California Budget Fix looks like a loser at the polls

The legislature and governor put together a budget fix a couple of months ago that was dependent on the voters passing props 1A through 1F. The props all look like losers now except 1F which stops legislators from getting pay hikes in fiscal years with deficits. 1F will not help balance the budget.

If they do not pass there is little chance of tax hikes so massive cuts will have to come or the state will go broke by fall with deficits projected into the mid 20 billion dollar range.

I fear the budget cuts forced by such a deficit will be draconian. Traditionally in tough state economic times schools suffer disproportionally. Sad for us. Our classrooms WILL be impacted and likely our salaries and benefits as well.

You can read the bad news and the even worse news by clicking on the links below:

http://www.latimes.com/news/local/la-me-cap13-2009apr13,0,3757188.column?page=2

From the Los Angeles Times
CAPITOL JOURNAL
Sharing the state's fiscal pain


Polls show voter skepticism about the measures.

But if they're rejected, the electorate had better be prepared for sharper cuts in other social services, as well as schools. There's already a projected $8-billion deficit for the next fiscal year. If Props. 1D and 1E fail, the hole will get nearly $1 billion deeper.

Most likely to be rejected is Prop. 1C, which would allow the state to borrow $5 billion against future lottery winnings. If the three props go down, the hole grows to $14 billion.

Another tax hike seems improbable.

http://www.latimes.com/news/local/la-me-california-budget-crisis8-2009may08,0,7342537.story

From the Los Angeles Times
California could be broke by July, state official warns

Despite the budget fix enacted in February, the state is on track to come up $23 billion short of what it needs to get through the year, the Legislature's chief budget analyst says.
By Evan Halper and Eric Bailey

10:26 PM PDT, May 7, 2009