October 8, 2010
Major Features of the Legislature’s 2010-11 Budget
http://www.lao.ca.gov/reports/2010/bud/major_features/major_features_100810.aspx
Overview
Addressing an $18 Billion Budget Problem. The 201011 Budget Bill was passed by the Legislature on October 8, 2010. The Legislatures plan attempts to address one of the most vexing state budget shortfalls in Californias historythe product of a continuing structural imbalance between state revenues and expenditures and a slow recovery from a severe recession that began in 2007 and ended in 2009.
In May 2010, the administration estimated that there would be a gap of $17.9 billion between General Fund resources and expenditures in 201011 under thenexisting laws and policies. To address this projected gap, the Legislature opted for a package of budget actions summarized in Figure 1. That package (prior to vetoes) includes the following actions (based on our offices categorization):
$6.8 billion of expenditurerelated solutions (including ongoing and temporary cost or service reductions).
$5.4 billion of new federal funding (most of it not yet approved by Congress).
$3.3 billion of revenue actions (including $1.4 billion in higher assumed baseline state revenues consistent with our May 2010 state revenue forecast).
$2.7 billion of largely onetime loans, transfers, and funding shifts.
It’s business as usual in Sacramento.. pass the buck and tax the bejeezus out of the herd..
California, Union powered.