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California Budget Deficit Rising: Wasteful Spending, Minimum Wage Hike to Blame
Cybercast News Service ^ | January 20, 2017 | 11:51 AM EST | Hans Bader

Posted on 01/21/2017 9:17:57 PM PST by Olog-hai

California’s projected budget deficit is rising. “Gov. Jerry Brown’s administration miscalculated costs for the state Medi-Cal program by $1.9 billion last year, an oversight that contributed to Brown’s projection of a deficit in the upcoming budget, officials acknowledged this week,” the Associated Press reported today.

California’s projected deficits could have been avoided by curtailing wasteful spending. As the Reason Foundation notes, California spends more money to get worse roads than most states. […]

California’s legislative analyst projected last year that the recent increase in the state’s minimum wage to $15 an hour will cost taxpayers $3.6 billion more a year in increased government worker pay. This is partly because already well-paid government workers sometimes have their pay pegged to a multiple of the minimum wage. …

(Excerpt) Read more at cnsnews.com ...


TOPICS: Government; US: California
KEYWORDS: budgetdeficit; governormoonbeam; lofan; minimumwage

1 posted on 01/21/2017 9:17:57 PM PST by Olog-hai
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To: Olog-hai

California needs another RONALD REAGAN.


2 posted on 01/21/2017 9:23:55 PM PST by cloudmountain
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To: Olog-hai

Not to mention the bullet train fiasco.

The Los Angeles Times reports that just the first leg of this massive government boondoggle — 118 miles from Merced to Shafter in the central part of the state — could come in $3.6 billion over budget while taking seven years longer to build than promised.


3 posted on 01/21/2017 9:32:24 PM PST by waus
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To: Olog-hai

No bailouts. Let them handle their own problems.


4 posted on 01/21/2017 9:33:24 PM PST by Joe Bfstplk (A Irredeemable Deplorable)
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To: Olog-hai

I feel like making a donation to “California Secession 2016.”


5 posted on 01/21/2017 9:45:03 PM PST by Beave Meister (Leave the gun. Take the cannoli....)
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To: waus

Yes, that train will take you everywhere you don’t need to or want to go....what a waste of money.


6 posted on 01/21/2017 9:47:38 PM PST by Beave Meister (Leave the gun. Take the cannoli....)
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To: Beave Meister

No. Shafter is a huge resort destination for most Californians. After they visit Merced. /s

Audit reports last year, for example, found that the rail authority lacks consistent management processes, takes on unnecessary contract risks, does not have orderly records and is short on clearly defined responsibility for its top officials.


7 posted on 01/21/2017 9:54:22 PM PST by waus
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To: Olog-hai
This is partly because already well-paid government workers sometimes have their pay pegged to a multiple of the minimum wage.

and there it is...

8 posted on 01/21/2017 10:02:55 PM PST by Chode (may the RATS all die of dehydration from crying)
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To: waus

The only people who will use it will be the migrant workers going back and fourth. I’m sure they’ll get a huge discount on fares....Who else is going to ride that train?


9 posted on 01/21/2017 10:07:42 PM PST by Beave Meister (Leave the gun. Take the cannoli....)
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To: Chode

I vote for California Bankruptcy so they can unpeg themselves from union contracts and take control of their government again.


10 posted on 01/21/2017 10:14:23 PM PST by Tai_Chung
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To: Tai_Chung
they gotta do something
11 posted on 01/21/2017 10:23:21 PM PST by Chode (may the RATS all die of dehydration from crying)
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To: cloudmountain

Ronald Reagan was elected as governor in 1966 and re-elected in 1970.

He would never get elected by the present day loony electorate in the former golden state.


12 posted on 01/21/2017 10:51:30 PM PST by july4thfreedomfoundation (Our 8 Year Nightmare Has Ended!)
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To: Chode

And I think the state pension fund is in trouble too. The state is going to have a total economic collapse. Not a question of if but when. Democrats hold every elected state office from governor on down. They broke the state’s economy. They own it. Isn’t that right House minority leader Nancy Pelosi of San Francisco? They have no one to blame but themselves.


13 posted on 01/21/2017 11:05:44 PM PST by dowcaet
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To: waus

Picky, picky, picky.... /s


14 posted on 01/21/2017 11:10:20 PM PST by Bob (Now, Republicans get to sing "Happy Days Are Here Again". Enjoy the suck, rats.)
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To: Olog-hai

The problem with this article is the minimum wage in CA isn’t $15 yet and won’t be until 2020. Some cities are higher but the statewide minimum wage is $10.50.


15 posted on 01/21/2017 11:15:10 PM PST by CarolAnn
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To: CarolAnn

The cost projections are cited by CA’s own legislative analyst, and they related to how state workers’ wages and increases thereof are pegged to a multiple of minimum wage rises.


16 posted on 01/21/2017 11:19:28 PM PST by Olog-hai
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To: Olog-hai

Ok. I was reading where it said the States recent increase.....


17 posted on 01/21/2017 11:24:27 PM PST by CarolAnn
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To: Olog-hai

How do you miscalculate costs by $1.9 billion
You do not. You lie and hope no one caches you. The problem is that not enough politicians go to jail for things like this.


18 posted on 01/22/2017 1:45:22 AM PST by minnesota_bound
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To: Olog-hai

California is an example of what happens to paradise when a liberal is in charge....only they can turn it into hell!!!


19 posted on 01/22/2017 4:24:36 AM PST by ontap
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To: Olog-hai

Paging NYS...


20 posted on 01/22/2017 4:25:25 AM PST by mewzilla (I'll vote for the first guy who promises to mail in his SOTU addresses.)
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