The US state at California is experiencing a budget crisis where it faces a shortfall of at least $ 11.2 billion, is projected to reach $ 40 billion during fiscal 2009-2010.
Video 2008-12 California budget crisis
2008
On September 23, 2008, approximately 3 months after the due date, Governor Arnold Schwarzenegger signed the 2008-2009 budget. The deteriorating financial condition since 2003 has resulted in a country with large shortages.
It takes two-thirds of the vote to pass the budget, and both in the original budget negotiations and in the effort to revise the budget, no political party has enough votes to pass the budget. The majority of Democrats are struggling to minimize program cuts, while most Republican minorities refuse to accept tax increases. The original budget was united by Democrats and some Republicans used spending cuts, internal loans, and accounting maneuvers.
In November 2008, Schwarzenegger proposed a reduction in spending including the following steps on state employees:
- One day leave per month, equivalent to a salary reduction of about 5 percent.
- The removal of Columbus Day and Lincoln's Birthday.
- Employees who have to work on a holiday will receive a holiday credit for later use, as opposed to receiving time and half payments.
- Employees will more easily work four hours per week.
- Overtime payment rules will be changed so the time of departure is no longer considered part of the time taken.
In December 2008, Schwarzenegger ordered mandatory two-day leave per month for state employees, as well as "dismissals, deductions and other efficiencies" to achieve savings in the General Fund up to 10%.
Maps 2008-12 California budget crisis
2009
Workers 'organizations file lawsuits and take other measures in an effort to stop the workers' leave of absence. On January 29, 2009, a High Court Judge ruled that Schwarzenegger had emergency leave power, and in February the 3rd District Court of Appeal in Sacramento said that appeals against the decision came late and were incomplete, so the judge could not determine whether the termination of state leave was justified legally. As part of the leave, various state offices are closed on 1 and 3 Friday every month from February 1, 2009 to June 30, 2010, which is expected to save the State $ 1.3 billion.
In February 2009, the State of California Controller John Chiang suspended state payments of $ 3.5 billion (like state tax refunds) for at least 30 days due to the country's cash flow difficulties.
The state legislature issued a budget in February 2009 that relied on voters who approved tax extensions and the transfer of money into public funds, which in May the voters disagreed. Governor Arnold Schwarzenegger then proposed a $ 16 billion cut and also borrowed money from the local government. In the legislature, Republicans agreed to lower the income of state employees, but Democrats rejected this proposal and suggested an increase in fees to be paid by smokers and oil wells. No party agrees to borrow money from the local government.
On April 1, 2009, state sales and tax usage temporarily increased by one percentage point.
The state has sold short-term securities that the bank guaranteed to get cash, but in June 2009 its credit rating was lowered. When the state requests federal guarantees from records, the Obama administration says it does not have the legal authority to support state records and that the state must solve its own problems.
On July 1, 2009, Schwarzenegger ordered state workers to take a third leave every month. On July 2, 2009, the state government began issuing IOUs to meet its short-term financial obligations. Five days later, Bank of America, Citigroup, Wells Fargo and JP Morgan Chase announced that they would stop receiving IOU on July 10. Fitch Ratings downgraded California's bond rating from A-minus to BBB.
On July 24, 2009, the state government passed a budget that included a $ 15 billion service cut, including a $ 8.1 billion education cut. Removed from the final plan includes proposals to borrow money from city and county governments and to drill for oil off the coast of Santa Barbara. Chiang announced in August 2009 that the IOU program would expire next month and California would pay 327,000 IOUs worth nearly $ 2 billion.
The budget crisis caused cuts and many layoffs at state universities in California. To curb the budget shortage, the California Supervisory Agency voted for a 32% increase in all tuition fees for state universities. This led to an increase in California California college tuition fees in 2009.
From 2012 and 2013
With the passage of Proposition 30 in 2012 and a steadily improving economy, for the first time in years, California Governor Jerry Brown's proposed budget plan for 2013 posted a small surplus.
The cause of budget deficit
The main source of the deficit was a decline in state revenues from more than $ 100 billion in 2007 to about $ 85 billion in 2008 - largely due to a decrease in personal income taxes, corporate taxes and other taxes.
Required legislative supermajorities
News reports and commentators have cited various state statewide legislative requirements as factors contributing to the state budget crisis. The country has a long history of supermajority requirements with a 1933 state ballot size requiring a two-thirds supermajority to pass the state budget and California Proposition 13 (1978) requires another two-thirds supermajority to raise taxes. The National Legislative Country Conference (NCSL) notes that, in 2008, only 9 countries required a supermarket to pass the state budget and the nine states, only 3 (California, Arkansas and Rhode Island) requiring two thirds of supermajoriti instead. from a three-fifth priority to passing the state budget. The NCSL also notes that, by 2008, 15 countries require supermajority to raise taxes and that California is one of 10 out of 15 that requires more than three-fifths of supermajority (ie, 2/3 or 3/4 supermajority).
Reform
Proponents end the requirements of the state's supermarkets noted that "Since 1980, the California State Legislature has met the constitutional deadline of June 15 to send the budget to the governor only five times (out of thirty budget periods.) Only ten robberies committed by July 1 starting fiscal year. "They sponsored California Proposition 25 (2010), a voting initiative that changed the terms of the legislative vote to pass the budget but did not raise taxes, from two-thirds to a modest majority. California Proposition 25 (2010) was approved in the November 2010 election general election state.
See also
- California state finances
References
External links
- Details of Governor Schwarzenegger's plans Jan 2009- Jun 2011
- California state budget website
Source of the article : Wikipedia
0 Comments