Orange County Breeze
News of Northwest Orange County, CA
Southland Credit Union | You Can Join! | Find Out How

Yes on Measure Q | Friends for Cypress Schools | www.FriendsforMeasureQ.com




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!
 
 

 
weather icon, rain

Today’s weather for Halloween, Friday, October 31

Today’s local weather: A chance of drizzle before 11am. Cloudy, then gradually becoming mostly sunny, with a high near 72. Calm wind becoming southwest around 5 mph in the afternoon. Showers, mainly after 11pm. The rain c...
by courtesy
0

 
 
DARTS-cover-art-2014011

November Dining, Arts and Entertainment listing available now!

Our popular monthly Dining, Arts & Entertainment (DARTS) listing is available as a downloadable pdf document. Now the November 2014 DARTS can be downloaded for free! From cover to back, it’s pages are stuffed with event l...
by shelley
0

 
 
HBPD-shoulder-patch

Huntington Beach teen struck, killed by car

According to the Orange County Coroner, Huntington Beach resident Monique Zarazua, 17, was struck by a car shortly after 5:30 a.m. on Monday, Oct. 27, while walking at Beach Blvd. and Yorktown Ave. in Huntington Beach. Ms. Zara...
by courtesy
0

 

Subscribe to our daily overnight news summary!

 
HBPD-shoulder-patch

Off-duty LAPD officer arrested for public lewdness in Huntington Beach

On Thursday, Oct. 23, shortly after 7:30 a.m., detectives from the Huntington Beach Police Department were conducting surveillance in the area of Bolsa Chica St. south of Los Patos Ave. The surveillance was part of an investiga...
by courtesy
0

 
 
Orange County seal

OC Registrar of Voters announces manual tally of votes cast

Pursuant to California Election Code section 15360 (d) this serves as public notice that we will be conducting a random draw of 1% of our precincts in the Nov. 4, 2014 General Election to be used in a manual tally of votes cast...
by courtesy
0