Bay Area

California Moving into Next Budget Year With a $31 Billion Surplus, Analysts Say

“Under our current law and policy approach, we estimate the general fund revenue will reach $202 billion in the budget year and result in a surplus of about $31 billion for that budget year,” said Gabriel Petek, legislative analyst of the State of California, referring to LAO’s projections for fiscal year 2022-23.

Published

3 years ago

November 28, 2021

Oakland Post

California has the strongest economy of any state in the country with an estimated Gross State Product of $3.0 trillion. If it were a country, California would be the fifth-largest economy in the world.

By Tanu Henry, California Black Media

California is expected to move into the next fiscal year, which begins July 1, 2022, with a whopping $31 billion surplus, according to estimates from the independent Legislative Analyst’s Office (LAO).

The LAO announced the anticipated surplus during a news briefing last week.

Petek said the large surplus reflects a number of trends. Among them are surpluses in the state current operating budget, money left in the economic reserve from the last fiscal year, higher revenues than projected for the last two years, etc.

“Revenue collections have grown rapidly in recent months, coming in over $10 billion ahead of budget act expectations so far this year. Underlying this growth is a meteoric rise in several measures of economic activity,” LAO report reads.

That windfall in the state reserve could mean a rebate for taxpayers or more money for education and other public spending.

State spending is expected to reach a cap set by California voters through a ballot measure in 1979 called the Gann Limit. When that happens, the state is compelled to return money to taxpayers by lowering taxes, sending out rebates or spending money on education.

Salena Pryor, president of the California Black Small Business Association (BSBA) says she is encouraged by the investments the state has made to aid small businesses and to improve the overall economic outlook for Californians most impacted by the pandemic.

She hopes the state will use monies from the surplus to sustain some of its initial investments.

“There is still a lot more work to do. Forty-one percent of Black small businesses have closed permanently due to COVID-19, so further investments into start-ups and restarts would greatly benefit our community,” she said.

“California has no peers – continues to have no peers. We are world-beating in terms of our economic growth,” said Gov. Gavin Newsom, speaking at the California Economic Summit earlier this month.

“In the last five years, no western democracy has outperformed the state of California. The United States has not… Germany, Japan, the U.K… no other western democracy has outperformed this state in our economic output of 21% GDP over the last five years.”

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The printed Weekly Edition of the Oakland Post: Week of July 24 – 30, 2024

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Bay Area

Op-Ed Senate Bill 966 Threatens Health Equity in East Bay

My East Bay community is struggling to get by. A proposed State Senate bill would set us back even further. Serving the East Bay community has been my life’s work and my greatest joy. After leaving the Bay Area to complete my seminary, I returned home to found The Community Church in Oakland. From the outset of my time as the church’s pastor, I have been guided by the belief that my service must extend beyond the pulpit, because the health and economic needs of my community are so great. Our church has organized free food banks, COVID-19 testing clinics, and a housing and re-entry program for those suffering from addiction.

Published

1 week ago

July 19, 2024

Oakland Post

Rev. Dr. Lawrence E. VanHook

By Rev. Dr. Lawrence E. VanHook

Special to the Post

My East Bay community is struggling to get by. A proposed State Senate bill would set us back even further.

Serving the East Bay community has been my life’s work and my greatest joy. After leaving the Bay Area to complete my seminary, I returned home to found The Community Church in Oakland.

From the outset of my time as the church’s pastor, I have been guided by the belief that my service must extend beyond the pulpit, because the health and economic needs of my community are so great. Our church has organized free food banks, COVID-19 testing clinics, and a housing and re-entry program for those suffering from addiction.

Through my service, I have seen the challenges that our community members are facing. Oakland, my hometown, has the third-highest rate of violent crime in the state. The local economy is strained. Oakland-based businesses are leaving our community because they’re struggling to get ahead.

Both East and West Oakland has disproportionately high rates of respiratory illness due to heavy air pollution. While our local efforts have brought some aid to those in need, we are also counting on our state elected officials to help us address the systemic health disparities afflicting the community.

Chief among the health concerns of community members is having reliable and affordable access to prescription drugs. Equitable access to medications gives us the peace of mind that we can keep ourselves and our families healthy and safe. Our community should not have to choose between paying rent or purchasing prescriptions.

Unfortunately, rather than taking action to combat soaring prescription drug prices, some California lawmakers are pushing legislation that could raise patient costs at the pharmacy counter.

The Legislature is currently considering SB 966, a bill backed by special interests that would undercut the few tools we have to keep prescription drug costs contained, letting big drug companies increase their prices, profiting on the backs of working families – some of whom already live paycheck to paycheck.

SB 966 would target the fundamental programs through which small businesses, unions, and government health programs are able to offer their employees and members quality and affordable healthcare. Millions of Californians rely on these plans to obtain essential medications at the lowest-possible cost.

The bill would make it illegal for employers and unions to incentivize the administrators of their prescription drug plans to negotiate for the lowest possible cost for prescriptions. Right now, small businesses and unions can choose to pay these administrators more for taking on big drug companies and securing discounts – a choice that will be outlawed under this bill.

As a result, employers will have no leverage to stop big drug companies from setting sky-high prices, disproportionately impacting working families.

As these health costs quickly add up, employers will have little choice but to pass the increases down to their employees. That means California patients will see higher healthcare costs and co-pays.

From my perspective, most concerning is that the bill would exacerbate the health disparities impacting my community and other underserved populations. If SB 966 becomes law, the most vulnerable may be forced to skip prescription doses, stop filling their prescriptions, and avoid essential care.

By rejecting this cash grab by big drug companies, our state elected officials can send a clear message that they stand with the community, patients, and working families.

We cannot afford SB 966.

Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.