Pay

Thu, 26 Apr 2012 08:00:00 GMT

A Sacramento judge has finalized a ruling that the state controller cannot block lawmakers' pay for passing an unbalanced budget. Lawmakers sued the controller for withholding their pay last summer. Sacramento Bee's "Capitol Alert," KPCC's "KPCC News."

Judge Tentatively Rules Chiang Cannot Dock Lawmakers' Pay

Wed, 25 Apr 2012 08:00:00 GMT

A Sacramento judge has issued a tentative ruling that State Controller John Chiang cannot block lawmakers' pay if he deems that they have passed an unbalanced budget. Lawmakers sued Chiang for withholding their pay last summer. Sacramento Bee et al.

Columnist: Democrats Looking 'Under Every Fiscal Rock'

Wed, 25 Apr 2012 08:00:00 GMT

Sacramento Bee columnist Dan Walters writes that "[w]ith the state budget mired in deficits," Gov. Brown and state legislators "are searching under every fiscal rock for money to spend," adding that one source of funding "could be several billion dollars a year in 'cap-and-trade' fees that industries must pay as part of the state's anti-greenhouse gas crusade." He notes that those funds "could be indirectly captured to offset state budget deficits by allocating them to existing state operations tied to carbon reduction, thus freeing up money for other areas facing cuts, such as health and welfare services." Sacramento Bee.

Assembly Committee Will Not Act on GOP Pension Reform Bills

Wed, 25 Apr 2012 08:00:00 GMT

A letter from the chair of the Assembly pension committee says the panel will not act on GOP pension reform bills. The letter says that the bills are under the purview of a conference committee. Sacramento Bee's "The State Worker."

Report Identifies $7.3B in Operational Savings, Revenue Increases

Tue, 24 Apr 2012 08:00:00 GMT

A new California Taxpayers Association report outlines $7.3 billion in operational savings and non-tax "revenue enhancements" in state and local governments. The findings could help critics of tax hike plans developed for the November ballot. Sacramento Bee's "Capitol Alert."

Calif. Grapples With Rising Public Retiree Health Care Costs

Mon, 23 Apr 2012 08:00:00 GMT

State and local governments are facing increasing retiree health care costs, which are projected to double over the next 10 years. The costs have increased over the last decade from $560 million annually to a projected $1.7 billion in the next fiscal year. AP/Sacramento Bee.

Census Bureau Revises Report on California's Tax Revenues

Fri, 20 Apr 2012 08:00:00 GMT

On Tuesday, the U.S. Census Bureau announced that it has amended a recent report on California's tax revenues to reflect "a calculation error that cause California's sales tax to be overstated by $6.4 billion." The revised report states that tax revenues increased by 11.3% to $116.7 billion in fiscal year 2010-2011, the sixth highest jump among all states. Sacramento Bee's "Capitol Alert."

State's Budget Deficit Likely To Exceed $10B, Brown Says

Wed, 18 Apr 2012 08:00:00 GMT

On Tuesday, Gov. Brown said California's budget deficit likely will increase by $1 billion or more above the $9.2 billion his administration projected in January. Brown attributed the higher deficit to court challenges, lower-than-expected tax revenues and other factors. Los Angeles Times' "PolitiCal."

Brown Wants To End Wasteful Spending on 718 State Reports

Wed, 18 Apr 2012 08:00:00 GMT

On Tuesday, Gov. Brown announced a plan to eliminate the production of 718 bureaucratic reports that he believes are unnecessary. Legislative action is needed to eliminate 375 of the reports, while the Brown administration will end the other 343. The governor's office did not specify how much money would be saved through the plan, but Brown spokesperson Elizabeth Ashford said eliminating the reports would result in "significant savings in terms of employee productivity, and printing and distribution costs." Los Angeles Times' "PolitiCal," Sacramento Bee's "Capitol Alert."

Compromise Tax Plan's Supporters Seek Help From Legislative Staff

Tue, 17 Apr 2012 08:00:00 GMT

Proponents of a tax hike proposal developed by Gov. Brown and backers of the "Millionaires Tax" are seeking help from Democratic staff members in the Legislature to collect more than 800,000 signatures in support of the plan by next month. Sacramento Bee's "Capitol Alert."

Columnist Warns Effect of Tax Hike Plans Largely Unknown

Tue, 17 Apr 2012 08:00:00 GMT

Sacramento Bee columnist Dan Walters argues that while Californians "will be inundated with claims, counterclaims and other forms of propaganda" by the proponents of tax hike proposals over the next few months, voters "won't hear much about the actual impacts of changing the tax system" because the proponents will "as usual, appeal to emotion, not reason." Sacramento Bee.

Analysis: March Revenues $236M Below Expectations

Tue, 17 Apr 2012 08:00:00 GMT

California's revenue in March was about $236 million below estimates by Gov. Brown, according to an analysis released Friday by the California Department of Finance. The findings differ slightly from a recent analysis by State Controller John Chiang, but both reports found that state revenues are below projections. Orange County Register's "Total Buzz."

Gov. Brown Says Deficit Could Be Bigger Than Estimated, Calls for Cuts

Mon, 16 Apr 2012 08:00:00 GMT

In a radio interview last week, Gov. Brown said that California's budget deficit likely is higher than the $9.2 billion he previously estimated and that lawmakers must make cuts to state services and collect more tax revenue to address the shortfall. Sacramento Bee's "Capitol Alert," Los Angeles Times' "PolitiCal."

Calif. Lawmakers Look at Tax Returns To Gauge Revenue

Mon, 16 Apr 2012 08:00:00 GMT

California lawmakers are monitoring state Controller John Chiang's daily tracker of income tax returns for indications of how much tax revenue the state will collect this year. As of April 11, the state had collected $1.27 billion, compared with slightly more than $1 billion on April 11, 2010. Sacramento Bee's "Capitol Alert."

Report: Calif. Sees Big Jump in Tax Revenues Last Year

Fri, 13 Apr 2012 08:00:00 GMT

A new Census Bureau report finds that California's tax revenues increased by 17.4% in fiscal year 2010-2011, the third highest jump among all states. The state's increase in tax revenues likely was the result of temporary sales and income tax increases that were enacted in 2009 but have since expired. Gov. Brown is pushing for a tax hike measure on the November ballot to restore those revenues. Sacramento Bee's "Capitol Alert."

Majority of Calif. Voters Support Compromise Tax Plan, USC Poll Finds

Fri, 13 Apr 2012 08:00:00 GMT

A new University of Southern California poll finds that 63% of respondents support a compromise tax plan from Gov. Brown and backers of the "Millionaires Tax." It finds that 24% of respondents support a competing plan by attorney Molly Munger. Sacramento Bee's "Capitol Alert."

Senate Republicans Send Letters Calling for a Vote on Brown's Pension Plan

Thu, 12 Apr 2012 08:00:00 GMT

Senate Republicans have sent letters to Gov. Brown and two pensions committee Democrats calling for a vote on the governor's pension reform plan this Friday. Republicans support the plan, but Democrats disagree with certain proposals. Sacramento Bee's "The State Worker."

California's March Revenues Fall $233.5M Short of Projections

Wed, 11 Apr 2012 08:00:00 GMT

California Controller John Chiang reports that March revenues were $233.5 million below expectations. Legislators are holding off on taking any action until Gov. Brown issues a revised budget plan. Sacramento Bee's "Capitol Alert," Capital Public Radio's "KXJZ News."

Brown's Proposed Cuts to IHSS Would Affect 254K Residents

Wed, 11 Apr 2012 08:00:00 GMT

Gov. Brown's proposal to cut state spending on In-Home Supportive Services by $207 million would affect about 254,000 beneficiaries statewide and would result in a loss of $424 million in county and federal funding, for a total reduction of $631 million, according to a new California Budget Project report. Sacramento Business Journal.

Legislators Consider Alternative to Brown's Pension Reform Plan

Tue, 10 Apr 2012 08:00:00 GMT

State legislators are looking at a pension reform proposal based on a plan offered by the California State Teachers' Retirement System. Some lawmakers are concerned that the pension proposal offered by Gov. Brown would open pensions up to significant losses. Los Angeles Times' "PolitiCal."

Opinion: Democrats Oppose Some of Brown's Budget Cuts

Tue, 10 Apr 2012 08:00:00 GMT

Ventura County Star columnist Thomas Elias writes that even though "legislative Democrats have large majorities in both the Assembly and state Senate," it "doesn't mean [they] will accept every budget proposal" that Gov. Brown issues. With his proposed fiscal year 2012-2013 budget plan, Brown is "tweaking the noses of well-established core Democratic constituencies, and they don't like it," according to Elias. Ventura County Star.

Brown, Unions Reach Tentative Labor Pacts To Extend Contracts

Tue, 10 Apr 2012 08:00:00 GMT

Gov. Brown has reached tentative agreements with four state worker unions to extend their existing contracts for another year. The agreements would push contract negotiations until after a potential November vote on Brown's compromise tax hike plan. Sacramento Bee's "The State Worker," Sacramento Bee.

Group Launches Campaign To Thwart Compromise Tax Plan

Tue, 10 Apr 2012 08:00:00 GMT

On Monday, the Howard Jarvis Taxpayers Association launched its "Don't Sign the Petition" campaign against the compromise tax plan developed by Gov. Brown and supporters of the "Millionaires Tax." HJTA President Jon Coupal said Brown's characterization of the plan as a tax on millionaires is misleading. Sacramento Bee.

Should California Reconsider Health Care Districts?

Mon, 09 Apr 2012 08:00:00 GMT

With the Affordable Care Act poised to dramatically change the state's health care system, should California be reconsidering special health care districts that generate and consume millions of dollars every year? We asked experts to weigh in.

Lawmakers To Address Proposed Budget Cuts, Pension Reform Plan

Mon, 09 Apr 2012 08:00:00 GMT

State lawmakers soon will consider making cuts to government programs and reforming the public pension system. Democrats have rejected some cost-cutting proposals in Gov. Brown's budget plan, as well as his pension reform plan. AP/San Francisco Chronicle.

Full Tax Compliance Could Solve State's Budget Deficit

Mon, 09 Apr 2012 08:00:00 GMT

California could close its $9.2 billion budget deficit if taxpayers paid what they owe, according to recent estimates. The California Franchise Tax Board estimates that $10 billion in state income taxes go unpaid annually, while the state Board of Equalization reports that an additional $2.3 billion in sales and uses taxes go unpaid each year. Sacramento Bee.

Education Officials Worry About Child Care Cuts in Brown's Budget

Thu, 05 Apr 2012 08:00:00 GMT

Education officials say proposed cuts to child care services in Gov. Brown's budget plan threaten a Pajaro Valley program that provides care to more than 550 children. Brown's budget also would shift oversight of the program from the state to the county. Santa Cruz Sentinel.

Brown Stops Collecting Voter Signatures for Initial Tax Plan

Thu, 05 Apr 2012 08:00:00 GMT

Gov. Brown has stopped collecting signatures for his original tax hike ballot measure because he is confident that the signature-gathering campaign for a compromise plan is progressing fast enough to qualify it for the November ballot, an adviser said. The compromise plan was developed by Brown and supporters of the "Millionaires Tax." Sacramento Bee's "Capitol Alert."

Gov. Brown Releases Reorganization Plan for Calif. Government

Tue, 03 Apr 2012 08:00:00 GMT

Gov. Brown has submitted a government reorganization plan to the Little Hoover Commission. The plan would reduce the number of state agencies by consolidating or eliminating certain departments. Sacramento Bee's "The State Worker," Sacramento Business Journal.

Calif. GOP's Budget Plan Would Cut Deficit With Health-Related Funds

Mon, 02 Apr 2012 08:00:00 GMT

State Republican legislators have released a budget plan that seeks to eliminate the deficit in part by taking funds from mental health and childhood development programs. The plan includes some proposals favored by Gov. Brown, but it does not seek new tax revenue. Sacramento Bee.

UCLA Report Predicts Better Employment Outlook for 2013

Fri, 30 Mar 2012 08:00:00 GMT

California's unemployment rate for 2012 is expected to average out at 10.8% and fall to an average of 9.8% in 2013, according to a UCLA Anderson Forecast released Wednesday. The report noted that health care is among the stronger job sectors. The latest prediction is an improvement over the 10.5% average unemployment rate that was forecast for 2013 in the December 2011 report. Contra Costa Times, San Francisco Business Times' "Morning Call."

California Teachers Association Gives $1.5M to Tax Hike Compromise

Thu, 29 Mar 2012 08:00:00 GMT

The California Teachers Association has donated $1.5 million to support a compromise tax hike initiative developed by Gov. Brown and backers of the "Millionaires Tax." The donation is the largest reported thus far for the compromise plan. Sacramento Bee's "Capitol Alert."

Opinion: 'Revenue Volatility' Central to Calif. Budget Woes

Tue, 27 Mar 2012 08:00:00 GMT

Sacramento Bee columnist Dan Walters argues that California's "revenue volatility" is central to the state's budget problems and would "worsen" under a compromise tax initiative developed by Gov. Brown and supporters of the "Millionaires Tax." Walters writes that until revenue volatility is reduced, "either through tax reform or a spending limit," budget problems will continue. Sacramento Bee.

California Democrats Reject, Stall on Brown's Proposed Budget Cuts

Tue, 27 Mar 2012 08:00:00 GMT

California Democrats are not taking steps to enact certain cuts in Gov. Brown's proposed budget plan, including a reduction to CalWORKs, the state's welfare-to-work program. Assembly Democrats have rejected certain cuts, and Senate Democrats are delaying action. Sacramento Bee.

Majority of Calif. Voters Support Compromise Tax Hike Plan, Poll Finds

Mon, 26 Mar 2012 08:00:00 GMT

A new poll surveying about 1,500 registered California voters finds that 64% said they support a compromise tax hike plan developed by Gov. Brown and backers of the "Millionaires Tax." According to the poll, about 33% of respondents said they oppose the plan. Los Angeles Times.

Court Denies Request To Allow Medi-Cal Pay Cuts While Lawsuit Continues

Mon, 26 Mar 2012 08:00:00 GMT

The 9th U.S. Circuit Court of Appeals has denied California's request to allow a 10% cut to certain Medi-Cal payments until a formal ruling is made in a lawsuit challenging the cuts. A federal judge in February granted a preliminary injunction to block the cuts. Sacramento Business Journal.

Report: State Expands Jails, Forgoes Cheaper Alternatives

Fri, 23 Mar 2012 08:00:00 GMT

A recent report by the American Civil Liberties Union of Northern California finds that California has allocated billions of dollars to build or expand jails as part of an initiative to reduce prison overcrowding. The report notes that the state has not pursued the cheaper alternatives called for under the state's prison realignment law, such as drug treatment and vocational training programs. San Jose Mercury News.

Judge: Calif. Violated Law by Not Disclosing Info on Medi-Cal Cuts

Thu, 22 Mar 2012 08:00:00 GMT

A superior court judge has ruled that the Department of Health Care Services violated disclosure law when it refused to provide background information on a proposed 10% cut to Medi-Cal payments. The judge ordered the state to release the information. Sacramento Bee's "Capitol Alert."

Editorial: Voters Should Reject Tax Hike Compromise

Thu, 22 Mar 2012 08:00:00 GMT

An Orange County Register editorial urges California voters to "decline" the compromise tax hike proposal developed by Gov. Brown and supporters of the "Millionaires Tax" because it would "further damage this overtaxed and over-regulated state." It adds that "the tax increases are accompanied by no real budget reforms, such as spending limitations." Orange County Register.

California Will Not Appeal Ruling Against First 5 Funding Shift

Wed, 21 Mar 2012 08:00:00 GMT

The state will not appeal a 2011 court ruling that rejected lawmakers' plan to shift $1 billion away from First 5 commissions. The commissions are seeking reimbursement for an estimated $586,000 in legal fees. California Watch.

Brown Says No Sign of Deal With Munger on Tax Increase Proposal

Wed, 21 Mar 2012 08:00:00 GMT

Gov. Brown said there is no tax deal in the works with Molly Munger, the proponent of a rival tax hike proposal. Brown also said a new compromise tax plan he has reached with backers of the "Millionaires Tax" would not lead to budget volatility. Sacramento Bee's "Capitol Alert."

State Attorney General's Office OKs Compromise Tax Plan for Circulation

Tue, 20 Mar 2012 08:00:00 GMT

Supporters of a compromise tax plan reached by Gov. Brown and backers of the "Millionaires Tax" have received clearance from the state attorney general's office to gather the more than 800,000 signatures required to put the measure on the November ballot. Sacramento Bee's "Capitol Alert."

LAO Notes Possible Challenges for Gov. Brown's Proposed IHSS Cuts

Tue, 20 Mar 2012 08:00:00 GMT

The Legislative Analyst's Office says cuts proposed by Gov. Brown for In-Home Supportive Services could face legal challenges and be difficult to implement. LAO is offering alternative cost-saving proposals. HealthyCal, Sacramento Bee's "Capitol Alert."

LAO: Compromise Tax Plan Would Yield Less Revenue Than Projected

Mon, 19 Mar 2012 08:00:00 GMT

The Legislative Analyst's Office estimates that a compromise tax plan reached by Gov. Brown and backers of the "Millionaires Tax" would yield about $6.8 billion in revenue next year, about $2 billion less than Brown projected. Sacramento Bee's "Capitol Alert."

Editorial: Brown Taking 'Real Risks' With Tax Compromise

Mon, 19 Mar 2012 08:00:00 GMT

A Sacramento Bee editorial argues that Gov. Brown "is taking some real risks" by agreeing to merge his tax hike proposal with a rival tax initiative. Unlike Brown's original plan, the merged proposal might draw opposition from business groups, the editorial states. It adds, "If Democrats want to avoid a crushing opposition campaign, they need to come to the table and negotiate real reforms to reduce California's long-term pension obligations." Sacramento Bee.

L.A. Attorney Gives $1.5M To Promote Her Tax Hike Plan

Fri, 16 Mar 2012 08:00:00 GMT

On Thursday, Los Angeles civil rights attorney Molly Munger contributed another $1.5 million of her own money into a campaign to qualify her tax hike proposal for the November ballot. The move came a day after Gov. Brown publicized a deal to merge his tax hike proposal with a rival tax initiative. Munger now has spent $3.4 million on her proposal. Sacramento Bee's "Capitol Alert."

Brown Reaches Compromise With Supporters of Rival Tax Hike Plan

Thu, 15 Mar 2012 08:00:00 GMT

Gov. Brown and backers of the "Millionaires Tax" have struck a deal to merge their competing tax hike proposals to increase its chance of approval. The new plan would raise $2.1 billion more than Brown's original proposal. San Francisco Chronicle et al.

Opinion: Brown Should Consider Merging Tax Plan

Wed, 14 Mar 2012 08:00:00 GMT

"Maybe it's time" for Gov. Brown to combine his tax hike proposal with two rival tax plans to ensure the initiatives do not cancel each other out on the November ballot, columnist Thomas Elias writes in a San Gabriel Valley Tribune opinion piece. Elias notes, "Rather than Brown expecting the other sponsors to abandon their efforts and simply sign onto his, it may be more realistic for him to adjust some of his proposal to fit into a compromise version of the others." San Gabriel Valley Tribune.

California's February Revenues Fall $146.3M Short of Projections

Tue, 13 Mar 2012 08:00:00 GMT

State Controller John Chiang reports that February revenues were $146.3 million below expectations. Lawmakers are waiting for tax revenues in March and April before considering cuts included in Gov. Brown's budget plan. Sacramento Bee's "Capitol Alert" et al.

Opinion Piece Slams Cuts to Services for Elderly, Disabled

Mon, 12 Mar 2012 08:00:00 GMT

In an opinion piece, Jonathan Glidden -- a retired attorney who was an aide to former state Sens. Rebecca Morgan and Tom Campbell -- and Nicki Pecchenino -- a former campaign consultant and chief of staff to Santa Cruz County Supervisor Robley Levy -- criticize Gov. Brown's proposed cuts to In-Home Supportive Services. They write, "The proposed savings of $1 billion may soon appear to be a poor bargain," adding, "The taxpayers of California will merely put money back into one pocket and take even more out of another, and everyone will then be the worse off for the bargain." Santa Cruz Sentinel.

Brown: Rival Tax Plans Would Not Solve Calif. Budget Issues

Fri, 09 Mar 2012 08:00:00 GMT

This week, Gov. Brown compared his tax hike proposal that he seeks to put on the November ballot with rival tax plans, saying his initiative is the only one that would solve the state's financial problems. He said the other plans do nothing to address budget shortfalls and may even cause bigger fiscal problems for the state. San Francisco Chronicle.

Poll Finds Slim Majority of Voters Support Gov. Brown's Tax Plan

Thu, 08 Mar 2012 08:00:00 GMT

A new poll finds that support among likely voters for Gov. Brown's tax plan has decreased to 52%. Some say rival plans could be having a negative effect on support for Brown's plan. Sacramento Bee's "Capitol Alert," AP/San Francisco Chronicle.

Donations Go to Committee Supporting Brown's Tax Plan

Thu, 08 Mar 2012 08:00:00 GMT

Gov. Brown has reported $631,000 in contributions to a committee supporting his tax hike proposal. More than 50% of the donations came from pipe trade and plumbers unions. Brown also recently reported $45,000 in contributions to his 2014 re-election committee. Sacramento Bee's "Capitol Alert."