California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Pessimism persists in the Golden State, but not as high as previously reported
according to a recent statewide poll by the nonpartisan Public Policy Institute
of California. The report identifies that Californians are more pessimistic about
the state's direction than they have been all year, but are somewhat less pessimistic
than they were in 2010.  However, 61 percent say California is headed in the wrong
direction while 29 percent saying it's headed in the right direction. Jobs and the
economy top the list of the most important issues Californians face, as it has since
 March 2008.  Of interest, (61 percent) say they are following news about the state's
budget situation very or fairly closely.

Meanwhile, State Controller John Chiang announced that he will permanently withhold
Legislators’ salary and per diem beginning on June 16 if they fail to approve a
balanced budget.

Proposition 25, titled the “On-Time Budget Act of 2010,” was approved by voters
Nov. 2, 2010. The initiative lowered the vote requirement for passing a budget from
two-thirds to a simple majority. It also required members of the Legislature to forfeit
their salary and reimbursement for travel and living expenses incurred from June 16
until “the day that the budget bill is presented to the Governor.” Payments forfeited
will not be paid retroactively. 



"Presenting the Governor with a balanced budget by the Constitutional deadline is the
most important, if not most difficult, job of the California Legislature,” says Mr.
Chiang. “In passing Proposition 25 last November, voters clearly stated they expect
their representatives to make the difficult decisions needed to resolve any budget
shortfalls by the mandatory deadline, or be penalized. I will enforce the voters’
demand.”



I am Tim Johnson and this has been the California Business Minute.