East Bay Real Estate

As part of the DBMG’s monthly breakfast, Guy Houston was invited to update the membership on the challenges facing our State government’s current budget issues.

 Our region’s representative to our State legislature, Guy Houston, was the guest speaker at the Diablo Black Men’s Group monthly breakfast in San Ramon today. Mr. Houston gave a brief update on the budget issues facing the State, and then took questions from the audience on a wide range of topics.

Mr. Houston started off with a general description of our Governor taking the position of cutting 10% off of all aspects of the State’s budget to balance the current fiscal crisis.  But, he did expand on what a 10% cut actually means. It actually means 10% off the budget after all of line items are given an inflation increase - meaning that the actual cuts are from 1% to 2%. ( Do not try this same accounting method at home when you trim your monthly budget by 10%. At your home it will actually mean a 10% cut.)

Mr. Houston’s two areas that he aims to protect are schools - K through 12, and infrastructure - our transportion structures. Another challenge with the budget is not only the lowering of revenue, but the increased debt service from the borrowing the State has done over the recent years. This has been in the form of bonds guaranteed by the State that require interest payments. He commented that our State’s income is based on a “boom or bust” annual planning method. Some years there is plenty of income, and some years there is a significant decline. Because of this State revenue cycle, he suggested that there be a broader sales tax implemented in order to smooth out these up and down years of revenue generally based on income taxes.

A solution to our totally inadequate funding of transportation infrastructure would be to set up public/private partnerships for toll roads similar to what Orange County has accomplished in Southern California. He gave the example that in 1970 11% of the State budget was allocated for transportation infrastructure.  Today it is .75% of the budget, which doesn’t even fund the road maintenance that is required. It was an informative presenation and a lively Q&A time.  Mr. Houston will be leaving State government after this term and be a candidate for the Contra Costa Board Of Supervisors.

The breakfast forum was with a group - the DBMG, that was formed in the mid-1990s as an organization of men who wanted to use their collective influence to enhance the lives of their members, families, and their community. Besides a keen focus on providing college scholarships for economically challenged Bay Area youth, they promote awareness of prostate cancer, diabetes, and heart disease to it’s members and the communities they serve.  Please contact me if you would like more information about how to support the Diablo Black Men’s Group and their community projects.  Until next time…

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