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XCalifornia budget balancer
Try your hand at eliminating the red ink in California's budget.
The state's budget shortfall for the rest of this fiscal year and next, estimated to be $28 billion, is the size of the total general fund budget of 12 states combined: Delaware, Idaho, Maine, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont and West Virginia.
We've provided a wide range of options — spending cuts and tax increases — that cover most of the proposals made by Democratic or Republican lawmakers. It's not easy, but it can be done.
More: Follow the latest budget news | 2010 budget details | Brown's proposed budget | Join the debate
Why can't I cut: Services for illegal immigrants? | Government pensions? | Boards and commissions?
Step One: Depending on how much is spent on public schools, the $28-billion deficit could grow, stay the same or shrink. Set your starting point by addressing K-12 education first.
K-12 schools
Funding for public schools, which makes up the biggest portion of state spending, is complicated by several factors. A voter-approved constitutional guarantee sets school funding at roughly 40% of the general fund, but that sum has dropped dramatically as tax collections have eroded. Spending — about $8,700 per pupil in the 2008-09 school year — is already well below average. In addition, the state is losing $2.2 billion in federal funds that went to schools this year. Decide how much of the states' limited revenues should go to schools before tackling the budget deficit.
Step Two: Make cuts. Slide the bars to reduce or eliminate funding in some areas. Flip the switch on others that require all or nothing choices.
Colleges and universities
In 1990, the state paid 78% of the cost of educating a University of California student; now that figure is 48%, according to UC. Enrollment at California State University campuses has shrunk, and faculty in both the UC and Cal State systems have faced furloughs. Student fees, meanwhile, have roughly tripled in the last decade. Community colleges serve 2.5 million students each year, with fees, at $26 per unit, the lowest in the nation. Recent cutbacks in that 110-campus system have reduced class offerings.
Funding for UC campuses
The state pays roughly $12,900 per full-time student at UC, for a total of $2.7 billion. Cuts to that subsidy would probably result in higher tuition or reduced course offerings.
Funding for Cal States
The state pays roughly $7,500 per full-time student at CSU campuses, for a total of $2.5 billion. Cuts to that subsidy would probably result in higher tuition or reduced course offerings.
Existing CalGrants
Make proposed cut
Eliminate financial aid CalGrants for 211,000 students attending public and private colleges and universities.
New CalGrants
Make proposed cut
Eliminate all new CalGrants financial aid awards, affecting 80,000 students attending public and private colleges and universities.
Close community colleges
Close some or all of the 110 campuses in the community college system, a traditional gateway into Cal States and UCs for students seeking four-year degrees.
Funding for community colleges
Raise student fees, currently the lowest in the nation, from $26 per unit to $40, and lower state spending an equal amount. If you shut down the 110-campus system, raising fees is not an option.
Public safety
The state's overcrowded prisons have been the fastest growing area of spending in the state budget. That growth has been driven in part by voters' approval of numerous tough-on-crime statutes, such as three-strikes and Proposition 9, which makes it harder for prisoners to get paroled. Federal courts recently seized control of providing medical care behind bars after inmates died from lack of care. That has further driven up costs.
Release prisoners
The state spends an average of $51,000 per year for each prisoner. Releasing 40,000 of the state's 170,000 prisoners is estimated to save just over $2 billion.
Illegal-immigrant inmates
Make proposed cut
Turn over about 19,000 illegal-immigrant inmates to federal authorities for deportation. Tried previously without success.
COPS program
Eliminate up to $100 million, or all funding for the Citizens' Option for Public Safety Program [COPS], which pays for enhanced public safety services for local law enforcement entities.
Prison rehabilitation
Make proposed cut
End all substance abuse, vocational training and rehabilitation programs in prisons not mandated by courts.
Other
The majority of state government functions, from state parks to the court system to the Department of Motor Vehicles, total only a fraction of the state budget.
Cut state payroll
Make proposed cut
Reduce state payroll by 10% through pay cuts or additional furloughs to save $1 billion. The cuts exclude employees of the Legislature, judicial branch and state colleges and universities.
State parks
Eliminate money for state parks. If the entire $130 million in state funding is cut, parks would be forced to rely only on fees.
Cut Legislature's budget
Cutting the Legislature's budget in half would save $130 million. Deep cuts would result in layoffs and closure of district offices and affect all aspects of operation.
California Conservation Corps
Make proposed cut
Eliminate the California Conservation Corps, a program that puts young people to work responding to natural disasters (fires, floods) and maintaining parks.
Step Three: New revenues. Some of these proposals raise taxes, others extend taxes currently set to expire.
Taxes and revenues
Tax collections in California have dropped by roughly 20% since the peak of the housing bubble. California relies heavily on income taxes, which tend to be volatile. Property taxes are capped under Proposition 13. California ranks 15th highest among states in taxes and fees collected per $100 of personal income, at $17.22, according to the Department of Finance.
Gas tax
Raise the gas tax. Proposals range from 25 cents up to $1 per gallon. Maximum revenue raised would be $15 billion, which accounts for projected changes in how much people would drive.
Temporary tax hikes
Make proposed tax
Continue temporary tax hikes, including on vehicle license fees, a 1 cent sales tax increase, 0.25% income tax surcharge and dependent credit cut.
Alcohol tax
Raise taxes on alcohol sold by the drink. Proposals range from a nickel a drink to 30 cents per beverage, which would raise an estimated $4.3 billion.
Vehicle license fee
Make proposed tax
Raise vehicle license fee to 2% of a car's value, where it stood before Schwarzenegger took office.
Cigarette tax
Raise state taxes on cigarettes, now almost 90 cents per pack, by as much as $4 per pack. The maximum raised, $2.6 billion, takes into account projected changes in how much people would smoke.
Rate hike for high-earners
Make proposed tax
California currently taxes its highest earners at 9.3%. Raise it to 10% for those earning more than $300,000 and 11% for those earning more than $600,000.
Crude oil tax
Make proposed tax
Impose a new 9.9% oil severance tax on crude pumped from California land.
Business tax break
Make proposed tax
Repeal a tax break that allows companies to determine their business tax formula annually.
Social Security income tax
Taxing half of Social Security income would generate $500 million.
Speeding cameras
Make proposed tax
Install automated speeding cameras on 500 existing red light cameras across the state.
Step Four: See the breakdown of your choices and share your proposal
FOR THE RECORD: The original version of the Budget Balancer incorrectly said that cutting spending by $1,000 per pupil would reduce the deficit by $3.7 billion. The correct figure is $5.9 billion. The options have since changed.
Produced by: Anthony Pesce | Reporting: Shane Goldmacher, Evan Halper and Maloy Moore
Credits: Robert Browning, Itzu Chen, Megan Garvey, Thomas Suh Lauder, David Lauter and Ken Schwencke
Remaining Deficit:
