California Budget Basics
• • • • Why we care? What is the problem? Where are we in Negotiations? Lottery and Budget Stabilization-key pieces of a solution • Next steps
Why we care about the budget • Funds our contract • Legislators as managers • Vital services we provide at risk
The Problem
• Budget Deficit-years of avoiding revenue increases and service cuts • $20 billion deficit • Democrats need to cut services they have always supported • Republicans need to close loopholes and support revenue increases they have always protected • Governor wants a solution, hard to deliver his own party • Democrats have different plans between Senate and House—Assembly supports lottery, Senate has $11 billion in tax cuts
Negotiations
• Governor-$5 billion for three years from lottery, makes up rest with cuts, still has a hole, waiting for others to propose tax increases • Democrats just released a budget with $8 billion in revenue increases • Republicans in the minority party, looking for a deal, have suggested TABOR, long term tax cuts, and postponing environmental reform
Lottery Reform
Lottery Reform
• • • • The Governor takes a position long held by our lottery workers--insisting on Lottery reform Lottery revenue can be vastly increased. Reform of regulations is absolutely essential. The state must hire industry experts with a proven track record to realize potential gains.
Lottery Reform
California Lottery per capita revenues of just $98 are appallingly low compared to the national state average of $170. The top-performing states, Massachusetts and New York, bring in $699 and $352 per capita.
Lottery Reform
Sales could increase by 70% to 90% in ten years. • Lottery needs to change the payout structure to improve ticket sales. • Lottery needs to lift game theme and pari-mutuel restrictions that currently hamper marketing efforts. • Success depends on the sales, marketing, and gaming experience of its top managers.
Budget Stabilization
Budget Stabilization
• Budget volatility is an ongoing problem in California. • California needs to save in the good years so it can spend in the bad years. • Budget stabilization can help avoid service cuts in off years. • Budget Stabilization can make bargaining more predictable.
Budget Stabilization
• The Governor’s Budget Stabilization proposal does far more than stabilize the budget. • Gives the Governor the power to impose public service and wage cuts when there are revenue shortfalls. • Gives the Governor power to unilaterally suspend any laws that interfere with the cuts he wants to make.
Next Steps
• Increase pressure at the table and in the field • Field campaign on targeted legislators • Value Us campaign • Timing: July 17-August 15