Thursday, February 21, 2013

Editorial: California revenue surge not going to services

I don't think this is a big surprise.  CA has so many fiscal problems that need addressing.
Some state government core responsibilities not only will receive a smaller portion of the budget pie, they will receive fewer dollars than when the pie wasn't as large as it is today.

Despite more tax revenue, proposed spending is significantly lower in key areas in 2013-14 than in 2007-08, the analysis found. Funds for social services declined 14 percent; universities, 14 percent; courts, 16 percent; and transportation, 31 percent. State spending on K-12 education is expected to be no higher than in the 2007-08 proposed budget.

In contrast, spending on health care services is up 62 percent; employee compensation, up 16 percent; retirement benefits, up 25 percent; and debt service, 24 percent. "General obligation and retirement benefit debt has grown substantially – 55 percent and 25 percent, respectively," the report says.

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