During the last four years, the commission had cut the pay of 132 elected state officials by 23% in reaction to the recession and its damage to the budget, which resulted in furloughs for rank-and-file state workers.◼ REMEMBER: In April, California in the red by $127.2 billion, state auditors say - Jessica Chasmar/Washington Times (April 1, 2013)
But commissioners noted Wednesday that the economy has improved, the budget has been balanced with a $1 billion reserve fund, and Brown has offered a 4.5% pay raise phased in over two years to the largest state employee union.
“The governor has done a fantastic job of getting the tax initiative passed and the economic climate, while not completely restored, is on the right trajectory," said Commissioner Wilma Wallace. "And I believe that it is important to acknowledge that the Legislature has stepped up and that they deserve to have the 5% reinstated,"
A financial report issued by state auditors finds that the state of California is in the red by an unsustainable $127.2 billion.
The report says that the state’s negative status increased that year, largely because it spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion in fiscal year 2011-2012, the Sacramento Bee stated.
Gov. Jerry Brown has referred to the deficit and other budget gaps, mostly money owed to schools, as a “wall of debt” totaling more than $30 billion, the Sacramento Bee reported.
About half of the deficit came from the state issuing general obligation bonds and then giving the money to local governments and school districts for public works projects. The report listed California’s long-term obligations at $167.9 billion, nearly half of which ($79.9 billion) were in general obligation bonds, with another $30.8 billion in revenue bonds, the Sacramento Bee reported.
