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Budget Facts
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.

California tax and business climate

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.

Near-criminal fiscal mismanagement
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%

Runaway bureaucracy
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

Prison spending
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

Pension crisis

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.

Illegal immigration challenge
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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2009.  Sponsored by the Howard Jarvis Taxpayers Association 
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