history ch 22

  1. stucutural budget gap
    long term or permanent
  2. jerry brown
    opposed prop 13 and was agianst cutting taxes
  3. ringmaster of california budget
    the gov
  4. legislatures craft a
    budget that caters to members voting intereswts that helped get elected
  5. oil companys located in ca
    contributed heavily to the elections of statewide officers and state legislatures that reciece a number of annual tax breaks
  6. LAO
    ligislativie analyst office that is not associated with a specific character
  7. prop 140 limited
    terms for both state senators and cut 60% of LAO budget which made analyzing fiscal bills imposible.
  8. progressive tax
    tax takes a greater % of income from people with HIGH INCOMES
  9. regressive tax
    tax that takes a greater % of income from people with LOW INCOMES
  10. personal income tax
    • state income tax
    • largest source of state revenue
    • progressive tax/
  11. sales tax
    • second largest number of tax dollars
    • regressive tax
  12. franchise tax
    • basic rate of 8.84% of profits that are earned in the state
    • corporations taxed by the state gov generated 10% of state revenue
  13. excise tax
    sin tax. selective imposed only on tobacco alcohol and gasoline
  14. general obligation bond
    • full faith and credot
    • long term financing that is slowly paid back by state revenue which comes from taxpayers
  15. revenue bond
    • finance a gov facility that will generate funds used to pay back bond debt
    • some worry about long term repercussions of relying on borrowing.
  16. lease revenue bond
    • requires only a simple majority vote of state legislature
    • funds borrowed normally small but interest reates are higher
  17. the federal government contributes to
  18. how much funds go to health and welfare
    28% extends to health care to low income facilities, elderly, and disabled through medi-cal programs and TANF
  19. how much revenue comes from the state
    31% of county revenue
  20. how local gove is financed
    • 31% comes from state
    • federal funds
    • provide services to municipal gov through concract city arrangements
    • service charges for utilities, licenses and permits
    • impose percentage points on statewide sales tax rate
    • developer fees, buisness license, and hotel taxes
  21. california budget process
    • govenor submits executive budget plan to state legislature by jan 10
    • realisticly starts 6 months before
    • assigned to the asselmbly budget - reviewed- parcled out by subject to subcommiittee
    • LAO- extensive analysis- hearings and testimonies
    • may revise
    • prop 25, 22, 26
    • govenor signs budget bill
  22. LAO office
    extensive analysis citing strong and weak points
  23. may revise
    dept of finance conducted a projection of the states financial picture. done after taxs due in april
  24. prop 25
    pass a state budget changed from 2/3 to simple majority
  25. prop 22
    restricted state government use of fuds marked for transportation and local gov
  26. prop 26
    requires 2/3 majority to approve fees and taxs
  27. govenor has line item veto power
    ability to reject any particular item in the state budeget. not the president
Card Set
history ch 22