Brown unveils budget proposal with zero deficit

[Perry Mason]

Texas taxes oil, 4.6% severance and 7.5% for natural gas, makes a big difference overall on the budget. Texas doesn't cap property taxes the same way California does. Texas gets more of a return on federal tax dollars. Bottom line, Texas puts more of it's tax burden on natural resources and property taxes, California doesn't and that's why income and corporate taxes can be low.

[oldtrader]

The thing is, California has a lot of restaurants opening. This is one place a lot of the new job growth has been taking place.

Problem is the STEM jobs in California is not where the job growth is taking place. Understanding what is STEM jobs, the jobs of the present and future. These are the higher paying jobs.

http://www.economicmodeling.com/2011...-concentrated/

In California there are less people working at stem jobs, than there were in 2001. California, on the other hand, still has more than 13% (about equal to it's percentage of the total population of the nation’s overall STEM-related workforce (just over 1 million estimated jobs) . But it shed 19,000 STEM jobs in the last decade (a 1.75% decline) and saw its above-average concentration slightly decline. And remained flat in 2012

California has gained jobs, but they are not in the high paid fields. And a lot of the STEM jobs are going to Asians in California, which is the main reason the Asian population has grown so much in places like the Silicon Valley.

According to a study for the State of California done by California State University at Sacramento, a major problem in California is they are not educating enough people in the Math and Sciences that the STEM jobs require to get into college for a STEM education track. Not enough students willing to work hard enough in college to follow the STEM job path.

People get excited over some restaurants opening. Restaurants are cutting hours to 28 hours or less for most employees, so they do not have to provide Medical Insurance under Obamacare. Hire more people each working less hours, is not a big boost to the economy. Helps lower the unemployment rate however. To provide the Obamacare mandated medical insurance to all their employees costs more than the restaurant earns as a profit, is the reason for this.

It is the STEM jobs leaving California (difference is 100,000 last 10 years advantage Texas) and going to Texas, Washington, Nevada, Arizona, and not being replaced is what is hurting California.

[Leonard64]

Originally Posted by mongozx

You know you're desperate when you post old links about 4 restaurant closings in the OC in a CA budget thread. Some people are just bored out of their minds and gots nothin better to do, ey Leonard? *nudge nudge*

Hi,

Not bored, just did a quick search and that is what came up. The budget impacts people and businesses. What happens in CA impacts my friends, family and employees In CA, so I am interested in such subjects.

More (or fewer) restaurants impacts lower middle class and college students the most and does not add a lot to the bottom line, but every little bit helps (or hurts). Depends on the direction it is going.

[Leonard64]

Originally Posted by Fontucky

Considering where he lives...

I know, the low 70 degree weather I enjoyed Friday and Saturday while working in bright sun light was hard to take. Then a nice drive through beautiful areas to shop, dine and just enjoy the balance of the day, on uncrowded roads, was just soooooooo boring. Especially in winter. Sunday a little rain in the AM, short sleeve shirt weather the balance of the day, got a little more done on the deck. I guess some would prefer traffic and crowding to enjoying nature and a relaxed lifestyle. I remember Fontana and it used to be nice. now ......... well I would not live there now and a friend who moved into the area and wishes he hadn't.

This winter looks to be like last winter here, bad, bad, bad, .... all 4 days of it. Spring started in February. This week I saw some plants budding and my roses refuse to go dormant. Yep terrible place to live. Biggest problem is deciding what to do, with so many choices, except no beach (Drat, love the beach). The extra money in my pay check makes it easier to decide as well, I just do them all.

[Fontucky]

No need to justify where you live if you're secure with your decision to relocate.

[EdJS]

Originally Posted by oldtrader

While Brown raises taxes to balance the budget, many of the other states are cutting income taxes and taxes on corporations. This combination will drive even more middle and upper class people and businesses out of California. And these numbers accelerate every year the past 5 years.

Broken California: Wasting Money and Hurting Business - Forbes

Companies Leaving California In Record Numbers - Millbrae, CA Patch

Companies Leaving California In Record Numbers

In past 10 years, the growth in STEM jobs (educated in math and science such as IT, Engineering, Math based) has been 0% in California, and over 5% in the country, and almost 14% in Texas.

Components of Job Growth | Exurbia Chronicles

The big increase in jobs in California have been in the lower paid range, not the STEM jobs that make a state prosper as California did in the past.

With new higher taxes on the rich, and corporations, and plans for more in the future, just think the exodus may be much faster than in the past. Browns optimistic projections are based on more revenue, and not the lower revenue as more companies and middle to upper income people leave the state.

Other states are in the process of making their states more attractive to business and high paid jobs. Other states are cutting business and income taxes, while California raises theirs. Other states are cutting red tape and time to set up a business, in California it gets worse. Other states are giving financial help to set up in their states, but California does not. All reasons that California is considered the least friendly business state.

CNBC did an extensive study, that shows there is a lot of factors that businesses and companies consider when they decide where to put in a business or move one to. Things that people study, to decide where they may want to move, and see the best future. Note Texas is #1, and California is #40. Cost of doing business Texas is #28, and California is #48, and even our low population state is #7. Many posters say California has such a great quality of life, but it is rated as only 20th best behind us small population states such as Colorado, Utah, Montana, Washington, Oregon, Idaho, Wyoming, North Dakota, South Dakota, Nevada, Arizona, and many others. Cost of living, Texas is #3 and California is clear down to #46. Something important to business is infrastructure and transportation, with Texas #1 best, and California clear down to #30. Business friendliness is Texas #12, and California #43 (note they rate business friendliness in California higher than some others do. Even education Texas beats California who is clear down to #33. Our little low population state beats both of them considerably at #16. As to the quality of the workforce, Texas is rated 7th best, and California is clear down to #23. As to technology and innovation both are high, but Texas beats California. As to the economy Texas is #5 and California is clear down to #43.

When you consider the above, and go through this chart, it is easy to see why people and companies are fleeing California. Why Brown's new taxes are not going to balance the budget. Last year, the expenses for the state went way over Brown's projections, and they will again this year.

All of those are links to opinion pieces, not news articles.

I don't need to be told that there are plenty of people whose opinion is that California is in bad shape. I read it here all the time.

[Leonard64]

Originally Posted by Fontucky

No need to justify where you live if you're secure with your decision to relocate.

Your right, there is no need. CA and TN are both great places to live.

[.highnlite]

Analyst agrees Brown's Calif. budget in balance
Posted: Jan 14, 2013 1:39 PM by The Associated Press

MOD CUT

SACRAMENTO, Calif. (AP) - The Legislature's nonpartisan budget analyst is agreeing with Gov. Jerry Brown that the state budget is balanced.

Analyst Mac Taylor issued the first review of Brown's budget on Monday. Taylor says that after years of multi-billion-dollar deficits, California has reached a point where its underlying expenditures and revenues are roughly in balance.

He commends the Democratic governor for emphasizing fiscal restraint and urges lawmakers to consider Brown's education reforms.

I know, the low 70 degree weather I enjoyed Friday and Saturday while working in bright sun light was hard to take. Then a nice drive through beautiful areas to shop, dine and just enjoy the balance of the day, on uncrowded roads, was just soooooooo boring. Especially in winter. Sunday a little rain in the AM, short sleeve shirt weather the balance of the day, got a little more done on the deck. I guess some would prefer traffic and crowding to enjoying nature and a relaxed lifestyle. I remember Fontana and it used to be nice. now ......... well I would not live there now and a friend who moved into the area and wishes he hadn't.

This winter looks to be like last winter here, bad, bad, bad, .... all 4 days of it. Spring started in February. This week I saw some plants budding and my roses refuse to go dormant. Yep terrible place to live. Biggest problem is deciding what to do, with so many choices, except no beach (Drat, love the beach). The extra money in my pay check makes it easier to decide as well, I just do them all.

Not sure why you left CA, you are celebrating a major national disaster.

[Leonard64]

Originally Posted by .highnlite

Not sure why you left CA, you are celebrating a major national disaster.

Uh, not in TN as it is raining right now. Notice we are colored white on the map and have No drought, unlike portions of CA.

I left for a whole host of reasons, including pleasing my wife, which is of MAJOR importance.

I still miss the beach and mild Winters, but all in all it is very nice here and I am wayyyy ahead financially. I have a beautiful home on a nice lot in a great area and am surrounded by green with views of the Smokies and no traffic and good friends. I can hike anytime I want and pay no Park fees, can be home in minutes if I wish and have dinner at one of many nice restaurants. I am feeling very spoiled most of the time. My friends and family in CA are beginning to agree with me, as they see how CA is going.

[Think4Yourself]

Originally Posted by oldtrader

The thing is, California has a lot of restaurants opening. This is one place a lot of the new job growth has been taking place.

Problem is the STEM jobs in California is not where the job growth is taking place. Understanding what is STEM jobs, the jobs of the present and future. These are the higher paying jobs.

Simply not true. 2/3rds of the jobs created in 2012 pay over $40k per year and the biggest fields experiencing job growth in the state are:

• Professional & Business Services: 90,800
• Education & Health Services: 48,800
• Trade, Transportation, Utilities: 42,000

States That Produce The Most Jobs (Not What You Think) - Careers Articles

The vast majority of net new job growth is coming from the middle and high end with the low paid service sectors (like restaurants) only making up about 1/3rd of new jobs. Compare that to Texas were more than 2/3rds of the new jobs pay less than $10 per hour.