Government & Politics

News about government and politics

California Revenues Fall $475 Million Short

Aug 13, 2012
Photo used under Creative Commons from Andy Patterson / Modern Relics / http://www.flickr.com/photos/modernrelics/4461010654/

California State Controller John Chiang released his monthly revenue report today. Revenues fell way below projections for July, but state finance officials say it’s not so bad.

The controller says July revenues were $475 million short. The State ended the last fiscal year with a cash deficit of $9.6 billion. As of July 31, that cash deficit totaled $18 billion, and is being covered with temporary loans from special funds. State Controller John Chiang called the collections “disappointing.” Republican Senator Tom Harman says he’s concerned the state will run out of cash soon.

California voters won’t see much change in the language of Proposition 34. A judge sided with those who want to repeal the death penalty that the November ballot language is not misleading.

Sacramento Superior Court Judge Timothy Frawley upheld his previous decisions on the death penalty ballot measure. He ruled that the ballot’s title and summary written by the state’s attorney general is not misleading. But he did order one slight change in the ballot’s arguments about savings that would result from eliminating the death penalty.

The Chair of a California Assembly committee looking into the state’s special funds accounts called the parks department scandal “shameful” today. As Amy Quinton reports from Sacramento, lawmakers asked finance officials for assurances that there are no more hidden assets.

At issue is how $54 million in surplus Parks department funds could remain hidden for 12 years. An audit last week also found discrepancies in other state special funds accounts. Assemblymember Bob Blumenfield chairs the oversight committee.

A bill that would create a retirement plan for California private sector workers who have no pensions or 401-K’s is facing intense opposition from business groups. The bill was heard today by the Assembly Appropriations Committee.

A new study shows that tribal gaming casinos have a $7.5 billion impact on California’s economy.

The report comes as Governor Jerry Brown considers whether to approve two new tribal casinos that would add to the 60 already in the state.

Beacon Economics conducted the study. It shows tribal gaming has helped create 52-thousand jobs in industries throughout the state.

Steve Stallings is with the California Nations Indian Gaming Association which commissioned the study. He says the report also shows their casinos generate significant tax revenue.

Senate President pro Tem Darrell Steinberg has decided that now is not the time to change California’s newly-approved process for cities and counties to enter into bankruptcy.

He’s decided to kill the legislation authored by a Democratic Assembly member. The bill would have loosened deadlines on negotiations with creditors and labor groups. But Steinberg says it’s time now for the legislature to focus elsewhere.

A new analysis shows that campaign committees already are spending millions of dollars on propositions for California’s November’s ballot. The analysis, by the Fair Political Practices Commission, shows by the end of June, committees had raised more than $84 million to fight or support the 11 ballot measures.

The Commission’s report looked at donors who gave $10,000 or more. While the state limits what an individual donor can give state candidates, there are no limits on the amount of money committees can contribute to ballot measures.

California’s Senate President Pro Tem is responding to criticisms of legislative pay raises and the hidden assets found at the parks department. The issues are giving ammunition to opponents of Governor Jerry Brown’s tax initiative.

California Sentencing Institute / Center on Juvenile and Criminal Justice

A new report from the Center on Juvenile and Criminal Justice shows that Valley Counties on average send more people to jail and state prison than the rest of the state. Kings County topped the list with the state's highest per capita population in state prison, over 1,500 adults for every 100,000 people. Tulare and Kern counties weren't far behind.

Photo used under Creative Commons from Andy Patterson / Modern Relics / http://www.flickr.com/photos/modernrelics/4461010654/

An audit of California’s 560 “special funds” finds no more hidden assets. The audit comes after $54 million in surplus parks funds were discovered in two separate special funds accounts.

The discrepancy results from the difference in data given to the state controller’s office and the finance departments. The audit showed a $415 million difference between the two departments.

But State Finance Director Ana Matosantos says most of those differences arise from different accounting methods and timing of transfers.

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