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Budget Facts |
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Just last month, California voters
rejected tax increases by a two to one margin. Seldom have
so many Californians ever agreed on anything. But now the
politicians are again trying to raise taxes. They claim
that Californians need to pay more taxes and threaten to cut
vital services. But what are the facts?
We will expose additional areas of
waste in the days ahead. |
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California
tax and business climate |
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According to the Tax
Foundation, California had the the
sixth highest tax burden BEFORE California politicians
passed the largest tax increase in history
California currently has the
fifth highest unemployment rate in
the nation at 11.5%. California lost
706,000 jobs in the last 12 months and
2.1 million Californians are
unemployed.
Californians pay the
highest fees and taxes on our cars
in the nation
In a poll of 543 CEO's
nationwide by Chief Executive Magazine California was ranked
worst state to do business.
Michigan came in second
Pacific Research Institute
ranks California 49th in economic
freedom with 50 being worst
The Tax Foundation ranks
California 48th in business tax
climate with 50 being worst
The Small Business &
Entrepreneurship Council ranked California 48th in business
tax climate in a separate study with 50 being worst
From January, 2001 to
February, 2009 California lost 523,500 manufacturing jobs.
Altogether we lost 903,400 jobs with an average pay of
$63,000. In the same time period we gained 832,000
jobs with an average pay of $44,000
California lost 1.4 million
people from 2000-2008. Arizona and Texas each gained
over 700,000 and Nevada gained nearly 400,000. |
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Near-criminal fiscal mismanagement |
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Gray Davis increased spending at a
much faster rate than the growth of population and
inflation. Under Davis,
spending increased by 6.73% a year while population plus
inflation grew by only 4.83%
Gray Davis was recalled for his
fiscal mismanagement of California
Governor Schwarzenegger has
increased spending at a faster rate than Davis.
Schwarzenegger has increased spending
by 6.75% a year compared to growth in population and
inflation of 4.98%
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Runaway
bureaucracy |
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The state government has over
240,000 employees.
California
hired 47,094 new workers in 2008 and is expected to hire
another 40,000 in 2009
In 2007, the
average salary
of a state employee was $64,044. The average salary in
California for a full time worker is $36,000
Over 16,000 state workers
earn more than $100,000 per year
Beginning state workers
receive seven weeks of paid vacation a year counting both
vacation time and holidays
State workers receive
defined-benefit pension plans that are many times more generous
than the 401k plans common in the private sector
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Prison
spending |
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California has a total Corrections
budget of $9.7 billion
California spends $48,843 per
inmate while the other nine most populous states spend an
average of only $27,237 per inmate
The
median pay for a prison guard in California is $67,000
and as of 2006 more than 3,600 prison guards earned more
than $100,000. The median pay
for a prison guard in other states is $36,140
Utilization of private
prisons typically results in savings of 15 to 25 percent on
construction and 10 to 15 percent on management |
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Pension
crisis |
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Over $30 billion is
paid to government pension funds in California annually—about
¼ is paid by employees and the rest by taxpayers. Taxpayer
contributions will increase by at least $5 billion beginning
in 2011 to make up for market losses this year.
We estimate over
13,000 retirees receive pensions that exceed $100,000
annually. This includes 3,000 STRS retirees,
5,000 CalPERS retirees, 1,000 judges, and the rest from
charter cities, 1937 act counties, and the UC system.
About 80 retirees a
week are joining the $100,000 pension club, and
the number will go higher as more baby boomers approach
retirement age.
Over 12% of retirees (120,000) receive
disability benefits which means up to 50% of their
retirement income is tax-free. But the %s range from 0% to
100% by retirement system, because of differing policies and
practices of individual retirement boards in administering
disability retirements.
In 2007 funds were over 90% funded. Due to
recent market losses and poor investment returns it is
estimated that funds are now less than 70% funded. |
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Illegal
immigration challenge |
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California is
estimated to be home to 3,200,000 illegal immigrants.
Approximately 1 in 4 illegal immigrants nationwide lives in
California.
California offers illegal immigrants a wide range of
taxpayer funded benefits. California is one of only
nine states that offers in-state college tuition to illegal
immigrants who, unlike American students from Arizona,
cannot legally work in the US.

Illegal immigration costs
California $10.1 billion annually, while illegal immigrants
contribute about $1.6 billion per year in taxes.
Illegal immigration results in a net loss to California
citizens of $8.5 billion. These costs are mainly in
education, incarceration and health care benefits.
- Based on estimates of
the illegal immigrant population in California and
documented costs of K-12 schooling, Californians spend
approximately $7.7 billion annually on education for
illegal immigrant children and for their U.S.-born
siblings. Nearly 15 percent of the K-12 public
school students in California are children of illegal
immigrants.
- Uncompensated medical
outlays for health care provided to the state's illegal
immigrant population amount to about $1.4 billion a
year.
- The cost of
incarcerating illegal immigrants in California's prisons
and jails amounts to about $1.4 billion a year (not
including related law enforcement and judicial
expenditures or the monetary costs of the crimes that
led to their incarceration.)
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