Easier Solution to Stem Budget Volatility

Loren Kaye
President of the California Foundation for Commerce and Education

Last week I discussed Assembly Speaker Perez’s proposal to create a new “rainy day” budget reserve. He suggests capping the amount of capital gains tax revenues available for deposit in the General Fund. Capital gains revenues above the cap would instead be transferred to a reserve. Once the reserve was filled, excess revenues would be [...]

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Speaker’s “Rainy Day” Reserve Proposal: Reform or Power Play?

Loren Kaye
President of the California Foundation for Commerce and Education

Assembly Speaker John Perez has announced his support for a ballot measure establishing a new “rainy day reserve” for the state budget. Still to be answered: is his proposal more responsible than the measure already on the November, 2014, ballot? In other words, what is the problem with the measure slated for 2014 that the [...]

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From the Department of Upside-Down Logic

Loren Kaye
President of the California Foundation for Commerce and Education

Sometimes it’s hard to keep your story straight. Like daffodils at Spring, legislators rise every year to wag their fingers at the price of gasoline. First to the bar this year is Senator Mark Leno, who proposes legislation to create a bureaucracy to investigate “whether fuel price manipulation is occurring” by “comparing real time prices [...]

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State Leaders Hit the Road for California

Loren Kaye
President of the California Foundation for Commerce and Education

With two years of dealing with nothing but the broken state budget behind him, for now, Governor Brown at long last has shifted his attention to economic development. Leading a small army of state bureaucrats and business leaders on a long march through China, the Governor has declared his single focus is on economic issues: [...]

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Innovation in Tax Increases

Loren Kaye
President of the California Foundation for Commerce and Education

Stealth taxes have been part and parcel of public finance in Sacramento ever since Proposition 13 required a two-thirds legislative vote to raise new taxes. Hidden taxes and dubious fees became so rampant that voters adopted Proposition 26 in 2010 to bring transparency and accountability to legislative (and local government) revenue raising. Prop 26 simply [...]

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Improving on Recent Regulatory Reform

Loren Kaye
President of the California Foundation for Commerce and Education

Yesterday I presented testimony to the Assembly Committee on Accountability and Administrative Review regarding the implementation of legislative regulatory reforms enacted in 2011. Following are excerpts from that testimony. This morning I would like to spend just a few minutes talking about SB 617 and regulatory reform efforts in a historical context, the advantage of [...]

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Gov. Brown Endorses Enterprise Zones

Loren Kaye
President of the California Foundation for Commerce and Education

OK, maybe not by his words – but certainly by his deeds. At his premier policy address earlier this year, Governor Brown touted the business retention and expansion efforts by his GO-Biz office (“…directly assisted more than 5,000 companies this past year”), but then claimed the state’s Enterprise Zone Program is “not working.” His appointees [...]

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Tax Windfall or Not – State Leaders should Prepare a “Rainy Day” Fund.

Loren Kaye
President of the California Foundation for Commerce and Education

California taxpayers paid $5 billion more in taxes in January than state officials anticipated. So is this an early sign of a robust economic recovery, or simply taxpayers paying in advance of when the bean-counters expected? I lean toward the latter, since both tax changes and tax uncertainty have been far more apparent than widespread [...]

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Health Insurance Rate Shock Looms for California Consumers

Loren Kaye
President of the California Foundation for Commerce and Education

State-run health insurance exchanges are one of the most important developments from the federal Affordable Care Act (ACA). True to form, California was an early adopter of insurance exchanges, approving legislation in 2010. Called “Covered California,” the exchange is up-and-running with the help of federal grants and state administration support. California has also opted in [...]

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The Biggest Obstacle to Increasing School Spending

Loren Kaye
President of the California Foundation for Commerce and Education

It’s almost cliché to declare that California spends more on K-12 education than any other single budget program. Public schools are obviously a top priority for increased state funding and for the attention of state policy makers. But schools aren’t the most richly-funded government function. That distinction goes to Medi-Cal, the state’s healthcare program for [...]

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