Californians May Want To Keep A Hand On Their Wallets, Purses -- Though It Won't Do Much Good -- Look For More Fees, Taxes -- January 9, 2015

Two stories.

Governor Brown releases $164.7-billion budget plan, calls for restraint:

“Now we have a carefully balanced budget, more precarious than I’d like, but it is balanced,’’ Brown said at a morning news conference at the Capitol. “It’s not a time for exuberant overkill on our budget spending.’’

Among the most notable aspects of the governor’s proposed budget was what was missing. The spending plan did not set aside funds for providing Medi-Cal for undocumented immigrants, a proposal under consideration in the California Legislature.

The proposal does not include an extra $100 million that the UC Regents say is necessary to avoid a tuition hike. Instead, Brown said his administration will work with university leaders to “reduce the costs structure.’’

Brown’s proposed budget also lacks funding for a major overhaul of state roadways and pressing other infrastructure needs in the state. Brown did say, however, that he will work with Democratic and Republican leaders in the Legislature to craft a plan to address those needs.

I guess you can balance any budget if you don't include all the "must-pays." I know when I was much younger I could balance my budget and still have money left over if I didn't pay the rent or make the car payment. LOL.

California's soaring healthcare costs bode ill for the budget.

California's budget, which bounced back after years of deficits, is now being squeezed by rising healthcare costs for the poor and for retired state workers.

The mountain of medical bills threatens to undermine Governor Jerry Brown's efforts to strengthen state finances — his central promise of the past four years.

Enrollment in the state's healthcare program for the poor, known as Medi-Cal, has exploded by 50% since President Obama's signature law took effect. Although the federal government picks up most of the tab, state costs have also been growing, and faster than expected.

Meanwhile, the annual bill for healthcare for public retirees — a benefit promised decades ago — has more than doubled in the last decade. Current and retired workers have accumulated $71.8 billion in healthcare benefits as of June last year, and the state has set aside almost nothing to cover the costs.

University of California officials say more funding is necessary to avoid a tuition increase that the governor opposes. State roads need tens of billions of dollars in overdue maintenance. And some of Brown's fellow Democrats are already pushing for more services for the poor.

This particular linked story goes into much more detail how onerous health care costs will be.

And so it goes. 

It will be interesting to see if we see articles on declining oil and gas revenue in California this year: Jerry Brown wants folks to use less, much less, gasoline, and with slump in oil prices, one would expect less CAPEX spending on the front end and less tax revenue on the back end.

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More On Apple

Yahoo!Finance is reporting:

If more apps equals more phones, Apple Inc. could be headed for a record-breaking quarter.

Many analysts already felt that the tech giant had sold a large number of iPhones. Apple reinforced that belief when it announced that customers spent nearly $500 million on apps and in-app purchases during the first week of January.

Better still, Apple set the all-time record for single day App Store sales on New Year's Day 2015.

"I think this is a wakeup call for all the analysts," Global Equities Research analyst Trip Chowdhry told Benzinga.

"More developers equals more applications, [which] equals more devices being sold. This is the only reason why Apple will be wickedly successful and why the competition will be a total failure because the competition is clueless about the winning equation."

From MarketWatch:

Apple Pay is gearing up for a big year in 2015, while PayPal may expand further into traditional retail banking.

Apple Pay, Apple Inc.’s  answer to avoiding a wallet full of plastic, will be the next big star on prime-time television.

Product placement is as prevalent as ever on television.

Apple Pay will likely appear in a major TV show in 2015, and will enjoy a spike of consumers and merchants accepting its usage as a result.

Apple is also likely to push the product overseas and “Europe seems the next stop."

A recent job posting for an internship to help oversee non-disclosure correspondences with partners in Europe is a “pretty strong indication” that Apple Pay Europe is coming soon.

Disclaimer: I post links to articles on Apple for several reasons. First, I grew up with Apple. I am officially Apple Fanboy #3. Or maybe unofficially. I don't invest in Apple directly; I have never owned shares of Apple in my name, but I can no longer say I never will. I love the technology; I love the story (coming from out of nowhere in 1984); I love the vision Steve Jobs had. 

Second, I need to follow some technology company to sort of keep up with technology. Right now I'm listening to my own personal "radio station" on iTunes through the "new" UE Boom. No advertising. No interruptions. Just non-stop, free music. 

Third, I'm doing this for a reader of the blog who happened to mention some time ago he/she owns shares in Apple.

And there was a fourth reason, but I forgot. Be that as it may, this is not an investment site. Do not make any investment, financial, or relationship decisions based on what you read here.