Category Archives: Cost of living in California

Explore the Cost of living in California. How much does it cost to live in California when compared to other states in the US?

Will California Tax Tweaks Raise Cost of living?

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The cost of living in every state is on the rise. California is no exception. There are many proposed taxes hikes that state leaders are trying to sneak on the 2012 ballots.

Taxing Crude Oil and the Cost to Californians

Cost of living in CaliforniaThe proposal is to levy a 9.9% extraction fee on each barrel of oil. City leaders are saying the oil taxes could bring in up to $3.5 billion for schools, while somehow preventing oil companies from raising the price of gasoline.

The opposition states that this would result in reduced in-state production, leading to an estimated loss of 10,000 jobs. And that the price of oil could increase by $1.3 billion a year which would ultimately lead to higher gas prices for people of California.

Governor Brown’s 7 Billion Dollar Tax Measure

California Governor Jerry Brown wants to raise taxes on the rich and raise sales tax. He is trying to push the measure on to next November’s ballot along with other tax measures.

Brown’s plan is to impose an extra 1% income tax on people making $250k a year, and 1.5% on those making $300k a year and 2% on individuals earning $500k a year. He also is pushing for a .5% sales tax hike much like Governor Chris Gregoire is attempting in Washington state. The California governor states the extra cost in taxes would last through 2016.

A projected $13 billion budget deficit has prompted this decision to raise cost of living in California The Brown Tax plan promises to reduce that deficit. Although a state budget watchdog agency reported much of the revenue promised wouldn’t materialize.

The measure would require a two-thirds super-majority vote and the Democrats control the legislature. Even so they are short votes , so without support from a few Republicans the initiative will be blocked. Earlier this year Republicans blocked a similar attempt to raise taxes.

Orange County Schools Could lose Property Tax Earmarks

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Orange County officials stated that because of budget shortfalls they may divert property tax revenues away from public schools in January and May of next year. As a result hundreds maybe joining the unemployment line. The extra funds would be used to maintain correctional facilities and pay down the counties debts.

Are Politicians Breaking the Law?

California Cost of livingIt is interesting to note that the state is investigating the legality of Orange Counties desire to divert over 73 million dollars from public schools. A spokesperson for the state finance department stated that if Orange County follows through on its vow to redirect the funds, the state might take legal action against the county.

County Auditor David Sundstrom said he would not redirect the funds if he thought it was illegal and is trying to work with the state to find a resolution.

Citizens Willing to Pay more Tax for better education

Cost of living in CaliforniaAccording to a recent poll Californian’s are willing to raise their cost of living in order to fund better education. The 64% of Californian’s are advocating for a public school system that has endured three years of deep budget cuts. The general consensus, California’s public schools are in horrible shape. They are absolutely right for 66% of students in California have a GPA of 2.0 or below. Out of those polled many cited budget cuts ,wasteful spending and bureaucratic as the cause. And they’d be right!!

Does Education Need the Private Sector?

This is a future article because I feel very strongly about this subject. Should it be the government’s job to provide education to its citizens or simply regulate it? Wouldn’t education be better off in the private sector?

I know most companies have to answer to investors, make a profit and provide a quality product to be competitive. The Government has to do none of those things.

How would public schools do in a fair non-monopolized market? Think of the product our government is providing our children and then think how much money they are wasting to do so. Private and Charter schools are more regulated by the government, waste less, and could be funded with a lot less if the right strategy was employed.

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California Government Retirees may not Lose Health care Benefits

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The California Supreme Court ruled Monday that health benefits for government retirees in Orange county may not be eliminated. That implied contracts covering retiree healthcare benefits will be honored.

Unfortunately this is not the only instance of our government trying to rob our honored citizens of their medical benefits. Other cities, counties, and states in our great nation are regrettably following suit. This article focuses on the Sacramento County case.

The state of California’s attempt to eliminate Health care benefits in Sacramento County

In 2010 the Board of Supervisors in Sacramento County reduced the health care subsidy by $100 per month. This cut maximum benefits down from $244 to $144 a month. This year Sac County put further strain on the cost of living by setting the maximum to $80.64 per month. I would like to hear from our honored readers how much they pay on average for health care expenses. Please post your comments they are as always greatly anticipated.

The Counties Argument

Starting in 2003 the health care policies state that subsidies are not intrinsic. Meaning that there is no explicit contract in Sacramento County to provide county retirees any health care benefits. This is in stark contrast to the Orange County ruling which is over premiums not subsidies. According to the county the policy states that the retiree’s health care program is not a contract thus doesn’t provide any vested entitlement to benefits hence void of regulation.

Guess we should of read the fine print.
Where is the Governator when we need him. Is this astalavista healthcare benefits?

Cost of living California

Supreme Court Ruling

Justice Marvin R. Baxter wrote
“Under California law, a vested right to health benefits for retired county employees can be implied under certain circumstances from a county ordinance or resolution,”

It is the hope of all California government retirees that this ruling will quell the counties attempts to reduce health care benefits and make sure they last a lifetime. Judges are government employees too and I’m sure this will aid in the association’s case. Times being as difficult as they are does not excuse this injustice.

The Affect the ruling has on California Retiree’s Cost of living

Cost of living California
What is at stake here is obvious. It is hard enough for our seniors already. With the rising cost of living in California, most evident prescription drugs it is difficult if not impossible for our seniors to make ends meet. Why does our government continue to pick on them?

The Future of this case

Arguments to dismiss the suit against Sacramento County are scheduled for Tuesday. The case will go back to the U.S. 9th Circuit Court of Appeals. Where the honorable Judge Kimberly J. Mueller hear the case.

California Housing Market News

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Pending Homes Sales

Cost of living in California
In October California’s housing market showed positive growth for the sixth consecutive month.The California Association of Realtors showed that compared to a year ago open escrows increased 11%. This is a 2.9% increase when compared to September.

Closed Real Estate Sales

Sales in 2004, 2005 and 2006 averaged out to seven million. This year 5 million homes where sold which topped last year by 8.5 percent.

Future Projections for California’s housing market

Cost of living in California
The National Association of Realtors predicted a four to five percent increase in sales for 2012. Although the projected increase in home sales is an encouraging sign the increase in foreclosures is concerning.

After a year long slowdown banks are cracking down on troubled borrowers sending almost 78,000 properties into the foreclosure process this October. This is 7% higher than September.
It is evident that the housing market in California is still hovering at the bottom.

Full recovery in California’s housing market can not be achieved until we get through these foreclosures. This can not be achieved until the job market improves and the cost of living lowers. This directly affects the housing market because homeowners are very concerned about another drop in their debt to income ratio. Market stability will offer reassurance that will promote recovery by giving consumers enough confidence to raise their living expenses.

Lawmakers encouraging growth in California’s real estate market

On Friday Obama signed a bill that will reinstate FHA backed loan limits to $729,750. The limited was hastily reduced to $625,500 in October. This swift action was inspired by a sharp decrease in home sales nationally. Real Estate Sales in Orange and Los Angeles counties between $625,500 and $729,750 dropped last month. That was a 71% reduction when compared to September and 71.5% when compared to sales in October of last year.

It is clear that indecision, scrutiny of Fannie Mae and Freddy Mac, and the fact that the FHA might need a tax payer bail out will quell future growth.

University of California to pay medical costs for protestors

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The University of California is paying medical expenses to students pepper sprayed during the Occupy Davis protest last Friday. Eleven of the students pepper sprayed were treated for coughing, shortness of breath, and burning eyes.

Students of Davis have filed civil law suits against the university. The calling of Linda Katehi’s resignation motivated the chancellor to release a statement condemning the incident and launch a full investigation. An advisory panel has been formed to investigate the conduct of the officers which was captured on video and went viral. The chancellor put the officers involved on administrative leave. Oh the power of the internet.

Charges for unlawful assembly against the 10 students arrested on Friday were promptly dropped.
If whomever reading this would like to research and post the definition of an improper assembly it would be appreciated because I’m confident that this protest didn’t meet any of the criteria.

Campus police pepper sprayed a group of protesters whom were showing no signs of aggressive behavior.
In fact the video showed a group of protestors sitting down in a row being pepper sprayed repetitively.

Regardless of the validity of Occupies message they still have the right to peacefully protest. This is still America.

To Katehi’s credit she did host a town hall meeting with more than 1,000 student to discuss the incident. A great step in the right direction.

Meeting the Occupy movement with violence will only inspire more people to join. Whether this is good or bad will be up to history to decide. It is every red blooded American’s right to exercise their freedom of speech. It is our government job to represent the will of the people. In the end its the people who hold the power. The Occupy movement so far has been met with police brutality and negative press. Given all the wisdom of our elected officials you would hope that a more constructive approach is on the horizon. If not I fear the violence will escalate exponentially.

 

Californians get a break at the Pump

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Californians get a break at the Pump

Folks in California have something to shout about as gas prices fell 5.4c per gallon this week. California cost of living has been on the rise so this news offers a glimmer of hope. Gas prices are at $3.74 per gallon as opposed to $3.35 per gallon, the national average. Don’t get too excited though prices have to drop a lot more to fall below recent historic prices for November. In recent history, this week in 2007 recorded the lowest prices at $3.39 per gallon.

As of late diesel production is being favored over gasoline and refiners will boost production of distillate at the cost of gasoline production. So don’t expect this downward trend to last. Crude oil is currently at $97 a barrel.

Other Factors Impacting Crude Oil Prices

America’s S&P credit rating drop from AAA to AA+ last August. In the aftermath of this downgrade crude oil fell nearly twenty percent. One of the factors involved commodities traders selling of their stocks. This stunted the increase of crude oil prices and is one of the main reasons they remain under $100 per barrel this month.

Gas price Manipulation

Everyone wants to talk about gas price manipulation. So come on out conspiracy theorists because I’m throwing in an added bonus for you. Don’t know if you ever caught the documentary Gashole but as a side note watch it. It will feed your every conspiracy desire. Awesome documentary!!

In June of this year crude prices dropped roughly $22 per barrel lower then the $114 high of the Quarter. Almost immediately after, they shot up to $98. A lot of folks were screaming conspiracy.

How can oil prices be in such flux? The Federal Trade Commission (FTC) is asking the same questions and has started an investigation into the oil and gas markets. Yippee! Maybe they will make big oil executives swear in this time. (If you have seen Gashole you will know what I’m talking about)

The media as always being the tool that it is, claims fluctuations in oil prices can be attributed to the Japanese earthquake and tsunami, and as usually events in the Middle East.

What do you think! Follow me on Twitter @followbillbaker

Will Cap & Trade raise energy cost in California

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Cost of living in California

What is California’s Cap & Trade program?


The California Air Resources Board and industry stakeholders worked together to design the California cap and trade program.

The Cap and Trade program is a strategy to limit California’s GHG emissions. Under this program an overall limit on emissions will be capped in certain sectors. Those sectors under the cap will be able to trade allowances to emit GHG. The Cap and Trade program will monitor the trading of these permits. The overall goal is to reduce pollution without hurting businesses. The program is set to launch in 2012.

The Costs

Many critics of the Cap & Trade program state that this will raise energy costs for consumers. A few people suggest that this will create favoritism towards some businesses while alienate others depending on how much they contribute to political campaigns. Will is conflict of interest end up weakening competition hence raising energy costs?

The simple fact is that this will not lower the cost of doing business. Since when does any addition expense accomplish that. It would be counter intuitive to thing so. And staying in this line of thinking it would be equally so, to imagine that is will not raise the cost of living in California.

Supporters argue that companies will work hard to reduce their carbon foot print to limit the need for allowances. This gives them the ability to invest allowance sales into more energy efficient products that will in turn reduce consumer bills. Do we know of a company that passes a surplus in profit margins to its customers?

The Bigger Question

Will it actually work?

In the past caps were set so high that companies had no problem reaching them. This program was designed to address that issue. In the six-year-old European Union market carbon allowances traded at $21 per metric ton of carbon dioxide. This is $3 more than the current price on emissions in California.

This program will help put California on the path to meet its goal of reducing GHG emissions to 1990 levels by the year 2020, and ultimately achieving an 80% reduction from 1990 levels by 2050.

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Cost of living in California News 11-8

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Cost of living in California

The Cost of living in California is declining. This is according to the U.S Census Bureau.
Over 49 million Americans are forced to live in poverty. On the west coast alone 2.8 million have sunk beneath the poverty line. California is a large contributor to this total. California’s poverty rate has gone up 4% this quarter. This is due to rising unemployment and a increased cost of living. The national poverty rate is now at %16. California sits above twenty percent.

Cost of living in California Increases

In California jobs that do exist are low paying. Unemployment benefits are not equal to lost wages. The rising cost of medical care is putting a strain on Californians. This is not taking into consideration California’s high housing costs.

Housing Costs

Cost of living in California

Many citizens are finding it nearly impossible to afford housing. In urban areas a one bedroom apartment can cost $800. Folks in California are finding it hard to get by on meager unemployment checks.

Congressional hearings are underway to address this issue. Bigger loan limits expired on Oct. 1st. Congress is proposing a measure that would allow Fannie Mae and Freddie Mac to insure single family mortgages up to $729,750. The current ceiling is $625,500. This proposal is aimed where cost of living is high. Places such as California.

California’s Job Market

With the decline in job growth the cost of living in California has risen.
California has lost 306,000 job since 2007. Los Angeles County was hit the hardest losing 113,000 jobs.

Medical Care

With the blessing of the Obama administration California is cutting over a hundred million dollars from Medi-Cal. Expects state that with less funding Doctors may refuse to see patients covered under Medi-cal. Overall the reduced funding will save the state $623 million. Currently California spends $14 billion on Medi-care.

This will be a huge blow to Californians already struggling with high medical expenses. Especially so for seniors. It is not clear but a factor could be the presidents push for Obama-care.