Since the beginning of time choices must be made in any given situation. It has been said that tough times call for desperate measures. In the case study, California’s Governor Jerry Brown was faced with a $27 billion budget deficit. Governor Brown had to make some tough decisions in order to balance the state budget. This report will cover several questions. What decisions did California Gov. Jerry Brown have to make to balance the California State Budget? What specific steps did he need to take to do this? How did Gov. Brown respond to the criticism that he was harming the less fortunate by undertaking some of these measures? What other criticisms have been lodged my detractors? And what have been the results of these decisions in terms of California’s State Budget and on taxes on/services to different groups?
Governor Brown was facing a $27 billion deficit in the state of California. It was stated in the video that the tax revenue was not enough to reduce the budget. (California Gov. Jerry Brown On Balancing the State Budget 2013) In the budget process two types of information must be addressed for budgeting that is program and resource information.
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Brown had to decide how to balance the budget. He transferred inmates that were in overcrowded prisons to county jails. Funding was cut in areas of education offerings with the universities and colleges, schools personnel and programs, welfare programs by $5 billion dollars, and state workers were furloughed. (California Gov. Jerry Brown On Balancing the State Budget 2013) The governor had to raise the income taxes on the rich and increase sales taxes for everybody. Gov. Brown also had legislation to pass a law that the local redevelopment agencies would be closed. The redevelopment agencies were used to help cities with urban development. As a result of the later closing of 400 agencies, the monies that the local cities were receiving from property taxes were used to help fund the state budget. (Taggart
Similarly the republicans in the 2000’s were forced to face the unbalance of school funding. By 2002 the Republican Party had regained the governor’s office and further gained the majority the Texas state Senate and the House of Representatives. George W, Bush now governor of Texas was faced with the same issue of equalizing school funding, the Robin Hood Law was seen as unconstitutional causing a change in school funding. If the Texas state legislature failed to act on the issue of school funding the courts would cut of school funding. Governor Bush faced with a reduced states budget cuts roll back subsidies for state
The legislative framework of a country refers to the process of creating, utilization, and governing of laws. In the United States, the government of each of the 50 states is structured in accordance with their respective constitution and although not required, each are modeled after the federal government, consisting of the three branches: Executive, Legislative, and Judicial. Each of the state governments are also organized as a presidential system where the governor is the head of the state. Due to each state having their own governor as their representative, their legislative framework will vary with each state. For this paper, I will be comparing the legislative framework of Florida with the state of California.
The future of California is pretty good, for the state is projected to see growth in almost every sector of the economy as well as the population, but there are many concerns that must be addressed first in order to see California’s growth come to fruition. International trade and business is one of California’s largest industries and it’s expected to continue increasing, for many emerging economies are also located off of the Pacific Ocean. Growth in the economy is good, but requires resources that California has a limited supply of. The main resource California always needs is water, since most of the state’s population resides in the southern regions, which are arid and receive minimal precipitation annually. The state is planning on improving efficiency and the aqueduct system to increase the water supply while decrease the environmental effects California’s aqueduct’s have on regions like the San Joaquin River Delta. For many years California has been considered a very liberal and left state, which is due to the fact that the state has the toughest environmental legislation in the country. With such strong legislation ensuring the protection of the environment California has become a model state in the fight against climate change, and must remain vigilant for there are numerous species endemic to the state that are found nowhere else on the planet. Though there are numerous other factors’ affecting California’s future these are some of the most interesting areas to
The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit, in which expenditures in the budget exceeds revenues that were estimated. State and local governments are required to balance their budgets. The federal government is allowed to borrow money to meet its obligations and have a deficit. The federal government collects the most tax revenue, but state and local governments have a greater range of revenue options for funding their budgets. The federal government relies mainly on income taxes, capital gains and Social Security taxes. State and local governments collect sales taxes, taxes on fuel, property taxes and fees from special licenses and permits. Also, many state and local
Due to financial issues, any districts hardest hit had no choice but to move around resources to make up the difference in their actual spending and funds provided by the state due to the Class Size Reduction (CSRe) experiment in California. While accountability was not intended to so strongly influence what
Our governor along with many other people in our state, recognize that our tax system is biased, unethical, and needs reform. Governor
There are some differences and similarity between the State and Federal budget. The Federal budget is bigger than the State budget. The federal government have the sovereign bank. The Federal government have the ability to print additional money when the need arises. The federal budget needs not balance revenues and expenditures for each fiscal year. At the subnational level, appropriations must not exceed revenues in the State budget. This creates restriction which is mandated for almost all the state and local finances. “This imposes a discipline at state and local government which the federal government may chronically evade. States cope by setting aside reserves in good years to hopefully cover deficits in bad revenue years” (n.d., 2012).
In the article “The New Normal” by David Brooks, he states that there are many issues involving the national budget that need to be addressed. Brooks first exclaims that in order to begin to solve the issues, the citizens of the nation need to make it so that everyone is affected by the different cuts. Not just one group of people. The author also states that we need to trim from the elderly to invest in the young considering many schools and their programs are experiencing sizable budget cuts due to lack of funding. The final law that Brooks discussed was that government officials should, under no condition, cut without an evaluation process.
In 2009, Roberts and Trounstein argued that California was "ungovernable" and “our state government did not have the capacity to make timely decision to solve the problems facing our state”. However, California is not ungovernable anymore. In past few years, California has many changes, which affect on the state legislature as well as change the ways Californians vote. People can name some changes as “Open” or “Jungle” Primary (Prop. 14), Citizen’s Redistricting Commission (Prop.11), Majority budget (Prop. 25), and enacted the “top-two” open primary. The Governor and the Legislature, in turn, gave up authority to solve problems that are better solved at a regional or community scale. Nowadays, California is one of the model of state government.
The first chapter of the book is an introduction to the economy, politics and people of California. It encompasses the economy, politics and demography of the state for the past, present and the future. The edition features updated demographic information of the state from the census that took place in 2010. The chapter explains the state’s transition from colonization to rebellion and statehood. It discusses California’s past, including the great depression, political turmoil, infrastructure, workingmen’s party and World War II. The growth, reform and progressive change of the state to what it is today is also highlighted in the book. California previously faced budget deficits
This budget contains grants, reimbursements from schools, and payments that is from schools. $72.9 billion was set aside for public and higher education institutions. Most of the money is difficult to get if it is for a project that it was not intended for. Since the legislature cannot take money out of these two accounts when they would like, they just cut the budget. This is to give them more wiggle room in other areas that they would like to see the budget go to. There is a cycle that can be seen throughout the government. If the state wants money they need to spend what they have in order to receive federal
As taxpayers, people are required to pay imposed taxes and derived taxes. Since payments are not voluntary as opposed to nonprofits, people want to know where the government currently stands, whether it has sufficient revenues for efficiently running current public services, and how much it has improved compared to last year. Examining government-wide financial statements will give readers a basic understanding of the government’s condition. The government-wide financial statements consist two parts: the statement of net position and the statement of activities. Based on the statement of net position, in 2015, the State of California has a deficit of about $41.0 billion. Compared to the past 10 fiscal years, the fiscal year of 2015 has the least amount of total governmental activity net position and total primary government net position. In addition, the unrestricted deficit as a percentage of total assets is -75.64%, which is close to -100%. This number
The lack of representation has resulted in the “cut off from the seats of power by geography, alienated by the state’s left-leaning politics and tendency toward regulation, enduring stubbornly high unemployment, facing the decimation of traditional industries such as logging, and harboring few prospects for economic growth”, says Goodyear. All these problems could be resolved by one simple, but very complex solution; separating California into two different states: The State of California and The State of Jefferson. Separating California into two or more states would be the most effective option in lowering taxes
As mentioned by Thompson (2010), in the Associated Press, “Lawmakers bridged a $19 billion shortfall, more than 20 percent of the $87.5 billion general fund spending plan”. This shows that the state was heading towards a financial crisis and more deficit creation. Moreover, Thompson (2010), in the Associated Press also points out that “It includes no tax or fee increases but uses a combination of cuts, funding shifts, delayed corporate tax breaks and assumptions about money the state hopes to receive”. The budget gave rise to other dependent costs such as delayed tax refunds. It was uncertain that the State will receive the required funds from the federal government to ensure that the important programs will function the way it used to be until the funds are received.
The City of San Diego’s Fiscal Year Plan for 2016- 2020 provided a thorough analysis of how funds will be properly allocated to help assist with the public service needs, that need to be addressed within the city. As stated in the FY 2016 Budget Monitoring Report, “The purpose of the Fiscal Year 2016 First Quarter Budget Monitoring Report (First Quarter Report) is to provide City Council and the public with an update of General Fund revenues, significant budget projections, new position hiring status and reserves.” The document introduced four Priority Initiative categories that revolved around: Infrastructure and neighborhood investments, public safety, technology improvements and transparency and open data. Those within city departments