Changes

The state has had two severe budget crises in 2009, caused by high spending, a plunge in tax revenue (caused by the decline in income of the wealthy who pay most of the taxes), and a refusal of enough Republicans to provide the two-thirds majority in the legislature needed to raise taxes.  Long term borrowing is not allowed--the state has to balance its budget annually, but many gimmicks are used.

The state has had two severe budget crises in 2009, caused by high spending, a plunge in tax revenue (caused by the decline in income of the wealthy who pay most of the taxes), and a refusal of enough Republicans to provide the two-thirds majority in the legislature needed to raise taxes.  Long term borrowing is not allowed--the state has to balance its budget annually, but many gimmicks are used.

The state ran out of money and issued IOU's (warrants) before the solution was reached: massive spending cuts. In February 2009, the Legislature raised the state sales tax, bringing the total -- including local sales taxes -- to about 9 cents or more. Top income tax rates, already among the highest in the country, were raised. So were motor vehicle registration fees. Spending cuts approved in February and July are deep. Together, the cuts equal almost 30% of the general revenue fund and will affect schools, prisons, colleges and welfare. Some welfare benefits will be cut by half. California's student-teacher ratio, now about a third above the national average, will probably go even higher. The high prestige University of California system lost 20% of its state payments. It is raising tuition and student fees by 9.3%, imposing salary reductions of 4% to 10% on more than 100,000 workers, and postponing faculty hires until a better day.

With a $26 billion deficit in its $92 billion budget, the state ran out of money and issued IOU's (warrants) before the solution was reached: massive spending cuts. In February 2009, the Legislature raised the state sales tax, bringing the total -- including local sales taxes -- to about 9 cents or more. Top income tax rates, already among the highest in the country, were raised. So were motor vehicle registration fees. Spending cuts approved in February and July are deep. Together, the cuts equal almost 30% of the general revenue fund and will affect schools, prisons, colleges and welfare. Some welfare benefits will be cut by half. California's student-teacher ratio, now about a third above the national average, will probably go even higher. The high prestige University of California system lost 20% of its state payments. It is raising tuition and student fees by 9.3%, imposing salary reductions of 4% to 10% on more than 100,000 workers, and postponing faculty hires until a better day.

 

Republicans claimed victory in the end, as they achieved large budget cuts and no new taxes.

==Elected officials==  

==Elected officials==