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California Budget Process

Decent Essays

Introduction
The budget process is the most important aspect of fiscal decision making in Public Administration. Smith and Lynch (2004), argues that “Public budgeting is an activity that many people view from their own perspectives and, thus, they do not comprehend the full complexity of budgeting” (p. 34). Similar to the contextual definition of complexity in budgeting process, a classic example was the State of California’s budget impasse for the year 2010-2011. This essay examines and analyses the concerns that lead to passing a late budget in the State of California. It further goes into details regarding the reasons, resolutions, and consequences faced due to the budget Impasse.
As published in the Press Democrat by Judy Lin (2010), “Even …show more content…

As mentioned by Thompson (2010), in the Associated Press, “Lawmakers bridged a $19 billion shortfall, more than 20 percent of the $87.5 billion general fund spending plan”. This shows that the state was heading towards a financial crisis and more deficit creation. Moreover, Thompson (2010), in the Associated Press also points out that “It includes no tax or fee increases but uses a combination of cuts, funding shifts, delayed corporate tax breaks and assumptions about money the state hopes to receive”. The budget gave rise to other dependent costs such as delayed tax refunds. It was uncertain that the State will receive the required funds from the federal government to ensure that the important programs will function the way it used to be until the funds are received.
One of the important drawbacks of the budget was the cuts and delays in education funding. As published in the article “California lawmakers pass long-overdue budget” (2010), by Fox News “Under the deal, nearly $2 billion in payments to K-12 schools and California's community colleges would be delayed until the next fiscal year”. This was one of the consequences of the late deficit budget, which lawmakers agreed upon. Stopping payments to educational institutions was not seen as a positive feature of the budget. The delay in funding kept the educational programs on hold, which affected many educational

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