California's interminable budget woes are well known, but one piece doesn't get a lot of scrutiny -- the role of federal dollars. Many California programs rely on the feds, and if that cash is interrupted, we have a big problem. The LA Times' George Skelton takes a look.
"The dirty little secret is that California's current state budget is not $85.9 billion, the size of the much-debated, deficit-plagued general fund. You've got to add in the special funds ($34.2 billion) — much of them fed by fees dedicated for specific purposes — plus bond money ($9.4 billion). That totals $129.5 billion, but it still ignores federal dollars.
"The real state budget includes an additional $79.2 billion in federal largesse, representing 38% of total state spending. This brings the grand total to $208.7 billion."
"So the state of California is getting a nearly $209-billion spending program while putting up less than $130 billion itself."
Speaking of federal money, a contingent of doctors, insurers and others is in D.C. to fight the Medi-Cal cuts contained in California's 2011-12 budget. Kevin Yamamura in the Bee has the story.
"n the latest bid to unravel the $85.9 billion general fund budget, advocates for doctors, insurers and low-income patients will ask federal officials in Washington today to reject $1.3 billion in Medi-Cal cuts they say will hurt the most vulnerable Californians."
"Cities last month asked the California Supreme Court to halt a $1.7 billion state overhaul of redevelopment agencies. Amazon.com is gathering signatures to reverse a $200 million budget bill requiring online sales tax collection. Sen. Ted Gaines, R-Roseville, filed a referendum to block a $150 annual fire fee on rural homeowners."
"As has been the case in recent lean budget years, groups that lose in the annual Capitol budget fight are not walking away quietly. For them, the governor's signature signals a shift in venue rather than the final word."
And more on money: It's not just what the state collects, it's what the state fails to collect because of loopholes.
From Capitol Weekly's John Howard: "There are many to choose from. Allowing offshore tax havens, for example, costs the state some $150 million annually. Allowing homeowners to deduct the interest in a vacation-home mortgage costs $750 million. A recent tax rule allows corporations that report losses to get tax refunds from prior years – a break worth more than $200 million a year. Another rule enabling some companies to decide each year how to calculate their income tax – a provision that Gov. Brown sought unsuccessfully to close this year - is worth about $1 billion, part of some $5 billion in corporate tax expenditures."
“He tried to close it, but couldn’t. It’s absolutely ridiculous and they did it so wrong before that it’s embarrassing, and it costs the state $1 billion a year,” said Lenny Goldberg of the California Tax Reform Association, which is financed largely by labor."
"Tax benefits for property residential and business properties include limits on increases, breaks for commercial property transfers and breaks for agricultural property held from development. There are tax breaks for businesses for research and development, breaks for companies locating in economically depressed areas and breaks for so-called “mom and pop” corporations or Subchapter S companies – a tax benefit enjoyed by more than 372,000 California companies – and incentives for investing in low-income housing."
Budgeting by ballot box has become common in recent years, but the constant flow of ballot propositions financed by well-heeled Republican interests has got Democrats worried.
From the Bee's Dan Walters: "A number of bills have surfaced in the Capitol this year – all in the name of "reform," of course – that would make it more difficult for conservative groups to qualify ballot measures while leaving the methods favored by unions and liberal groups intact."
"They seem to be aimed at what liberals fear will be a slew of state and local ballot measures in 2012 and beyond – public pension reforms, restrictions on political fundraising by unions, and prohibiting so-called "project labor agreements" in public works construction, among others."
"One measure, Senate Bill 168, which reached Gov. Jerry Brown's desk, would have made it a crime for any initiative signature-gatherer to be paid by the name. But he vetoed it this week, saying it would unfairly inhibit groups that want to qualify ballot measures by driving up their costs."
And down in Brazil, we take a look into our "Sex and the City" file to learn about Sao Paulo's day of celebration.
"The city council of South America's biggest city has adopted legislation calling for a Heterosexual Pride Day to be celebrated on the third Sunday of each December."
"Sao Paulo Mayor Gilberto Kassab must sign the legislation for it to become law and has said only that he is studying it. His office declined Wednesday to say whether he supports the proposal."
"The legislation's author, Carlos Apolinario, said the idea for a Heterosexual Pride Day is "not anti-gay but a protest against the privileges the gay community enjoys."
And that's the way it is....
