State fiscal nightmare: deep cuts on horizon {california}

[xchrom]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/16/BASO1LVO2M.DTL&tsp=1

California faces deep mid-year cuts to its universities, community colleges, social service programs and public schools - which may have their year shortened - because the state will collect billions in revenue less than expected, according to a report released today.

The report by the Legislative Analyst's Office says the state faces a budget deficit in the current fiscal year largely because it will collect only $300 million of $4 billion that Gov. Jerry Brown and the Legislature added to the budget just days before it was approved in June. Critics had called the sudden infusion of projected revenue "phantom money" that was conjured to avoid deeper spending cuts.

The report says California also faces a budget deficit in the 2012-13 fiscal year of $13 billion.

The projection does not ensure the automatic cuts will be made, as it is one of two revenue reports that will be used to make that determination. The second report will come from the Department of Finance next month and administration officials will select the rosier of the two projections to decide whether the cuts will take place on Jan. 1.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/16/BASO1LVO2M.DTL#ixzz1du2NX6I1

[The Straight Story]

1. K&R (nt)

[The Straight Story]

2. And to think, CA is home to google, GB, Hollywood, many big military bases

And they can't fund education?

[abelenkpe]

4. It's the unemployment, housing crash

and how taxes are collected.

[CreekDog]

5. Property taxes on commercial property are capped at 1977 assessments

unless they changed hands since then.

under prop 13, the maximum a county can increase the assessed value is 2%. think about what inflation inc

that's thanks to Proposition 13.

[Laelth]

3. Cutting government spending in the middle of a recession is insane. n/t

-Laelth

[FarCenter]

6. The cuts just reduce the budget back to what it would have been without the fantasy revenues

Consider Intel, for example, which is normally thought of as a leader in Silicon Valley.

None of its semiconductor manufacturing or the assembly and test facilities are in California.
http://en.wikipedia.org/wiki/List_of_Intel_manufacturing_sites

Why is that?

[xchrom]

7. I'll give this 1 kick. Nt