The latest numbers
While I'm trying NOT to get caught up in the daily grind of the state budget, it is impossible to ignore the ever increasing budget gap. The State Controller's report for June revenues shows that a $1.1 billion shortfall in revenues.
Here's the latest on this issue from the Sacramento Bee:
The state's chief sources of revenue, income and sales taxes, fell in June more than $1 billion below estimates that were scarcely a month old, state Controller John Chiang reported today, exacerbating the state's budget deficit crisis.
Personal income taxes in June were $987 million below what Gov. Arnold Schwarzenegger's administration had estimated in its May revision of the state budget, while sales taxes were down $154 billion.
The two shortfalls were offset, in part, by $1.31 billion in corporate taxes that were 41.2 percent above estimates -- attributed by Chiang to one-time payments by corporations to avoid a new state penalty for underpayment.
The below-expectations revenues make the state's 2009-10 budget deficit, pegged by the administration at $26.3 billion, that much worse. Schwarzenegger and lawmakers are stalemated over how to deal with the gap. Chiang's office has begun issuing IOUs in lieu of checks to many state creditors because of a severe cash crunch.
"California continues to pay for its history of unbalanced budgets," Chiang said, "The state spent $10.4 billion more than it collected last year alone, and is now without enough cash to cover all of its payment obligations. Our major sources of revenue have continued their trend downward, leaving no viable option but to craft a new budget that recognizes California's recovery has yet to begin."
The full monthly controller's office report may be found here.
On the CalPERS front, things aren't much better. Here's another post from the Bee:
California's 40 state and local public employee pension systems vary widely in their assumptions of future earnings and other factors, including inflation, and San Diego-based actuarial consultant Rick Roeder has generated a system to rank them by degree of optimism.
By Roeder's calculations the immense California Public Employees' Retirement System (CalPERS) is one of the most optimistic, while CalPERS-managed systems for legislators and judges are among the most conservative and the state's other big system, the California State Teachers' Retirement System (CalSTRS) is in the middle.
Roeder's explanation of how these assumptions affect the health of the retirement systems, as well as the detailed rankings, are available here.
Here's the latest on this issue from the Sacramento Bee:
The state's chief sources of revenue, income and sales taxes, fell in June more than $1 billion below estimates that were scarcely a month old, state Controller John Chiang reported today, exacerbating the state's budget deficit crisis.
Personal income taxes in June were $987 million below what Gov. Arnold Schwarzenegger's administration had estimated in its May revision of the state budget, while sales taxes were down $154 billion.
The two shortfalls were offset, in part, by $1.31 billion in corporate taxes that were 41.2 percent above estimates -- attributed by Chiang to one-time payments by corporations to avoid a new state penalty for underpayment.
The below-expectations revenues make the state's 2009-10 budget deficit, pegged by the administration at $26.3 billion, that much worse. Schwarzenegger and lawmakers are stalemated over how to deal with the gap. Chiang's office has begun issuing IOUs in lieu of checks to many state creditors because of a severe cash crunch.
"California continues to pay for its history of unbalanced budgets," Chiang said, "The state spent $10.4 billion more than it collected last year alone, and is now without enough cash to cover all of its payment obligations. Our major sources of revenue have continued their trend downward, leaving no viable option but to craft a new budget that recognizes California's recovery has yet to begin."
The full monthly controller's office report may be found here.
On the CalPERS front, things aren't much better. Here's another post from the Bee:
California's 40 state and local public employee pension systems vary widely in their assumptions of future earnings and other factors, including inflation, and San Diego-based actuarial consultant Rick Roeder has generated a system to rank them by degree of optimism.
By Roeder's calculations the immense California Public Employees' Retirement System (CalPERS) is one of the most optimistic, while CalPERS-managed systems for legislators and judges are among the most conservative and the state's other big system, the California State Teachers' Retirement System (CalSTRS) is in the middle.
Roeder's explanation of how these assumptions affect the health of the retirement systems, as well as the detailed rankings, are available here.
posted by City Manager @ 4:56 AM
0 Comments:
Post a Comment
<< Home