2.  2008-2009: $85B budget in CA; $24B deficit  18% decline in state revenues in previous 2 years 2010-2011 $ 86B budget; $18B deficit Revenues improving gradually this year Balanced Budget by cutting services, borrowing, statewide furloughs (3 days/month) and layoffs LAO: Projected deficit of $20B for each of next 5 years (“structural deficit”=consistently spend more than we have)

3.  CA’s top income tax bracket has fallen from 11% of income in 1983 to 9.3% today.  In 1980 California corporations contributed nearly 15% of the state budget; today they pay 11%.  CA legislature has cut taxes for individuals, families and businesses by more than $12 billion over the past fifteen years

5.  UC ▪ Faculty and staff furloughs ▪ 32% increase in fees over 2 years (to over $10,000) CSU Faculty and staff furloughs Fees increased 40% over last two years to $4287 Enrollment reduced by 40,000 over two years (no Spring admissions) CCC ▪ No furloughs/few layoffs yet; 1% pay cut for some ▪ Increased fees from $20 to $26/unit (30%) ▪ Enrollment increased by 56,000 students

10.  Classes cut by 6.3% -- about 300 out of 4,900 classes.  Cuts to student services (counseling, library)  Pay freezes; highest-paid administrators 6% pay cut.  Hiring freeze for staff and administration; most faculty hiring postponed.  About 30 classified staff being “bumped” by laid-off city employees

11.  Spring 2010 classes cut by 6.3% -- 300 classes.  About 100 classes restored for 10-11  Summer school 2010 cut (800 classes)  2011 restored (80%)  Fees maintained at $26/unit for this year  Projected 2011-12 Deficit from $21m – 36m

12.  Prop. 25 – changes 2/3 to simple majority to balance budget (passed in Nov.) but not for tax increases  Tax increases (req. 2/3 vote of legis to put on ballot)  Oil and gas severance tax/$ for higher ed  Increase income tax on wealthiest (1% on top1%)  Revise Prop. 13 to allow increase in non-residential pty taxes  Cut more services/programs  Additional furlough days/layoffs  Social Services, Parks, Cities/Counties

13.  CC Fee increases to $36./unit  1.5 billion cut to higher ed (12B cuts overall)  $400m to ccs; $500m to UC, CSU  Extend Tax Increases set to expire in June  Vehicle license, sales tax, income tax  Requires 2/3 vote of legis to get on ballot  K-12 budget depends on this; 13B overall

14.  Increase Fees /Increase Taxes  Layoffs vs. across the board pay cuts/Furloughs  Cut Student Services or cut classes ?  http://www.latimes.com/news/local/la- statebudget-fl,0,95571.htmlstory http://www.latimes.com/news/local/la- statebudget-fl,0,95571.htmlstory