California State Budget

1. During the 1970s Conservatives and Liberals clashed over a variety of domestic issues in the U.S. Some of these included abortion, gay rights, women’s rights, welfare, drug use, gun control, and New Deal liberalism just to name a few. Conservatives pushed for several agendas which included reducing taxes, improving morale, and reducing action towards affirmative action. Proposition 13 was one of these agendas established in California, 1978. Prop. 13 sharply cut property taxes in the beliefs that it would promote economic growth. This belief was later the basis of another tax cut towards the federal government that was issued by two members of the Republican party. A reduction in affirmative action was taken when

California's Proposition 13 had a big impact on American government and public policy because it put to vote the reduction of property taxes. This Proposition had a great impact as it swept the county and made headlines in newspapers around the world. People used this initiative process to gain a greater control over their lives. The California taxpayers stood up and said no more to excessive taxes because they were tired of out of control property taxes and losing their homes because they could not pay property taxes while the government did nothing to help them. This in turn hurt the schools, cities, counties and special districts. From this proposition, we have a few others like

Although the federal government declared that the “Great Recession” had hit its low regression and the hoped-for economic recovery had begun in December 2009, California continued to suffer from the ill effects of the financial blow.

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 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.

California’s comeback from the financial ruin during the Great Recession is the best thing that could have happened. Not like other states where they prefer cutting education. (Smith). In other states they prefer funding other programs/organizations and losing a few weeks of school. California is particularly vulnerable to economic downturns because it relies heavily on taxing the wealthy, whose incomes rise and fall with an unpredictable stock market. (Chris Megerian). In these 12 years to come with proposition 55 running there could be times when the wealthiest Californians would be making less but others making more. In cases like those the people making more would have their taxes

In 2008 California was faced with a huge budget crisis and governing crisis as the state governing was not nearly as efficient enough to respond to changes and problems that were happening in the state. This was due to a lot of poor laws that related to taxation and to the way our state government worked. There is also unique differences with California than other states, like our direct democracy system, and many of our laws are compromises that don’t work well between liberal and conservative ideologies. Our politicians are also not well motivated to serve the people and would rather server their own special interests that benefit their own career. While there are still a lot of problems that California needs to deal with, we did make adjustments

This paper will analyse the 2013/14 Fiscal budgets the City of Ukiah and California City. I will attempt to examine the similarities and differences of both these cites revenue and expenditure line items in their budgets. The cities are similar in that they generate revenue from many of the same resources and they have similar expenditures in their annual fiscal budget. However, the cities budgets strategies are different because both these cities demographics, social, economic, political platform, and historical characteristics guide both cities elected official’s decisions during the budget process.

The recession of 2008 is also called the ‘Great Recession’, said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded globally. This recession affected the world economy, and is said to have been the worst financial disaster since the Great Depression. The decline in the Dow Jones this time was -53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3 million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People’s reaction to this recession was a huge decrease in spending and borrowing from banks, but an increase in saving.

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.

Report by the Legislative Analyst's Office that predicted a severe budget shortfall meant that most of the California public school students were to experience shorter school year. Governor's tax measures tried to solve the cuts of public school financing. Menifee district depended on Governor Jerry Brown's initiative or the education to face $5.5 billion, thus advising school districts plan for the worst case scenario in their endeavors to come up with their 2012/2013 budget.

Reagan, during his administration fought to decrease the far-reaching policies of the federal government. He increased defense spending, social security payments and tax cuts, causing less money to be spent on grant-in-aid programs. The trend set by Reagan has been carried on throughout the more recent administrations. The role of the state and

A more challenging economy is reducing tax revenues and the demand for our services, which is leading to tighter budgets for most of the governmental agencies like

The Great Recession has added an additional role for governors to handle. In the state of Michigan, the current governor, shortsighted a key issue of addressing the collapsing infrastructure correctly and has harmed many individuals within the community of Flint, Michigan.

Countries all over the world are facing debt crises, brought on by the credit collapse in the year of 2008. Community services, local jobs, and over employment are being cut and local possessions are being sold, in a last ditch effort to balance budgets that cannot be stabled. The reason the budgets are so out of line are because the flow