<p>This can’t be good for college students there</p>
<p><a href=“http://www.nytimes.com/2012/05/13/us/huge-new-shortfall-predicted-in-california-budget.html?hp[/url]”>http://www.nytimes.com/2012/05/13/us/huge-new-shortfall-predicted-in-california-budget.html?hp</a></p>
<p>Ugh, and S just told us this weekend that he wants to pick up another concentration which would take an another 2-3 quarters at his CA school. Thankfully, D will be going OOS!</p>
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<p>It’s a bit odd to see this kind of sentiment but I guess California is a special case.</p>
<p>edit: I’ve been seeing a surprising number of articles on the student loan problems and I’m glad to report that these articles are reporting on the real problem - the size of the loans and talking about the other problems - the economy, lack of jobs or lack of jobs that can reasonably pay back these loans. I don’t really expect anything to happen that will have a major impact on loans though as people feel that a college degree is a necessity towards a good shot a living a reasonable life.</p>
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<p>Not news to anyone out here. The Legislature & Governor have been approving fictitious budgets for years, by assuming that money will come from heaven. (aka the feds, law suit settlements, immediate turn-around in the economy increasing tax take, etc.).</p>
<p>They either have to bite the bullet and cut programs to a level that matches the state revenue intake, or kick the can down the road. They choose the latter so they can keep their jobs and not offend their political constituencies.</p>
<p>One of the CSU Trustees was at my graduation yesterday and was talking about how the graduates are the best hope for California. I turned to my best friend and said “good thing we’re all leaving the state to get jobs…”</p>
<p>Because it’s true. We’re tired of CA proving time and again that it doesn’t give a care about education. Most of us are going out of state, either for jobs or grad school, with no plans of returning. If we’re a representative sample, CA has shot itself in the foot well and good…</p>
<p>I am disappointed to read this.</p>
<p>Silicon Valley is booming. SF is doing better.
Residential real estate is turning in many areas in the state.</p>
<p><a href=“http://articles.businessinsider.com/2011-08-31/news/30026743_1_red-states-federal-taxes-blue-states[/url]”>http://articles.businessinsider.com/2011-08-31/news/30026743_1_red-states-federal-taxes-blue-states</a></p>
<p>California only gets back .78 on the dollar From the federal government?</p>
<p>“On the other hand, fiscal secession would be a boon to most blue states. The citizens of California – harder hit by the recession than most – receive from Washington only 78 cents for every tax dollar they pay in to Washington. New Yorkers get back only 79 cents on every tax dollar they send in. Massachusetts, 82 cents. Michigan, 92 cents. Oregon, 98 cents.”</p>
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<p>But not surprised I’d guess.</p>
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<p>Silicon Valley isn’t immune to outsourcing and there are SV companies that are doing just that. It’s fortunate that there’s still so much business there. It’s usually the bigger companies that have the economies of scale to move operations off-shore.</p>
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<p>Some of the most interesting news on SF was the Facebook stuff.</p>
<p>That guy that renounced his citizenship before the IPO.</p>
<p>Zuckerberg and others establishing trusts (when they don’t even have spouses/kids) to cut their tax bills.</p>
<p>The Boston area is doing well too and the unemployment rate is a lot lower than it is in California. Massachusetts is a high-tax state too but not as high as California. Perhaps the small size of the state makes it easier to manage as it doesn’t have so many disparate and distant interest groups.</p>
<p>Residential real estate is turning in many areas in the state.</p>
<p>dstark- NJ gets 62 cents</p>
<p>I wonder if the $16b deficit is as large as some other States if you consider it as a % of the overall budget?</p>
<p>Tom1944…</p>
<p>That is ridiculous.</p>
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<p>Approximately half of the Cal state budget goes to education. What % would be reasonable, HisGrace?</p>
<p>Not trying to get into a political discussion, HSFM, but I think that California DOES care about education. California’s problem is that is cares about everything else too, and just can’t say no to anything; thus, everything gets funded, while most of $$ goes the most recent squeaky wheel, and the politically connected, which is K12. And perhaps that is a good thing: with a ~50% HS dropout rate in the inner cities, higher ed is just not a much of a priority (nor much of a voting block in contrast to K12 teachers).</p>
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<p>California does, of course, have the option of electing representatives to Washington who would be less inclined to take federal dollars from the voters of California.</p>
<p>Hopefully other moguls will step up to the plate:</p>
<p>[UC</a> Santa Barbara gets $50-million gift from Oracle chairman - latimes.com](<a href=“http://www.latimes.com/news/local/la-me-0513-ucsb-20120513,0,4661937.story]UC”>UC Santa Barbara gets $50-million gift from Oracle chairman)</p>
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Exactly.
And when the day comes, we’ll all hear the “too big to fail” arguments, I’m sure.</p>
<p>Billions of the Facebook founders IPO winnings are supposed to go to taxes. Those should help.</p>
<p>"Billions of the Facebook founders IPO winnings are supposed to go to taxes. "</p>
<p>Only when they sell them, and that may be a looooooooooooong time from now.</p>
<p>^^ and this too:
[Facebook’s</a> Eduardo Saverin Joins Americans Renouncing Citizenship - ABC News](<a href=“http://abcnews.go.com/blogs/business/2012/05/facebooks-eduardo-saverin-joins-americans-renouncing-citizenship/]Facebook’s”>Facebook's Eduardo Saverin Joins Americans Renouncing Citizenship - ABC News)</p>
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<p>Actually, just the opposite. It just delays the day of reckoning a few months.</p>
<p>The reason we are in this financial mess in the first place is the over reliance on taxes from capital gains. That money dried up after the bubble burst a decade ago, but the so-called leaders in Sacramento haven’t yet figured out that basing a budget on capital gains that are one-time events and cyclical is foolhardy.</p>
<p>[Facebook</a> IPO will boost state revenue](<a href=“http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/05/13/BUM21OGQSC.DTL]Facebook”>http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/05/13/BUM21OGQSC.DTL)</p>
<p>“The state Finance Department estimates the offering will generate $250 million in personal income tax revenue in the fiscal year that ends June 30, and $1.25 billion in fiscal 2012-13.”</p>
<p>^^ so someone in Govt. is probably burning the midnight oil planning on spending the $1.5B but not just in till '13 but as a recurring entitlement.</p>
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<p>The Facebook founders have already figured out how to escape the tax man.</p>