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Schwarzenegger says that California's deficit may reach $41.8 billion by 2010!
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SACRAMENTO, Calif. - California's budget deficit will hit $41.8 billion over the next 18 months - a figure far worse than the already abysmal previous estimates, Gov. Arnold Schwarzenegger's office said Thursday
I worry what this will mean for things like teacher's salaries; back in '91 when we hit a recession, the local school district teachers took a 10% across the board cut. Dh's district pays really well, and given the astronomical size of our deficit, I worry that salaries will be one place where "education cuts" may be made. (I have not yet read where they plan on making cuts, but I have read somewhere, and I apologize for not remembering where, that the budget cuts on a whole will be big. He's also wanting to raise our state sales tax 1.5% - our county is already at 8.25%; a 0.5% increase was just approved by voters in November. If the Governor's cut goes into affect also, our county's sales tax will be 10.25%! I definitely see myself shopping in the next county over, where it would be 1.0% lower, though still high. He also is proposing to triple our car tax.)

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Schwarzenegger was scheduled to meet with legislative leaders Thursday. He was trying to persuade them to agree to a combination of cuts and tax increases to address the dramatic shortfall.
 

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......So glad I left there! I miss the Kalamath River and Siskiyous but I'd rather do without then deal with the central and south cal crap. They really should have pushed for the "State of Jefferson"!
 

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State of Jefferson???

Are you talking about the sales tax on cars or the registration? California's car registration is ridiculous! I just registered my car today. It's a 2002 Ford Windstar. I paid $54 for two years. In California, I would have paid at least $150 to register it for one year.

But to be fair the income tax in Cali is MUCH MUCH MUCH lower. So the lack of sales tax and lower DMV fees even out in the end.
 

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I don't know the whole story behind it, but north cali wanted to separate from south cali and become the "State of Jefferson" - many of the highways (at least when I lived there in 94-96) have normal highway signs but say State of Jefferson/Highway 96. Northern californians are particularly sick of having the south's laws and income taxes and stuff.
 

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Quote:

Originally Posted by Synthea™ View Post
I don't know the whole story behind it, but north cali wanted to separate from south cali and become the "State of Jefferson" - many of the highways (at least when I lived there in 94-96) have normal highway signs but say State of Jefferson/Highway 96. Northern californians are particularly sick of having the south's laws and income taxes and stuff.
Umm I grew up in Northern Cali. An hour south of Sac. I didn't move until 2004. I have never ever heard of the "State of Jefferson" nor have I never seen a sign that says such.

Northern Cali has wanted to separate for YEARS. They steal our water man!
l And that I believe is the real reason Cali is one state. Because otherwise S. Cali would have to pay N. Cali for the water where now it is free.
 

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Quote:

Originally Posted by aniT View Post
Umm I grew up in Northern Cali. An hour south of Sac. I didn't move until 2004. I have never ever heard of the "State of Jefferson" nor have I never seen a sign that says such.

Northern Cali has wanted to separate for YEARS. They steal our water man!
l And that I believe is the real reason Cali is one state. Because otherwise S. Cali would have to pay N. Cali for the water where now it is free.
Sac is more north central...this is from Chico or so, up. I lived in Happy Camp, DD was born in Yreka.

Here ya go:
http://www.jeffersonstate.com/ (and until just now I didn't realize it included part of Oregon)

Check out the photos, can't get more real then photographic proof


One more edit: S cali pays nevada/someone else out of cali for water doesn't it?
 

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Quote:

Originally Posted by Synthea™ View Post
Sac is more north central...this is from Chico or so, up. I lived in Happy Camp, DD was born in Yreka.

Here ya go:
http://www.jeffersonstate.com/ (and until just now I didn't realize it included part of Oregon)

Check out the photos, can't get more real then photographic proof


One more edit: S cali pays nevada/someone else out of cali for water doesn't it?
I dunno.. they may need more water ontop of what northern Cali provides.

I found this quote on this webpage interesting.

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"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

~Thomas Jefferson
Dude why did NO ONE Listen to the founding fathers? They sure like to tote what they said when it benefits them, but when it doesn't,their words are forgotten.
:
 

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I watch the economic news, particularly as it affects education because that's how our business is funded. It's hard to imagine in the current budget negotiations that schools will end up with much less than about an 8% or so cut, on top of belt-tightening measures they have already taken.

Districts will cut consultant contracts and administrator positions first. They will cut "non essential" teaching staff, but there isn't necessarily a lot of them in a school or district. Local unions might agree to a pay cut. We're in the "consultant contract" category.
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It looks like the budget deficit for the current year may be as much as 15B, but that number goes up every day that there is not a new budget agreement and it is the Schwarenegger number.
 

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Originally Posted by Gale Force View Post
It looks like the budget deficit for the current year may be as much as 15B, but that number goes up every day that there is not a new budget agreement and it is the Schwarenegger number.
Hrm... Isn't the budget supposed to be approved by July? It seems government workers were always threatened with no pay check until the budget was passed. (as if they have anything to do with it.) I do remember a few times they did lose their paychecks. It seemed this was always in the summer.
 

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Quote:

Originally Posted by aniT View Post
Hrm... Isn't the budget supposed to be approved by July? It seems government workers were always threatened with no pay check until the budget was passed. (as if they have anything to do with it.) I do remember a few times they did lose their paychecks. It seemed this was always in the summer.
The budget was approved in September and that was a fight (and it was late). Within a few weeks of approval, the government started announcing new deficit numbers and calling for revisions to the current budget. Every couple of weeks the projected budget for the year is higher by a billion or more. There is talk of mid-year cuts for schools (which would be devastating) and of stopping *immediately* all of the building projects in the state. The latter may happen anyway since apparently the state is loaning money for those to move forward, money it now needs to float a growing deficit. Road construction, school building, etc could be stopped real soon.
 

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The state doens't build the schools though, the school districts do.

As for cutting funding mid year.. Davis did it just before he was recalled. It's nothing new. The size of the cuts might be what is new however.

So where is all the money going?
 

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I am a CA native, and I still have a lot of family there, but this is why DH and I will not be moving there (even though, otherwise, I'd love to, and we strongly considered it). It's very sad to me. It's hard to see a realistic way out of this mess now. Any useful economic fixes are likely to be rejected by the citizens. And if taxes go up, even more residents and businesses will leave and the whole cycle will only continue. There's already been a mass exodus of businesses from CA happening for a few years now.

 

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Quote:

Originally Posted by LionTigerBear View Post
There's already been a mass exodus of businesses from CA happening for a few years now.

I think a lot of that however is

1. the crazy workers comp insurance businesses have to buy and

2. Before I left a law was passed forcing businesses with more than 50 I think employees to pay 100% of the premiums for health insurance for the employee and 50% I think for the family. I don't know if this law was repealed or reformed, I think it was one of the last things Davis signed, but I always thought it was a business killer when was signed in.

Yes great for employees providing they don't get laid off cause their company can't afford it.

California needs to stop tapping into the businesses and expecting them to solve all their problems. It's no wonder they are leaving in droves.
 

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Quote:

Originally Posted by aniT View Post
I think a lot of that however is

1. the crazy workers comp insurance businesses have to buy and

2. Before I left a law was passed forcing businesses with more than 50 I think employees to pay 100% of the premiums for health insurance for the employee and 50% I think for the family. I don't know if this law was repealed or reformed, I think it was one of the last things Davis signed, but I always thought it was a business killer when was signed in.

Yes great for employees providing they don't get laid off cause their company can't afford it.

California needs to stop tapping into the businesses and expecting them to solve all their problems. It's no wonder they are leaving in droves.
I agree.
 

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Discussion Starter · #15 ·
Quote:

Originally Posted by Gale Force View Post
I watch the economic news, particularly as it affects education because that's how our business is funded. It's hard to imagine in the current budget negotiations that schools will end up with much less than about an 8% or so cut, on top of belt-tightening measures they have already taken.

Districts will cut consultant contracts and administrator positions first. They will cut "non essential" teaching staff, but there isn't necessarily a lot of them in a school or district. Local unions might agree to a pay cut. We're in the "consultant contract" category.
:

It looks like the budget deficit for the current year may be as much as 15B, but that number goes up every day that there is not a new budget agreement and it is the Schwarenegger number.

Quote:

Originally Posted by Gale Force View Post
The budget was approved in September and that was a fight (and it was late). Within a few weeks of approval, the government started announcing new deficit numbers and calling for revisions to the current budget. Every couple of weeks the projected budget for the year is higher by a billion or more. There is talk of mid-year cuts for schools (which would be devastating) and of stopping *immediately* all of the building projects in the state. The latter may happen anyway since apparently the state is loaning money for those to move forward, money it now needs to float a growing deficit. Road construction, school building, etc could be stopped real soon.
These are the things that worry me too. At the end of last school year, knowing what the budget cuts were going to more than likely be, dh's district laid off quite a few teachers - in his math department at his school, I think they lost 2 or 3 teachers. Their superintendent (who is definitely not a "friend" of the teachers) is scheduled to be on dh's campus next Thursday (right before winter break - probably figures many won't want to show up) to talk about next year's budget and pay. I have a strong feeling that our health benefits will be cut; there has been talk of that for a few years now.

I've asked dh a few times about the possibility of a mid-year pay cut, but he says that legally, his district is required to have all the money for all positions in the bank for the entire year, so that even if the state cuts its funding mid-year, the salaries would stay the same through June. After that, it's a whole other story though.
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The district where we live (our boys are hs'ed, but it'd be their home district otherwise; it is the district where I went to school and where my FIL taught for 35+ years) had *major* cuts at the end of this last school year going into the beginning of this school year. There honestly doesn't seem like there'd be many more non-essential jobs to cut. The district, if I remember, took over a $40 million cut in its budget (plus, from things I read, another $10 million plus due to declining student population).
 

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Discussion Starter · #16 ·
Quote:

Originally Posted by aniT View Post
The state doens't build the schools though, the school districts do.

As for cutting funding mid year.. Davis did it just before he was recalled. It's nothing new. The size of the cuts might be what is new however.

So where is all the money going?
I thought, though, that the districts built/repaired/retrofitted schools based on bond measures passing, which ultimately was state money? Not to mention, isn't ultimately the only way schools get money is from the state and a small amount from the federal government? Admittedly, it's been a while since I last studied up on the subject. Interestingly, our city/school district just passed another big school bond for repairing/retrofitting our schools - I have *no* idea where they think the money is going to come from ... no one seems to have any extra laying around.
 

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Okay this is a teeny bit OT but

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Originally Posted by aniT View Post
So where is all the money going?
This is something I have been wondering for a while-- seriously. I'm talking about taxes that are ear-marked for public education. If the teachers aren't getting much of it-- and I've heard that principals and other school-level employees don't make huge salaries either-- and this money isn't being used on fancy, state-of-the-art buildings, that's for sure-- and teachers are always complaining that they don't have the supplies that they need (i.e. newer textbooks and so forth) then WHERE on earth is all that money going?
 

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Does anyone remember how Arnie was only going to be a one term Governor. His campaign promise was that he could balance the state budget within one term, so there wasn't going to be a need for him to run for a second term.
 

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Quote:

Originally Posted by MyLittleWonders View Post
I thought, though, that the districts built/repaired/retrofitted schools based on bond measures passing, which ultimately was state money? Not to mention, isn't ultimately the only way schools get money is from the state and a small amount from the federal government? Admittedly, it's been a while since I last studied up on the subject. Interestingly, our city/school district just passed another big school bond for repairing/retrofitting our schools - I have *no* idea where they think the money is going to come from ... no one seems to have any extra laying around.
I was under the impression that when developers built new neighborhoods in Cali it was part of the requirement that they build a school if it is nessesary.

I know my cousin's neighborhood has something added onto their property tax (I forget what it is called) to fun the school that was built with her neighborhood. I don't think the state pays for them.

As for bonds.. I know what you mean.. our district just voted in one to be added to our property tax that is gong to cost about $1,000 more a year. It pisses me off so much because we can't afford that.. but the 54% that voted for it thinks everyone needs to suck it up and pay for it to build and admittedly needed "replacement" high school.

Quote:

Originally Posted by LionTigerBear View Post
Okay this is a teeny bit OT but

This is something I have been wondering for a while-- seriously. I'm talking about taxes that are ear-marked for public education. If the teachers aren't getting much of it-- and I've heard that principals and other school-level employees don't make huge salaries either-- and this money isn't being used on fancy, state-of-the-art buildings, that's for sure-- and teachers are always complaining that they don't have the supplies that they need (i.e. newer textbooks and so forth) then WHERE on earth is all that money going?
Our last year in Cali my oldest daughter always had a problem of not having needed handouts. Apparently her teacher only printed out JUST ENOUGH. If you lost it is was a REAL PIA to get another. I asked her teacher why on earth she didn't make 5 or so extra copies. Well the copy machine had some sort of counter on it. And each teacher had a code. And if they went over their alloted copies per month they had to pay for them out of their pockets.
: Look at the atmopher these teachers are being made to teach in.
 
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