Prop 1A- Special Elections 2009

Largest State Tax Increase or Responsible Budget Management?


California Proposition 1A, also known as the Budget Stabilization Act, will appear on the special, statewide May 19, 2009 ballot in California as part of a package that state legislators believe will fix the state's budget problems.

Proposition 1A will extend for as long as four years the approximately $16 billion tax increase that is part of the budget deal struck in Sacramento. It will also impose a limit on the amount the state can spend each year.

Although six of the seven statewide ballot propositions on the May ballot (1A, 1B, 1C, 1D, 1E and 1F) are intended to close an approximately $42 billion budget gap. A new report by the California Legislative Analyst's Office said in early March that tax revenues flowing into the state treasury are "well below" the projections it used earlier in the year, and that California's government now faces an additional $8 billion gap in addition to the earlier $42 billion gap.

Fiscal Aid to California

An economic stimulus package working its way through Congress could provide $10 billion in federal relief over the next two years for California's public schools, raising optimism among educators that it might ease cutbacks caused by the state's budget crisis.

The money is part of an $825 billion stimulus package the House of Representatives is expected to vote on today. It contains about $140 billion for schools nationwide.

The package would provide millions of dollars to most school districts in the Bay Area and across the state for construction, special education and help for low-income students.

"This does not solve the fiscal crisis, but it does throw us a lifeline," state Superintendent of Public Instruction Jack O'Connell said Tuesday.

Although no package has been approved, California educators are salivating over what could be the largest infusion of one-time federal cash for schools in the state's history.

California is facing a $42 billion budget gap over the next 18 months, and state lawmakers have yet to agree on how to close it. With the state on the brink of running out of cash, California hopes to borrow money to keep short-term cash flowing.

New California Legislature Starts Session

Oh Man! Did a lot happen on the first day of the new California Legislature on Dec 1st. The governor declares a fiscal state of emergency as revenue shortfalls continue to plunge.

The same day Congress starts working a proposal to bailout state and local governments. This proposal will only encourage politicians to continue their terrible fiscal policies instead of cleaning up wasteful programs.

I hate when politicians resort to dump tricks.