California Faces $20 Billion in Red Ink
Friday, Nov 20,2009, 6:55:17 PM Click:
The report says officials are going to need to deal with this red ink in the next few months before the legislature negotiates and adopts its next budget, for the 2010-2011 fiscal year.
The report says the shortfall is largely due to the fact that the state has not been able to implement some of the measures negotiated when legislators forged the present budget. Those measures included a planned sale of the State Compensation Insurance Fund.
The report also notes that the state prison system and the Medi-Cal program have not bee able to acheive anticipated savings.
The report says the impact of the shortfall could last for a long time if not addressed. Thought the state economy does appear to be growing somewhat, it is growing slowly and spending is expected to outpace revenues for several years. At the same time, the state has skyrocketing costs for retired workers and for debt service.
The California Budget Project said the report highlights the fact that the state must reform prisons and should consider cutting tax breaks given recently to some major corporations.
"It's also clear that California cannot afford to subsidize the state's largest and most profitable corporations through the tax cuts enacted in September 2008 and February of this year," said Jean Ross, the executive director of California Budget Project, in a statement. "The Legislature should repeal corporate tax cuts that were included in these budget agreements that could cost the state as much as $2.5 billion per year when fully implemented."
You may also be interested in:
- Actuaries Examine Lessons Learned From The Financial Crisis
- China May Start Pilot Program For Insurers To Set Up Fund Cos
- Shareholders Suit Hits Mortgage Insurer Triad Over Disclosur
- Majority of Indians wish to up savings in six months: Survey
- The AIG Effect: Congressional Fire Turns to Quiet Debate
Featured
Property/Casualty Insurers Lead In Adapting To Climate
Insurers are showing signs of trying to adapt their business models to issues
CNA Appoints John Hennessy Chief Executive Officer,
CHICAGO--(BUSINESS WIRE)-- CNA Financial Corporation (NYSE: CNA) announced
A.M. Best Special Report: Reinsurers Keep Their
OLDWICK, N.J.--(BUSINESS WIRE)-- U.S., Bermuda and large international
Annuity Industry Fights Back, Last Chance to join the
Massive change is upon the annuity industry. Now is your chance to lead the
AIG Posts First Profit Since 2007
American International Group, Inc. (AIG) reported its first quarterly profit
Helping non-profit organizations in Ease enormous new
DES MOINES, Iowa--(BUSINESS WIRE)-- Non-profit employers who sponsor 403(b)
Alltrust Insurance to Expand Registered Capital to
Alltrust Insurance Company of China Ltd. recently gained approval from the
MOST POPULAR
- Most Read
- Most Discussed
- Most Emailed
- A.M. Best Places Ratings of Forethought Life Insurance Compa
- A.M. Best Downgrades Issuer Credit and Debt Ratings of Jackson National Life Insurance Company and Its Affiliates
- A.M. Best Downgrades Ratings of Bankers Life Insurance Company; Revises Outlook to Negative
- Farmers Insurance(R) Named One of the 'Best Companies to Work For' in the Greater Kansas City Area
- Till Death Do Us Part; How second-to-die life insurance pol
- Chartis Charts Its Path Away From AIG
- A.M. Best Revises Outlook to Negative for AXA Financial, Inc
- Prepared Insurance Strategy Shaped by Florida Regulation, Rates
- Bank of America began to reduce the principal amount of mortgage loan modifications
- A.M. Best Downgrades Issuer Credit Ratings of Primerica Life
-
Grisolia Richard at the head of marketing for Narragansett B -
Five steps to maximize retirement savings -
Fla. House panel approves bill for hurricane insurance -
National Underwriter Company Launches CFO Dialogues -
Old Republic Home Protection Creates Innovative Three-Year Home Service Contract for Phoenix Neighborhood Stabilization Program -
Guardium for Momentum Fuels customer database by IBM Softwar -
Reinsurance Group of America to acquire ING Reinsurance U.S. -
Toxic Drywall Might Have Insurance Repercussions


Discuss this news
Click Here to see all comments