The second shoe starts to fall as the budget numbers hit home this week, with California officials updating their "revenue forecast" and finding out just how deep the new cuts will be. The Bee's Kevin Yamamura tells the tale.
"The audience for such dry exercises normally consists of bureaucrats and budget wonks. But in an unusual step, state leaders tied real-world consequences to the revenue update. They inserted $2.5 billion in midyear cuts, some or all of which will trigger if Brown's Department of Finance determines California will fall short of its optimistic projections."
"The nonpartisan Legislative Analyst's Office said last month that California will take in $3.7 billion less than expected. That would translate into $2 billion in cuts to libraries, universities and K-12 schools, with the rest of the hole rolled into next year's $13 billion deficit."
"Child care providers are concerned," said Patty Siegel, executive director of the California Child Care Resource and Referral Network, who is hoping to avoid a $23 million cut to child care after facing a $412 million reduction this summer. "Those already on the cusp of closing are wondering, is this the piece that will put them over the edge?"
Public pensions are a hot topic these days, but this time the issue is legislative pensions, which were outlawed for new lawmakers by voters in a 1990 ballot measure.
CalPensions' Ed Mendel takes a look: "A backdoor attempt by CalPERS to trim an absurdly generous pension backfired, resulting in a $7.7 million payment last year to the heirs of a man who retired as a top state Senate aide more than 40 years ago."
"The settlement after a lengthy court battle took a big bite out of the Legislators Retirement System, which has been shrinking since a term-limit initiative, Proposition 140 in 1990, ended pensions for new legislators."
"The court settlement last year nearly equaled the annual amount of pensions paid by the plan. During fiscal 2009-10, payments to 266 retirees totaled $7.9 million, an average of $29,535."
"But the system’s investment fund still had a market value of $114 million in June of last year. And in a fact sheet that the California Public Employees Retirement System gave a legislative committee this month, the system stands out. It’s the only one in which the employee contribution is zero."
The big rap on Silicon Valley is that it's a lousy place to live. But down in Southern California, they may have an answer to that: "Silicon Beach," where internet startups and venture capital are starting to swirl.
From Andrea Chang and David Sarno in the LA Times: "The Los Angeles tech scene has buzz, glitzy backers and even a catchy nickname: Silicon Beach."
"Tech boosters are stumping for a Silicon Valley contender down south, and conference halls and bars are brimming with entrepreneurs looking to join a growing community that includes a huge new Google campus in Venice and a wave of Internet start-ups."
"We've been investing in this area since 1999, and we've never seen a level of activity higher than it is today," said venture capitalist Nate Redmond of Rustic Canyon Partners in Santa Monica. "Anecdotally, almost all things tech are doing well."
'Young Internet-based businesses such as TrueCar and Riot Games have been expanding their workforces and their offices. And a new crop of start-up incubators is advising and funding young entrepreneurs."
The state is looking for money behind very bush, but one group of Californians aren't helping much: The top 100 tax delinquents who owe the state some $419 million. And you thought your tax bill was too high.
From Sam Pearson in California Watch: "Amid a crippling state budget deficit and a national debate over raising taxes on the wealthy, the California Board of Equalization has added 16 new companies and individuals to its list of unpaid delinquent sales and use taxes for the fourth quarter of 2011."
"According to the tax agency, the newcomers included an oil company, a restaurant, several car dealerships, a financial adviser and an auto repossession service. In total, the newcomers owed a combined $21,169,530."
"The top 100 list contains more than $419.5 million in owed taxes ... The total amount owed by delinquent taxpayers dwarfs the $333 million the California State University system is asking to have restored to its budget for the 2012-13 year and is enough to cover a semester of tuition at the CSU system for 153,326 students. It also would be enough revenue to offset the planned “trigger cuts” to the CSU and University of California systems, community colleges, various health and human services programs, and public safety programs."
And finally from our "Cleanliness is Next to Godliness" file comes something for everyone who has dirty beatnik friends. Say hello to Dharma Suds!
"Jack Kerouac fans, a seller on Etsy makes--wait for it--a soap to take on the road. Embedded in each made-to-order bar is the above black-and-white photo of the Lowell native and Beat Generation author Kerouac."
"The soapmaker will add your choice of scents like coconut, cucumber or poetry. The latter scent smells like sunflower and powder. No word on what kind of powder, but the seller labels this scent as "unisex."
And there's even a copy of Tom Palumbo's photo of Jack Kerouac. It'll make you Howl...
