Plunge In Tax Revenue May Force Calif. To Cut Public Safety, School Funding

LOS ANGELES (CBS) — A new wave of budget cuts could be on the way for Southland social services, public safety and even schools after California faces a massive cash gap.

KNX 1070’s Charles Feldman reports that’s the message coming from the state controller’s office.

Controller John Chiang said California could face a shortfall of as much as $1.5 billion during the first four months of this fiscal year.

“We need better news,” said Chiang.

One of the biggest factors behind the crisis is California lawmakers spending far more than what the state is collecting in revenue — over $2 billion more than budget analysts projected for the first quarter alone.

Chiang also pointed to personal income tax revenue plunging by an estimated $451 million — 12.9 percent — in a drop the Franchise Tax Board blamed on both lower withholdings and estimated tax payments.

The gloomy report amplifies fears the state will impose deeper budget cuts this winter.

Under the budget deal signed by the governor in June, the state will automatically cut a variety of programs depending on how deep budget analysts determine the revenue shortfall will be.

A gap between $1 billion and $2 billion would trigger cuts in social services, public safety and higher education. Any shortfall exceeding $2 billion would likely lead to cuts for K-12 school and community colleges.

More from Charles Feldman

    Notice how the Government keeps cutting Public Safety & Higher Education instead of cutting Welfare & Medi-Cal & Foodstamps.. They rather have Taxpayers suffer than make the lazy & helpless people get to work..

  • California = 70% Mexicans

    The Gov’t too chicken to cut Welfare & Foodstamps coz it will cause a widespread chaos by the poor.

  • California = 70% Mexicans

    The Government’s too chicken to cut Welfare & Foodstamps coz it will cause a widespread chaos by the poor.

  • BGP

    Cut the programs from those that just suck up the money and resources, yet contribute the least. Welfare, housing, free health care, food stamps. Instead the government wants to cut higher education and possibly k-12. Why take away from those who want ot better their lives through education. Instead our goverment caters to those who contribute the least in taxes, yet expect the most from government (public taxes) resources. These programs are designed to help people. Instead, people are relying on these “free” resources to live off of. THey keep having more and more kids, expectin more and more money. Sad part is, they get it.


    if you know how to make babies, you can survive in California.. Apply for Welfare & Medical & you are set..

    No worries, the Taxpayers are now back to 6 months of Unemployment Benefits to collect, but if you can make babies, you can last much much longer..

  • CA Sucks

    What did they expect with allowing the illegals here?
    They work under the table, collect welfare, food stamps, medical, section 8 housing, free breakfast and lunch at school.
    The Politicians asked for it and they got it!


    The Funny part in all this? Some people living off Welfare, Medical, WIC, Foodstamps, nicer cars than your hard working Citizens..

    And their Grocery shopping carts are always full of food..(WIC & Welfare people)

  • TT

    ” California lawmakers spending far more than what the state is collecting in revenue “— Sounds like a spending problem … you cut spending :
    not education, or safety:
    cut out all expense paid trips
    dont put sidewalks in just because you cant use the money for anything else
    dont renevate offices once every 2 years
    dont go everywhere in a limo
    quit paying for peoples cell phones
    dont give ANYBODY a raise – if it interferes with public safety, and our children
    dont give city or state workers credit cards they can run up for personal use
    put limits on them and accountability for expenses
    make sure what funds are designated for a certain area, can be moved if necessary to go where they are needed instead of using them up – just because they cant be used for a different task – because they are designated
    oh – no more expense paid flights, hotel stays etc, conferences, over extreme bonuses, like the banks do…..
    we keep saying we’re broke, if we’re BROKE we cant afford to do anything more than what is required, education, feed the poor, the people who really need help, not live on the system, keep safety a priority….
    If you cant afford to eat – you dont go out n buy a new car….i’m sick of hearing we’re broke!

  • Craig

    Even better, why doesn’t the state attract some large companies to do business in the state. Offer them reduced taxes or no taxes in return for hiring 5,000 + employees. That would generate more revenue and put people back to work. But of course they can’t think that far ahead.

    • TT

      more importantly put Americans back to work – so we export something besides empty containers


    The Golden Years are gone! it’s time to pay.

  • Darrell Nelson

    the way to win in this state is to have babies lots of babies and sell tacos.

  • happyfeets

    i hope it go broke and then a massive earthquake. that would be my dream…act.

    • Aunty Bren Aunty

      I agree

  • Maria

    Make babies & collect Welfare & Foodstamps, it’s the only way to survive nowadays in CALIFORNIA.

    LMFAO @ Unemploy white people moving to the East Coast looking for Work in Cold Frigid Temperatures in the Winter. LoL.

    • TT

      IF you have been looking into the job market back there – there is more blue collar work back there than there is here they opened 2 car plants, one right in MS – where people need a future – i think the other one is somewhere around NC/ VA area – They have companies that make hot water heaters, lighting companies, ect in TN, Alot of MFG in the tri-cities area….. Might be cold – but cheaper to live with ALot more land, for alot less – they dont mind the cold so much when they can raise their kids in a safer, cleaner environment….easier…

  • Jose

    Deport all illegals now! Save $7 billion a year!


    Does anyone know this statistics?

    US immigration enforcement agency deported 400,000 illegals in 2010 & we still have an overwhelming issue at hand.

    The White race is the new minority.

    We have a serious issue.

  • Billy

    Hey guys…We can solve this problem with a tax increase that way we will not need to deprive the illegals of there well earned free money.
    Whatcha say guys? Everybody in?

    • TT

      im not saying immigration isnt an issue – we all know it is – in whatever regard you want to see it – Im just saying that isnt the only one – and if it starts effecting their perks there in Sacramento – maybe just maybe – they’ll handle “their business” the way they should instead of ignoring whats going on right in front of them …

  • m barnes

    we moved from CA to FL last year. We got a house 50 percent bigger for the same amount, our car registrations are around $80/year…and NO personal income tax to file! The water is nice and warm! We made a lot of money in CA but paid a LOT of taxes. People want to bash the rich but the rich can move and then you have no one to support the state. Everything is cheaper here…when I have work done on my house I am amazed how inexpensive it is, from a plumber visit, or a handyman, etc. Raising taxes never works.

  • Astonished

    The reason for the deficit “is California lawmakers spending far more than what the state is collecting in revenue — over $2 billion more than budget analysts projected for the first quarter alone.” AND THIS IS A SURPRISE!!

    How about our dear lawmakers start doing what those of us who aren’t rich and lazy do every day. SPEND LESS THAN YOU MAKE!!!!

    What a novel idea!!

  • Astonished

    Here’s an idea. Maybe we should cut down the number of our lawmakers and their staff by half and reduce their pay by half as well.

    That should save some money and programs!

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