Budget

BudgetCalls to Action: LegislatorsOPEB

Economic Growth Continues

Dear Legislators,

This week the Biden Administration announced that personal income rose 0.4% in April, consumers increased spending sharply, U.S. economic activity is at its highest pace in more than a year, and the unemployment rate is at an envious 3.4 percent.

Govern For California

BudgetCalls to Action: LegislatorsOPEBTaxes

CA’s Tax Increase In Waiting

Yesterday the Legislative Analyst’s Office (LAO) released its Multiyear Budget Outlook through fiscal year 2026-27, forecasting $52 billion of deficits over that period.

Govern For California

BudgetOPEB

Addressing CA’s Budget Deficit

We couldn’t agree more with Legislative Analyst Gabe Petek that it’s best to solve the deficit without using reserves, which are already woefully short of the amounts needed to protect essential services in the event of a recession.

Govern For California

Budget

Addressing California’s Budget Shortfall

The Legislative Analyst’s Office (LAO) has forecast a budget shortfall of $25 billion for Fiscal 2023-24 even if a recession does not occur.

Govern For California

BudgetTaxes

A Dangerous May Revision

We scratched our heads Friday when — despite a steep fall-off in the stock market and a first quarter contraction of the US economy — we learned the May Revision of the Governor’s Proposed Budget expects rosy tax revenues for the 2022-23 fiscal year commencing July 1. After reading the document, we learned how that happened:

David Crane

BudgetCalls to Action: Legislators

Our View Of Governor’s Proposed 2022-23 Budget

Earlier this week DOF released the Governor’s Proposed Budget for the fiscal year starting July 1. At 400 pages it takes time, a process we have now completed. Some initial thoughts follow:

Govern For California

BudgetCalls to Action: Legislators

Governor’s Proposed Budget

Tomorrow the CA Department of Finance will release the “Governor’s Proposed Budget” for the 2022-23 fiscal year that commences July 1. At nearly 300 pages, it is one of two documents providing deep insight into the state government.* I’ve been reading them for nearly two decades now and offer a few tips:

David Crane

BudgetCalls to Action: Legislators

Immediate Disclosure Required

In January, the 2022-23 Governor’s Budget will be made public, after which public hearings will commence, followed by public distribution of the May Revision to the Governor’s Budget and public enactment of the budget by June 30. Guess what’s not public during that period? Political donations from beneficiaries of budget spending.

David Crane

BudgetCalls to Action: Legislators

Assembly and Senate 2022-23 Budget Blueprints

Dear Legislators,

We enjoyed reading the Senate Budget Plan and Assembly Budget Blueprint for 2022-23. These items stood out to us:

David Crane

BudgetCalls to Action: Legislators

Stress Testing In Sacramento

Dear Legislators,

In January the Department Of Finance will issue the Governor’s Budget for 2022-23. No section will be more important than the Stress Test, which forecasts revenue losses in the event of a stock market decline such as in 2001-3 and 2008-9.

David Crane

BudgetCalls to Action: LegislatorsK-12 Education

LAO’s Impossible Task

Dear Legislators,

The Legislative Analyst’s Office is filled with talented people who occasionally take on impossible tasks. Take LAO’s recent Fiscal Outlook for Schools in which it boldly predicts that “capital gains revenue [will be] strong in 2022‑23.” I can’t predict the stock market next week much less next year but unlike the state I’m not depending on it to finance schools that require stable annual funding. If I did, I’d keep loads of cash on hand. That’s because the annual performance of stock markets looks like this:

David Crane

BudgetCalls to Action: Legislators

CA Needs $100 Billion In Reserves

California needs at least $100 billion of reserves. Don’t take our word for it. See page 245 of the Governor’s Budget:

David Crane

BudgetCalls to Action: Legislators

Undemocratic Nondisclosure In California

From January through June last year, the California Legislature held hearings about a proposed budget for the 2021-22 fiscal year that allocated the majority of $300 billion of spending to healthcare corporations and government employees who — during that very same period — made political donations to lawmakers that weren’t disclosed until July 31, a month after the budget had been signed into law.

David Crane

Golden Gate Bridge, San Francisco, California

Mission

Our mission is to be a permanent counter to special interest influence in the California State Legislature and on the statewide ballot. We block special-interest serving legislation and initiatives while promoting legislation and reforms that will increase the quality of public services at reasonable cost to taxpayers.