budget crisis

Students protest tuition hikes in California

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(h/t CSPANjunkie)

It's hitting the fan in California as students protest the grotesque 32% hikes in their college tuition.

Angry students at the Davis, California, branch of the University of California refused to vacate the school's administration building Thursday evening in a show of defiance and protest over a 32-percent undergraduate tuition hike instituted by the California Board of Regents earlier in the day.

About 50 students remained in the building, which was supposed to close by 5 p.m. PT (8 p.m. ET), UC Davis spokeswoman Claudia Morain told CNN. At one point, as many as 150 students were at the building protesting the tuition increase, she said. She said she hopes campus police can resolve the issue without the need to make arrests.

CNN affiliate KCRA captured footage of students outside the building shouting, "Who's university? Our university!"

Nearly 400 miles south and hours earlier, hundreds of students marched and chanted against the increase while outside the UCLA building in Los Angeles where regents met to vote on the hike.

Protesting students and others say the increased tuition will hurt working and middle-class students who benefit from state-funded education. But officials argue that a fee increase and deep cuts in school spending are necessary because of a persistent budget crisis that has forced reductions across California's state government.

California is in bad shape and it's only to get worse.

Hullabloo:
And there's no end in sight:

In what's become a depressingly familiar story over the last 2 years, California faces another big budget deficit:

Less than four months after California leaders stitched together a patchwork budget, a projected deficit of nearly $21 billion already looms, according to a report to be released Wednesday by the state's chief budget analyst.

The new figure -- the nonpartisan analyst's first projection for the coming budget year -- threatens to send Sacramento back into budgetary gridlock and force more across-the-board cuts in state programs.

As the article points out, the deficit for 2009-10 (current fiscal year) is $6.3 billion, and the projected deficit for 2010-11 is $14.4 billion. Arnold is already talking about closing it with cuts...



Poll: CA Voters Reluctant To Change State Budget Process

It's astounding to me, that California voters still remain so largely uninformed (or indifferent) about the root causes of the state's yearly fiscal crisis. Those who want to change things have an uphill battle:

Reporting from Sacramento - Backers of an overhaul of California's government, who hope to leverage disgust with Sacramento into support for changing how the state raises taxes and spends money, have a difficult path ahead, according to a new poll of California voters.

Major segments of the electorate see the state's problems as the product of unrestrained lawmakers driven by special interests to waste taxpayer money, and reject arguments that structural issues with the state's Constitution and government institutions are to blame.

Voters don't want the tax code overhauled in the ways that many fiscal experts promise would tamp down the wild revenue swings that have led to a constant state of budget crisis in California. They don't want the Constitution changed to allow a simple majority of lawmakers to push a budget onto the governor's desk, as most other large states allow. And they don't want the state to touch Proposition 13 property tax restrictions, even if residential property taxes would remain strictly limited.

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This is pretty big news, guys. Remember, the Massachusetts plan is the model they want to use for national reform - and already it's beginning to crack under the economic strain.

This is what happens with "bipartisan," market-friendly compromise: Band-aid solutions that can't handle a massive load. And it's exactly why we need single-payer universal healthcare: because it's the only plan cheap enough to stay solvent through tough times.

Overseers of Massachusetts’ trailblazing healthcare program made their first cuts yesterday, trimming $115 million, or 12 percent, from Commonwealth Care, which subsidizes premiums for needy residents and is the centerpiece of the 2006 law.

The board of the Connector Authority made the cuts as officials confronted two side effects of the recession: the state budget crisis and a surge in enrollment by the recently unemployed.

The largest share of the savings will come from slowing enrollment. An estimated 18,000 poor residents who qualify for full subsidies, but who forget to designate a health plan, will no longer be automatically assigned a plan and enrolled and thus could face delays in getting care.

The board also eliminated dental coverage for the poorest residents enrolled in Commonwealth Care, roughly 92,000 people who currently are the only ones in the program who receive that care. Regulators said that would save $10 million. Dental coverage was retained in the budget approved by lawmakers last week, and now it falls to the governor to decide its fate.

Also hanging in the balance is the health insurance status of 28,000 legal immigrants whose Commonwealth Care coverage was dropped in the budget lawmakers approved for the fiscal year that begins July 1. Governor Deval Patrick has until Monday to decide whether to veto any of that budget, which set aside $116 million less for Commonwealth Care than he proposed.