1. Budget Reductions Kaplan University Unit 8-Finance and Public Budgeting Dr. David Thomason

2. Economics and Public Policy: Here’s How they Met Public Policy is concerned with the role that economics plays in the broader good of those in a particular geographic or organized area. And public policy is concerned with the struggle of competing value systems to claim the legitimate use of power. Politics is the struggle of competing value systems to claim the legitimate use of power. And the purpose of that claim on power is to control and allocate the scarce resources.

3. When Revenue Falls Below Projections Public Budgeting sometimes cannot account for changes in the economy, sales tax revenue, property tax, and personal income tax. Sometimes, government spending is ahead of revenue and the result is a budget shortfall.

4. NCSL (Natl. Conference of State Legislatures) Update on State Budget Gaps: FY 2009 & FY 2010 The National Conference of State Legislatures (NCSL) has released its Update on State Budget Gaps: FY 2009 & FY 2010 on January 30, 2009. States closed a cumulative gap of nearly $40 billion as they prepared their FY 2009 budgets, and now face a sizable gap of an additional $47.4 billion that has opened since budgets were completed. The report also shows half of the states are projecting a cumulative shortfall of $84.3 billion for FY 2010, a gap likely to grow as more states assemble revenue and expenditure forecasts for the coming fiscal period. This report provides an up-to-date account of states budget conditions while NCSL's last State Budget Update: November 2008 provides a 60-page report which also gives an overview of FY 2009 revenue performance for each state and highlights actions legislatures are expected to take to close FY 2009 budget gaps.

5. NCSL 2009 Report on Budget Gaps http://www.ncsl.org/Portals/1/documents/pub s/statebudgetgaps.pdf http://www.ncsl.org/Portals/1/documents/pub s/statebudgetgaps.pdf

6. Let’s take a look at the Budget Discussion in Texas as Case Study http://www.texastribune.org/texas-taxes/2011- budget-shortfall/budget-writers-differ-on-where-to- start/ http://www.texastribune.org/texas-taxes/2011- budget-shortfall/budget-writers-differ-on-where-to- start/ http://www.texastribune.org/texas-taxes/2011- budget-shortfall/ http://www.texastribune.org/texas-taxes/2011- budget-shortfall/ http://www.mysanantonio.com/news/politics/budget_ shortfall_victim_medicaid_107856609.html http://www.mysanantonio.com/news/politics/budget_ shortfall_victim_medicaid_107856609.html

7. Budget Deficits and Party-Politics, Etc. http://www.shapirofortexas.org/posts/16- senator-shapiro-on-the-state-budget http://www.shapirofortexas.org/posts/16- senator-shapiro-on-the-state-budget http://www.examiner.com/political-buzz-in- modesto/schwarzenegger-on-budget-we- can-t-wait-for-jerry-brown-video http://www.examiner.com/political-buzz-in- modesto/schwarzenegger-on-budget-we- can-t-wait-for-jerry-brown-video

8. California http://gov.ca.gov/index.php?/fact-sheet/14147/ FY010-11 Budget Proposal: Solving California’s $20 Billion Deficit The Governor is proposing a responsible budget that fully funds education, provides Californians with a five cent tax cut per gallon of gas, and continues to build on bold reforms to contain future costs, streamline government and continue to put children first in our education system while closing a $19.9 billion gap between revenues and projected state expenditures.

9. California California’s leaders have shown they can work together. Democrats and Republicans have bent party ideology to balance the budget, reform education and ensure a clean water supply for future generations. Now is the time to work together with our partners in the federal government to regain control of California’s finances and put our leaders in charge of decisions impacting our state’s tax payers. The $19.9 billion budget deficit includes: $6.6 billion: Current budget year shortfall due to slow revenues and nearly $5 billion worth of federal and state court decisions that mandated spending on programs cut in the 09-10 budget. $12.3 billion: Projected shortfall for 2010-11 due to unfunded mandates and a still slow economy. $1 billion: Modest reserve. To address the problem, the Governor’s Budget proposes a combination of spending reductions, alternative funding, fund shifts and additional federal funds to close the $19.9 billion budget gap. The Governor is also declaring a fiscal emergency and immediately calling the legislature into a focused special session to prevent the shortfall from growing and to avoid further cuts.

10. California Continued http://www.myfoxla.com/dpp/news/politics/cal ifornias-budget-crisis-20100902 http://www.myfoxla.com/dpp/news/politics/cal ifornias-budget-crisis-20100902