Orange County Breeze
News of Northwest Orange County, CA




Editorial

December 8, 2012
 

[Updated] About Proposition 30 and the report on November California state revenues

Printer-friendly version of this post Printer-friendly version of this post
money, fist, business suit

California State Controller John Chiang recently released a report on revenues collected by the State of California for the month of November 2012.

Revenue was dramatically below projections in the 2012-2013 state budget as proposed by Governor Jerry Brown and approved by the California State Legislature.

A bunch of folks immediately started hollering that this shortfall was “desipite the passage of Proposition 30.”

Proposition 30, approved in the November election, was Governor Brown’s tax increase to stabilize the state budget.

I opposed Proposition 30, but I cannot allow the statements about November’s state revenue shortfall to mislead readers into believing that the shortfall was “despite Proposition 30.”

Why is the shortfall not “despite Proposition 30?”

Because the Proposition 30 tax increases do not take effect until January 1, 2013.

Supporters and opponents alike will have to wait until next year to see of Proposition 30 will fulfill the governor’s stated goal without further crippling the state’s economy.

Opponents will likely have to wait longer to see if the State legislature — now dominated by a Democratic supermajority — can control its impulse to spend more.

Update:

After reading comments on this and an earlier related post, and discussing the matter with another staff member, I realized that I had railed to take into account any increased income tax withholding resulting from Proposition 30. I do not, in fact, know whether employers were required to apply the increased rate on November paychecks.

In any case, after reading the Controller’s  summary analysis I have decided that the biggest drag on November revenue was a drop in corporate taxes.

Facebook also plays a part, in that a larger chunk of state income from its initial public offering (IPO) was received in October rather than November, as the state budget projected. The Facebook IPO plumped October revenues, then thinned November revenues, when compared to budget projections.

Overall, the Controller says that California state expenses continue to exceed revenue by about 1.6% for the current fiscal year.

That’s less dramatic than a single month’s drop of 10.8%, and it can still run the state into the ground.

But again, the full effect of Proposition 30 will wait for 2013.

More about Orange County Breeze

Did you know that we have a monthly print edition?

We do!

We also have digital version of our print edition online.

To receive a daily email summary of the news, subscribe to our free daily feed!

Enhanced by Zemanta


About the Author

shelley
Shelley Henderson is a reformed computer and networking geek turned freelance writer. Now she only fixes her own networks and computers. That leaves time for writing, and writing and more writing. And editing the Orange County Breeze. Shelley most enjoys visiting and finding out about local businesses to write business profiles that allow our communities to learn more about their local businesses and the people who own and run them. If you own or manage a business in our coverage area and would like to invite Shelley to write a business profile, let us know.



Subscribe to our daily morning email news update!
 
 

 
Insignia of the 89th Regional Readiness Command of the U.S. Army Reserve.

Firefighter engineers train at Ft. Hunter Liggett

Firefighters of the 323rd Engineer Detachment, based in El Dorado, Kansas, and 582nd Engineer Detachment, based in Tustin, California, conducted their annual training exercise at Ft. Hunter Liggett recently. A video by St. Aqui...
by courtesy
0

 
 
disaster-preparedness_MCS

Anaheim urges residents “Be Disaster Aware, Take Action to Prepare”

September is National Preparedness Month and Anaheim Fire & Rescue wants residents to be ready in the event of a disaster or major emergency. This year’s theme, “Be Disaster Aware, Take Action to Prepare” focuses on i...
by courtesy
0

 
 
weather icon, partly cloudy

Today’s weather for Labor Day, Monday, September 1: rip currents

Today’s local weather: Patchy fog before 11am. Otherwise, mostly cloudy through mid morning, then gradual clearing, with a high near 85. Light and variable wind becoming southwest 5 to 10 mph in the afternoon. Strong rip ...
by courtesy
0

 

Subscribe to our daily overnight news summary!

 
LAHS students raised $3,200 for ALS research in the #ICEBUCKETCHALLENGE. Courtesy photo.

LAHS students raise $3200 in ice-bucket challenge

Before you read this article, we suggest watching Los Al’s #ICEBUCKETCHALLENGE Video as this cause is near and dear to the high school community and has impacted the Griffin family directly over the years. (See below for embe...
by courtesy
0

 
 
Drinking-and-Driving-Alcohol-MCS

Seal Beach Police reminds public of Labor Day DUI checkpoints

Labor Day weekend is coming up. For many Americans, that means an extra day off, backyard and beach barbecues, visiting friends and family, and the unofficial end of the summer season. Unfortunately, it also means a sharp incre...
by courtesy
0