Essay On California Budget

543 Words3 Pages
California’s Budget State constitutions require balanced budgets. This has not been the case for California. With a combination of a constant flow of immigrants to greatly increasing the attention on crime, balancing California’s budget has become a huge challenge. The state has faced one projected state revenue deficit after another since the recession in 2002. The exception being in 2006 when there was an increase in the economy and resulted in a balanced, on-time budget. Sadly that was short lived. Like many other states, California relies on many different taxation for its general budget. The larger sources of the states’ revenue comes from personal income tax, sales tax and bank/corporation taxes. The smaller sources of revenue comes from motor vehicle, fuel tobacco, alcohol and insurance taxes. Another source is property taxes that are levied by local governments. However, the state has become more dependent on personal income tax for its revenue. The annual state budget consists of thousands, large and small financial commitments. The largest areas being public education (K-12), higher education, prisons and health and welfare. These four areas account for 90% of the general fund. The balance goes to projects like…show more content…
Such as the sales tax increase in 1933 and the repeal of the inheritance tax in 1982. They also passed Prop. 30 in 2012 which temporarily increased sales and income taxes for individuals with an annual income over $250,000 to offset declining state revenue. The most dramatic of them all was the passing of Prop. 13 in 1978. This was an initiative that reduced property tax by 57%. However, the public doesn’t always agree to raise taxes. For instance, in 2009, the public said no to five proposals that would cap spending and temporarily increase sales tax by .25 percent, income tax by 1 percent and motor vehicle fees by .50

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