California budget deficit

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States Grab Robosigning Settlement—to Pay Own Bills

California, Georgia, others use settlement as slush fund

(Newser) - When banks agreed to hand the states billions of dollars to resolve the robosigning scandal earlier this year, the money was supposed to go to help struggling homeowners. Instead, more than a dozen states have used it to plug holes in their budgets, the New York Times reports. The latest...

Jerry Brown: Cali Budget Shortfall Hits $16B

California governor wants tax increase to fill budget gap

(Newser) - California Gov. Jerry Brown broke the bad news yesterday by YouTube : His state is facing a $16 billion deficit, not the $9.2 billion shortfall he had projected in January, the San Francisco Chronicle reports. Brown blamed the budget gap on lower-than-expected tax receipts and the loss of spending cuts,...

Despite Money Woes, UC Gives $140M in Raises

Move designed to keep pace with union salaries

(Newser) - The University of California is in the midst of what’s advertised as its worst fiscal crisis ever, with lost state funds leading to tuition hikes and layoffs—but that’s not stopping it from handing out $140 million worth of merit-based raises, the San Francisco Chronicle reports. The raises...

Jerry Brown's Spokesman: GOP 'Basically Moronic'

California governor doesn't think Republicans are very bright

(Newser) - With California Democrats and Republicans at an impasse on the state budget with a deadline looming, here's a sample of how things are going from Gov. Jerry Brown's spokesman: “The Republicans in Sacramento are basically moronic,” he tells Southern California Public Radio . "They aren’t...

California Can't Afford Teachers for $105M School

Meanwhile nearby high school badly overcrowded

(Newser) - California is just about finished building its new $105 million high school, which would be good news for the overcrowded Alvord Unified School District—if it actually had the money to run the thing. Instead, budget constraints are so tight that the district can’t afford to hire administrators, teachers,...

California Lawmakers Lose State Cars

But they'll still get a $300 monthly allowance

(Newser) - State lawmakers in California are losing a sweet perk: They'll no longer get to drive cars provided almost entirely at taxpayer expense, with gas and maintenance costs covered. A state panel today stripped lawmakers of the privilege, reports the Los Angeles Times . Instead, they'll drive their own cars...

California Democrats Warn Campuses Could Close

They lay out dire scenario if states fixes deficit without tax hikes

(Newser) - California Democrats have floated the idea of closing some University of California campuses, shortening the school year, and laying off law enforcement officers as desperate means of dealing with the state’s mammoth budget deficit, the San Francisco Chronicle reports. The proposals were voiced at a hearing examining ways to...

California Cutting Off 48K State Workers' Cell Phones

About 40% of employees currently have them

(Newser) - Here's one more reason California finds itself with a $25 billion budget deficit—it was handing out cell phones to state employees like candy. Nearly 100,000 state workers—about 40% of the workforce—have phones on the taxpayers' dime. New Gov. Jerry Brown is ordering that half of them...

Schwarzenegger Drops State Workers to Minimum Wage

State controller refuses to cut smaller checks

(Newser) - Arnold Schwarzenegger upped the ante in his budget standoff with the state legislature yesterday, ordering almost all state workers' pay cut to the federal minimum wage—$7.25 per hour—effective immediately. The State Controller, Democrat John Chiang, says he won’t obey that order, the LA Times reports, but...

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