Friday, May 02, 2008

California State Budget continued.

The summary is here. It shows the state being about $11 billion short per year on income compared to expenses out of a $130 billion budget ($44 billion for schools). These kind of charts usually have some funny business related to things like pensions. We just got a notice that the University of California tuition will be increasing. This too has some funny business, because there are a number of mandatory fees with the UC system that add up to about the same as the tuition. I suspect taxes will be raised soon, but this is a bit dangerous. Most of the productive parts of the state already have a very high cost-of-living. Property taxes are off limits, unless they want to undo proposition 13. Income taxes for the "rich" (i.e. the middle and upper middle working classes) won't do much for competition and outsourcing. Sales taxes make the most economic sense, but then people see the pain every time they go to the store. In our populist era, the thing to do is to force corporations to pay more, especially oil companies. This makes the least economic sense, but it is what we should probably expect.

1 comment:

Livingsword said...

Hi Looney;

I’ll be back later to comment on this article, just letting you know that I have tagged you (and I think it would be interesting to see what you do with this one):