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Personal Income Tax
General Fund Revenues and Transfers
(Dollars in Millions)
How is it possible for the corporation tax to range near $10.5 billion with the number of profitable corporations in California? Especially when personal income tax revenues ($47.9 billion dollars) and insurance tax revenues ( nearly $1.8 billion dollars) and sales tax revenues (nearly $33.8 billion dollars) are so much higher than that amount? How is that possible?
With enough sales tax for almost $33.8 billion dollars, there is no way that the corporate tax could be less than one third of that amount. What is there sales tax rate? Until recently, wasn’t it around 7%? So corporations pay less than 7% on gross sales? How is that possible?
General Special From
Fund Funds Total 2008-09
Personal Income Tax $47,942 $887 $48,829 $1,041
Total $97,708 $30,667 $128,375 $13,241
General Fund Revenue Total (in millions) – $97,708
Special Funds Revenue Total (in millions) – $30,667
Total Revenue Sources (in millions) – $128,375
Change from 2008-2009 – + $ 13,241
– my note –
for $128 billion dollars, the state of California could be employing every last person in the state with every one of them making a good living. Are they kidding?
Posted date: 1/26/2009
State of the State
By Howard Fine
Fine is a staff writer with the Los Angeles Business Journal.
Beyond the recession, there’s another worry for many California businesses: a proposal from Gov. Arnold Schwarzenegger to extend the state sales tax to several sectors of the service industry.
The plan also calls for a 10% oil extraction tax and a “nickel-per-drink” increase in the alcohol excise tax. And it would raise the statewide base sales tax by 30% to 6.5 cents per dollar from 5 cents per dollar for the next three years.
In Orange County, the sales tax would go from 7.75% to 9.25%.
“Expanding taxes to cherry-picked services is putting businesses in a frightening position,” said John Kabateck, executive director of the California chapter of the National Federation of Independent Business, a small-business trade group.
[. . .]
The golf industry has formed an alliance to fight the governor’s plan to tax green fees, golf club dues and related services. Auto body shops have begun faxing letters to the governor and have planned a statewide meeting for early next month to plot further strategy. And the oil industry is marshalling its forces to defeat a proposed 10% tax on oil extracted from California.
The plan would extend the sales tax to seven industry segments: auto repair shops, furniture and appliance repair services, amusement parks, sporting events and golf courses and veterinary services.
In auto repair shops, the state already taxes the sale of parts. Under the latest proposal, labor also would be taxed.
To offset the negative impact all these tax increases would have on business, Schwarzenegger has proposed easing a number of state laws and regulations on business to help stimulate job creation and boost the state’s economy.
These include the repeal of the daily overtime pay requirement, more flexibility on providing meal and rest periods for workers and easing of environmental regulations on some major public works projects.
** my note – there you go, take employees that are trying to make a living, work them part-time to not pay any benefits to them and then, overwork them without paying overtime, don’t offer any rest or opportunity to nourish themselves and blow carbon monoxide and other nauseating noxious fumes down their throats. What year is this, 1810? Is it really necessary to send every reasonable employment consideration to hell after all the hard-won fights to have them?
If an employer can’t offer those things listed above or won’t, they don’t need to be an employer and are likely insolvent anyway. Let them work the place themselves and pay themselves minimum wage without lunch or overtime and breath acetone and sulfur dioxides without any recourse. It would serve them right.
[continuation of article above . . .]
All of these so-called stimulus measures have long been sought by business groups, which is one reason why some business leaders have not been particularly vocal in opposing the tax proposals.
Under the budget plan put forward on New Year’s Eve by Schwarzenegger, the extension of the sales tax to appliance and furniture repair shops, vehicle repair and veterinarian services would take effect just weeks from now on March 1. Amusement parks, sporting events and golf courses would get hit on April 1.
About two-thirds of the total revenue from extending the sales tax to services would come from the auto repair industry, which only now is beginning to mobilize against the proposal.
The Sacramento-based California Autobody Association has been sending protest letters to Schwarzenegger’s office and is planning to send letters to legislators in the next several days. Labor typically is about 60% of a repair bill.
“It’s plain flat-out not good for our business,” said Chip Fabrizio, director of Cormier Collision Center in Long Beach and president of the South Coast chapter of the Autobody Association. “Our business is already down about 35% from year-ago levels. If people already are holding back on getting repairs, adding this tax will only make this worse.”
Environmental Protection 81 83 79
General Fund Expenditures by Agency
(Dollars in Millions)
** my note –
Why would the state of California spend this much money for environmental protection and then allow businesses to ignore and be absolved of every regulation for the protection of employees and environment from the activities of those businesses and their subcontractors?
** also **
from the Calif State budget for 2009-2010
found in this section – Legislative, Judicial, and Executive
Elimination of Cesar Chavez Day Grant Program — A decrease of $1.5 million in
2008.09 and $2.5 million in 2009.10 for the Office of Planning and Research related
to the elimination of the Cesar Chavez Day grant program.
Eliminate Public Safety Grants — A decrease of $23.9 million in 2008.09 and
$57.4 million in 2009.10 for California Emergency Management Agency (CalEMA)
related to the elimination of local public safety grant funding. Included in this
reduction is funding for Vertical Prosecution Block Grants, Rural Crime Prevention,
California Multi.jurisdictional Methamphetamine Enforcement Teams, the High
Technology Theft Apprehension Program, Sexual Assault Felony Enforcement
Teams, and various other public safety programs.
Flavored Malt Beverage Taxation — An increase of $1.3 million to collect revenues
resulting from BOE regulations that require flavored malt beverages to be taxed at
the distilled liquor rate of $3.30 per gallon, as opposed to the beer rate of 20 cents
per gallon. BOE estimates the regulations will generate $38.3 million in General Fund
revenue in 2009.10.
** my note **
another addition of tax collection efforts – add it to the list.
Chief Information Officer Education Data System Strategic Plan — An increase of
$2 million General Fund and one position to develop a strategic plan for education
data systems by September 1, 2009, as required by Chapter 8, Statutes of 2008,
which would provide an overall structural design to link education data systems.
Chief Information Officer Workload — An increase of $3.7 million General Fund and
$2.7 million other funds to fund 28 positions to provide sufficient resources to carry
out the duties of the Chief Information Officer to provide information technology
strategic vision and planning, enterprise.wide standards, information technology
policy, and project approval and oversight.
** my note –
this would be great except for the fact that information infrastructure is already in place throughout multiple areas of the California budget. Are they trying to hire every tech head and lawyer in the state?
How many cross-system data base re-workings does this state need at this point, all things considered? Here is one in the State and Consumer Services division –
1955 Department of Technology Services 809.4 (positions)
– $ 239,751 (expenditures in thousands) 2009-2010
State and Consumer Services
Department of General Services – State of California – 2009
707 3rd Street
West Sacramento, CA 95605
Governors Budget (PDF)
Budget by the Department of Finance and approved by the Governor
California Budget Historical Documents, 2009-10
The Budget for the current Budget Year (July 1 – June 30) is also available on the California Budget Web Site. For Budget-related information and resources for state agencies and budget analysts, see the Budgeting section of this site.
Department of Finance
915 L Street
Sacramento, CA 95814
California Budget 2009-2010
proposed, revised and semi-detailed
And what is this?
9618 Economic Recovery Financing Committee
$1,351,000 $1,351,000 (In thousands) – over a billion dollars 2009-2010
*** And ***
Workers’ Compensation Benefits for State Agencies
TOTAL WORKERS’ COMPENSATION COST $480,625,000 (in thousands)
** my note – isn’t that 480.6 billion dollars for workers’ comp for state agency employees? That sure seems like a lot – are they all disabled?
8660 Public Utilities Commission – Continued
10 REGULATION OF UTILITIES
10.10 Regulation of Rates
State Operations: $644,998
Totals, State Operations $447,497 (07-08), $568,505 (08-09), $703,550 (09 -10) (In thousands)
** note – why does it cost this much for regulation of utility rates while people in California pay some of the highest electric, natural gas and water bills in the nation? And aren’t they paid to quasi-private companies or not? Are the costs public and the profits gifted to private companies?
Bond Interest and Redemption $3,560,018 $4,109,379 $4,911,851 (09-10)
General Obligation Bond Expenditures
9600 Debt Service General Obligation Bonds and Commercial Paper
** my note – doesn’t this mean the state of California is paying out almost $5 billion dollars a year in interest for bonds and commercial paper (loans) they’ve been taking out to cover stuff they shouldn’t have been trying to afford because they didn’t have the money for it?
** But they did cut spending –
4300 Department of Developmental Services
The Department of Developmental Services is responsible under the Lanterman Developmental Disabilities Services Act for ensuring that persons with developmental disabilities receive the services and supports they need to lead more independent and productive lives and to make choices and decisions about their lives. More…..
MAJOR PROGRAM CHANGES Back to Top
* A decrease of $334 million in 2009-10 in the Department of Developmental Services (DDS) Regional Centers. The DDS Regional Centers continue to experience significant expenditure growth. Due to the state’s fiscal situation, the DDS will work closely with the regional centers to manage program expenditures while meeting consumer service needs within the existing 2008-09 appropriation authority. For 2009-10, the DDS estimates there will be caseload and expenditure growth. However, due to fiscal constraints, the budget contains no funding increases associated with caseload, cost or service utilization growth and establishes a savings target of $334 million to mitigate the growth in the program. The DDS will work with stakeholders over the next few months to develop proposals to achieve the targeted savings while maintaining the entitlement and ensuring program and service integrity.
** And here **
40 – COMMUNITY SERVICES
The Community Services Block Grant Program is designed to provide a range of services to assist low-income people in attaining the skills, knowledge, and motivation necessary to achieve self-sufficiency. The program also provides low-income people with immediate life necessities such as food, shelter, and health care. In addition, services are provided to local communities for the revitalization of low-income communities, the reduction of poverty, and to help provider agencies to build capacity and develop linkages to other service providers.
40 Community Services 32.7
$65,478 (in thousands) 2009 – 2010
4700 Dept of Community Services & Development
20 – ENERGY PROGRAMS
The objective of the Energy Programs is to assist low-income households in meeting their immediate and long-term home energy needs through financial assistance, energy conservation, and weatherization services.
The Low-Income Home Energy Assistance Program (LIHEAP) provides financial assistance to eligible households to offset the costs of heating and/or cooling dwellings, payments for weather-related or energy-related emergencies, and free weatherization services to improve the energy efficiency of homes. This program includes a leveraging incentive program in which supplementary LIHEAP funds can be obtained by LIHEAP grantees if non-federal leveraged home energy resources are used along with LIHEAP weatherization related services.
The Federal Department of Energy Weatherization Assistance Program provides weatherization related services, while safeguarding the health and safety of the household.
The Lead Hazard Control Program provides for the abatement of lead paint in low-income privately owned housing with young children.
20 Energy Programs 43.6
$101,640 (101 million dollars for the entire state of Calif? – that’s obscene) 09-10
** And here **
30 – INDEPENDENT LIVING SERVICES
The Department funds, administers and supports 29 non-profit independent living centers in communities located throughout California. Each independent living center provides services necessary to assist consumers to live independently and be productive in their communities. Core services consist of information and referral, peer counseling, benefits advocacy, independent living skills development, housing assistance, personal assistance services, and personal and systems change advocacy.
The Department also serves blind and deaf-blind persons through counselor-teacher services, purchase of reader services, and community-based projects to serve the elderly blind.
30 Independent Living Services 7.5
$19,043 (In thousands) 09-10
** my note –
The legislators didn’t mind spending far more than that on building marinas and yachting facilities. So, it isn’t what moneys are available – it is a matter of what the decision-makers find to support their own lifestyles on the backs of the taxpayers.
10 – INVESTMENT SERVICES
The Investment Division is responsible for investment of state monies from the date of receipt through the date of redemption. During the 2007-08 fiscal year, this Division handled 12,177 security investment transactions totaling $445.8 billion. The Pooled Money Investment Board program accounted for 7,972 of these transactions totaling $382.7 billion; time deposits accounted for 2,556 transactions totaling $58.8 billion. The remaining $4.3 billion is invested on behalf of the state’s special funds, such as those associated with the California Housing Finance Agency, the Department of Fish and Game, the state’s retirement system, etc. The Division also administers the Local Agency Investment Fund (LAIF), a voluntary investment program created to offer California local agencies greater access to the financial markets through the Pooled Money Investment Board program. In the 2007-08 fiscal year, 2,689 local agencies participated in LAIF, with deposits averaging $21.8 billion for the fiscal year.
Found here –
Legislative, Judicial, and Executive
0950 State Treasurer
** And **
35 – SECURITIES MANAGEMENT
The Securities Management Division consists of the Securities Clearance Section and the Debt and Data Management Section.
The Securities Clearance Section is responsible for the clearance, settlement, income collection, and accountability of all securities: (1)purchased or sold for investment by the State Treasurer, (2) pledged to the State Treasurer to secure the performance of an act or duty, and (3) held as collateral for the Treasurer’s Time and Demand Deposit Programs. Securities are held in outside depositories as well as the State Vault.
The Debt and Data Management Section is responsible for monitoring and managing the State’s fiscal agent accounts; debt service payments on Book-Entry bonds to the Trust Depository and certificated bonds to the Fiscal Agent bank; as well as the payments for Revenue Anticipation Notes (RANs) and Warrants (RAWs). The Section performs accountability and reconciliation on Debt Service Reporting, Un-presented Accountability and Cash Accountability. In addition, the Section is responsible for safekeeping personal property and other items in the State Vault at the request of State Agencies; providing custody and protection of securities inside the Vault; and providing Vault tours for students, dignitaries and legislators.
30 – PUBLIC FINANCE
The Public Finance Division is responsible for selling all State of California general obligation bonds, revenue anticipation notes, commercial paper notes, revenue bonds, and any other indebtedness including securitization of assets. The Division also provides trust services for most state bonds. Interim financing from the Pooled Money Investment Account is also arranged to meet the immediate cash needs of the various bond programs. Interest costs are minimized through a planned bond-marketing program. This program includes disseminating information to bondholders through the Investor Relations Program.
The Division also assures compliance with federal tax laws applicable to state debt by investing and reinvesting bond sale proceeds as needed to meet federal yield restriction requirements, tracking expenditures, and computing and rebating arbitrage profit or other payments to the federal government.
0 Investment Services 17.1
20 Cash Management 49.7
30 Public Finance 53.2
35 Securities Management 27.2
50.01 Administration and Information Services 90.1
50.02 Distributed Administration 0
Totals, Positions and Expenditures (excluding Infrastructure) 237.3
Infrastructure Expenditures –
Totals, Positions and All Expenditures 237.3
** my note –
These are not the only places where this function is listed – where its activities apply to other agencies, there are commissions, boards and departments also funded to do these same things. Listed on many of them are the same board members, although the boards are listed and their funding listed independently. I would wonder to what extent they are paid to sit on each of the different functioning boards, agencies and commissions.
It looks like certain professions can make plenty of money with the State government that is too broke to pay attention or serve schools or make good on their debts, among other things without robbing the population of every last cent they will ever have.
60 – ADMINISTRATION AND DISBURSEMENTS
The Executive Office and the Administration and Disbursements Division provide executive direction and support services to programs in the State Controller’s Office. The primary responsibilities include the establishment and maintenance of communications between the department and the public, the news media, budgeting, personnel, accounting information systems, and business services. Disbursements’ primary responsibility is to produce and mail or deliver all payments of the state’s obligations, including personal income tax refunds, payroll, and retirement payments. The Information Systems Division develops, maintains, and operates all of the department’s mainframe, client-server and web-based systems; and oversees the planning, procurement, use, and maintenance of information technology hardware and software.
60 Disbursements and Support 381
** my note – isn’t this the actual state budget for the mainframe infrastructure and public dissemination online – why would that appear in other budget requirements elsewhere?
Found here – Legislative, Judicial, and Executive 0840 State Controller
also – adding 9.6 million for this HR Management System to change existing employ history.
MAJOR PROGRAM CHANGES Back to Top
* Human Resources Management System (aka 21st Century Project) – The Governor’s Budget proposes to add $9.6 million General Fund and 76.7 one-year limited term positions in 2009-10 to continue activities associated with the replacement of the existing employment history, payroll, leave accounting, and position control systems.
** my note **
Yes, there’s more but I don’t know whether it really interests anyone or not. I would love to go through and choose every last place where info-tech systems and cross-over data compilation systems are either being put in, upgraded or added under some new program. They show up everywhere. I’ve heard of redundancy but usually it is to the goal of more efficiency, not less.
9100 Tax Relief
California taxpayers are provided assistance through a variety of tax relief programs. Additional relief is provided to lowincome
senior citizens and disabled persons. Tax relief also is provided to individuals who agree to hold their land as open
space under the Williamson Act of 1965. This budget also provides payments to cities and counties to help defray revenues
lost as a result of tax relief programs.
10 Senior Citizens’ Property Tax Assistance 2009-2010 – Zero-
20 Senior Citizens’ Property Tax Deferral Program 2009-2010 – Zero-
30 Senior Citizen Renters’ Tax Assistance 2009-2010 – Zero –
50 Homeowners’ Property Tax Relief 2009-2010 $444,578 (In thousands)