1 / 14

Education and the CA Budget

Education and the CA Budget. CA Budget . 2008-2009: $85B budget in CA; $24B deficit 18% decline in state revenues in previous 2 years 2010-2011 $ 86B budget; $18B deficit Revenues improving gradually this year

cliff
Download Presentation

Education and the CA Budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Education and the CA Budget

  2. CA Budget • 2008-2009: $85B budget in CA; $24B deficit • 18% decline in state revenues in previous 2 years • 2010-2011 $ 86B budget; $18B deficit • Revenues improving gradually this year • Balanced Budget by cutting services, borrowing, statewide furloughs (3 days/month) and layoffs • LAO: Projected deficit of $20B for each of next 5 years (“structural deficit”=consistently spend more than we have)

  3. Facts About Taxes in CA • CA’s top income tax bracket has fallen from 11% of income in 1983 to 9.3% today.  • In 1980 California corporations contributed nearly 15% of the state budget; today they pay 11%. • CA legislature has cut taxes for individuals, families and businesses by more than $12 billion over the past fifteen years

  4. Corporate Tax Cuts 2008-2009

  5. Impact on Higher Education • UC • Faculty and staff furloughs • 32% increase in fees over 2 years (to over $10,000) • CSU • Faculty and staff furloughs • Fees increased 40% over last two years to $4287 • Enrollment reduced by 40,000 over two years (no Spring admissions) CCC • No furloughs/few layoffs yet; 1% pay cut for some • Increased fees from $20 to $26/unit (30%) • Enrollment increased by 56,000 students

  6. Impact on K-12 Spending

  7. Impact on CCSF 2009-2011$18 million deficit • Classes cut by 6.3% -- about 300 out of 4,900 classes. • Cuts to student services (counseling, library) • Pay freezes; highest-paid administrators 6% pay cut. • Hiring freeze for staff and administration; most faculty hiring postponed. • About 30 classified staff being “bumped” by laid-off city employees

  8. Impact at CCSF • Spring 2010 classes cut by 6.3% -- 300 classes. • About 100 classes restored for 10-11 • Summer school 2010 cut (800 classes) • 2011 restored (80%) •  Fees maintained at $26/unit for this year • Projected 2011-12 Deficit from $21m – 36m

  9. Proposed Solutions • Prop. 25 – changes 2/3 to simple majority to balance budget (passed in Nov.) but not for tax increases • Tax increases (req. 2/3 vote of legis to put on ballot) • Oil and gas severance tax/$ for higher ed • Increase income tax on wealthiest (1% on top1%) • Revise Prop. 13 to allow increase in non-residential pty taxes • Cut more services/programs • Additional furlough days/layoffs • Social Services, Parks, Cities/Counties

  10. Brown’s proposals • CC Fee increases to $36./unit • 1.5 billion cut to higher ed (12B cuts overall) • $400m to ccs; $500m to UC, CSU • Extend Tax Increases set to expire in June • Vehicle license, sales tax, income tax • Requires 2/3 vote of legis to get on ballot • K-12 budget depends on this; 13B overall

  11. What choices would you make? • Increase Fees /Increase Taxes • Layoffs vs. across the board pay cuts/Furloughs • Cut Student Services or cut classes ? • http://www.latimes.com/news/local/la-statebudget-fl,0,95571.htmlstory

More Related