To cover the cost of retirees living longer, the CalPERS board next month is expected to approve the third rate hike in the last two years, phasing in the increase to soften the blow on state and local governments. The new rate hike would not begin until fiscal 2016-17 to allow employers time to plan after receiving rate projections next year.
But even as the rain clouds appear sparse, there may be a silver lining for the backers of a major ballot measure: Experts say the grim outlook could spur voters to approve a multibillion-dollar bond facing voters in November 2014. It could bring to reality the need to borrow money and resolve some of the state’s water issues. (Photo: Lower American River, USFWS)
State Capitol, Sacramento. (Photo: David Monniaux)For the followers of California politics, non-election years usually are yawns. Not so 2013: One would be hard pressed to find a year with more hot-button events fraught with statewide political ramifications. Here’s our roundup of the year’s top tales, a subjective compilation to be sure but one which was fun to put together. (Photo: Wikimedia Commons)
“The LAO says the state is flush with cash and multibillion-dollar reserves loom in coming years. How should we spend the money?”
Buoyed by a soaring stock market and rising home prices, personal income tax receipts are flowing into the state treasury at a rate exceeding all expectations. But one big question looms as lawmakers and the governor consider how to spend the government’s new found riches: what will happen when the music stops?
In 2013, the Legislature and the Governor agreed to a restrained state budget for 2013–14, and our forecast of state tax revenue collections has increased since last year. Accordingly, we now find that California’s state budget situation is even more promising than we projected one year ago.
Desert Hot Springs is considering bankruptcy for the second time in 12 years. On Tuesday, the city council unanimously approved a fiscal emergency. An emergency declaration is a preliminary step in filing for bankruptcy protection, although there was no indication from council members that a bankruptcy action was coming.
Across California, some six dozen community college districts – locally administering 112 schools, the largest higher education institution in the country – were scrambling for $90 million.
Just days after the Legislature and the administration concluded months of budget battles, a routine bill sat on Gov. Brown’s desk awaiting his routine signature.
But the obscure, budget-linked bill – called a “trailer” because it is hooked to the state budget – was anything but routine.
It contained five paragraphs of startling language that
Last week, the California judiciary went on a rollercoaster ride.
The final budget – it’s been approved by the Legislature and awaits Gov. Brown’s signature — included some relief for a court system that has taken continuous cuts over the last five years. But there were indications that the money is too little, too