Monday, February 14, 2011

LAO identifies massive cuts if tax extensions fail



If lawmakers pursue a cuts-only budget to solve the state's $26.6 billion deficit, they could eliminate class-size reduction, require that kindergarten students be 5 years old at enrollment and hike university tuition by another 7 to 10 percent, according to a new review by the nonpartisan Legislative Analyst's Office.
There's also a stark option for state workers: reduce pay by an additional 9.24 percent (equal to two furlough days) and reduce state contributions to employee health care by 30 percent.
The Feb. 10 letter responds to Sen. Mark Leno, D-San Francisco, who asked the Analyst's Office what the Legislature could do if voters or lawmakers reject tax revenues proposed by Gov. Jerry Brown. The LAO offered $13.5 billion in alternatives, presuming under Leno's request that the ballot taxes would not succeed and other revenue ideas like eliminating enterprise zones would fail. (end Sac Bee blog)

The LAO list is revealing.  That is the kind of a state that the anti tax radicals  want. There are no quick nor easy solutions. We can not simply cut our way out of the crisis; budget cuts and lay offs make the recession worse.
School funding reveals the nature of crisis.  In the last two years the k-12 budget “solutions” have cut 4.6 billion dollars from the schools. We have larger classes and fewer teachers.  These cuts would devastate our schools ( your grandchildren), the police, the fire fighters, the county health workers.  Who is going to protect you from the West Nile Virus?
Instead of these cuts, we need to spend more state money to improve schools, to develop roads and infrastructure, and to create jobs. 
Those who are well educated are more employed and paying taxes while those with less education, those who leave school, are in a prolonged economic crisis.  It is well documented that our schools and our universities are in a finance crisis – in part created by the corporate subsidies hidden in Proposition 13.   We need to be preparing young people for new jobs and to create new industries.  Improving education, including both k-12 and higher education, makes California more likely to attract investment and the creation of new jobs and new industries.
As a consequence of the recently passed federal tax reductions, including the reduction of taxes to the wealthiest taxpayers,  Washington-based Citizens for Tax Justice estimate that  California’s richest taxpayers will be saving about $14 billion annually on their federal taxes. The next wealthiest 4 percent, with an average income of $310,000, will save another $6.5 billion.  State taxes should be increased on these two groups to secure this available 20.6 Billion dollars to avoid these cuts.  However, passing legislation to tax these folks requires a 2/3 vote, and the Republicans and the Tea Party types will protect their corporate sponsors.
To calculate the benefits that the rich in California  received from the Obama/Republican compromise.   Citizens for Tax Justice. http://www.ctj.org/
  


Fair Use
FAIR USE NOTICE: THIS SITE CONTAINS COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. WE ARE MAKING SUCH MATERIAL AVAILABLE IN OUR EFFORTS TO ADVANCE UNDERSTANDING OF ENVIRONMENTAL, POLITICAL, HUMAN RIGHTS, ECONOMIC, DEMOCRACY, SCIENTIFIC, AND SOCIAL JUSTICE ISSUES, ETC. WE BELIEVE THIS CONSTITUTES A 'FAIR USE' OF ANY SUCH COPYRIGHTED MATERIAL AS PROVIDED FOR IN SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 U.S.C. SECTION 107, THE MATERIAL ON THIS SITE IS DISTRIBUTED WITHOUT PROFIT TO THOSE WHO HAVE EXPRESSED A PRIOR INTEREST IN RECEIVING THE INCLUDED INFORMATION FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION GO TO: HTTP://WWW.LAW.CORNELL.EDU/USCODE/17/107.SHTML. IF YOU WISH TO USE COPYRIGHTED MATERIAL FROM THIS SITE FOR PURPOSES OF YOUR OWN THAT GO BEYOND 'FAIR USE,' YOU MUST OBTAIN PERMISSION FROM THE COPYRIGHT OWNER.

If any publisher or owner of a copyrighted product believes we have violated your copyright, please contact me and we will usually remove the article, except under the guidelines of fair use above.  We will then post material about the contested issue  from alternative sources.

Post a Comment
 
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.