Posted on 02/01/2018 8:17:33 AM PST by rktman
California’s swelling budget reserves are approaching a point where the state by law can’t save any more money ‑ but don’t expect a tax rebate.
The state is quickly filling up its so-called rainy day fund, the budget stabilization account voters created in 2014 when they passed an initiative that forced lawmakers to save money in flush years. Gov. Jerry Brown’s budget proposal puts the state on pace to fill it with $13.5 billion by July 1, 2019, but the milestone could come even sooner.
By law, the fund can only hold 10 percent of the state’s projected general fund revenue as a hedge against the cuts that would come in a recession. Any additional revenue has to be spent on infrastructure.
(Excerpt) Read more at sacbee.com ...
In CA bike and walk paths are considered infrastructure.
Yes, and the chocolate ration has been increased from 10 ounces a month to four ounces a month.
How about the Oroville dam?(sp)
It’s not saved , they just haven’t figured out where to waste it ,yet
What a great opportunity for California to lower their state and local taxes to compensate for the reduction in the amount that their citizens can now deduct from federal taxes!
I am betting that they will just spend it and raise taxes instead.
Gee, that is a rather rosy picture they paint, isn’t it?
IF WE DISCOUNT ALL THE UNFUNDED PENSIONS, MONEY BEING SPENT ON ILLEGALS, AND USELESS TRAINS, WE SIMPLY HAVE SO MUCH MONEY WE CANNOT SAVE ANY MORE OF IT!
Government pension funds are all flush the cash? Everything rosy? Tax receipts from all the illegal aliens are flooding in?
Fantasy Land.
They’ll spend it on illegals and open borders. Nothing will ever go to the people of California.
Not that the California legislature would, but is there really no provision to allow them to reduce their net bond indebtedness with the tax surplus?
I kid you not, the county installed the final sidewalk after three previous attempts were jack-hammered out. It took them over two months to get the sidewalk's slope, storm drainage, and handicap outlet correct. Honestly, I saw little difference between the first sidewalk and the fourth and final sidewalk.
People wonder how California does it. How do they run a quasi-socialist nanny-state, with the greatest amount of poor people in the country, free health care for illegals, etc... and still have a big surplus?
The answer is because they are, for now, at the center of our Federal Reserve inspired, printed money debt bubble. Those $ Trillions of QE and massive debt, fed by near zero interest rates, are flowing through a few spots in Coastal California at the moment, mostly because of their legacy. How long can that last?
I hadn’t ventured in to Cali other than driving around Tahoe for decades. Last April we went to a fundraiser for a friend of mine in Ventura. I expected real nice highways and even secondary roads. WOW! Man was I shocked. Where’d they spend the road funds? We found a few stretches that were pretty nice but overall, not so much.
Was it County employees that did the install or contractors?
If it was contractors, I have to wonder if it was a scam to get more money out of the county.
On a cost plus contract more time on the job is more money.
Of course if it was county employees incompetence is believable as well.
Mot only that, but a gay/lesbian museum in California was considered infrastructure for financing purposes because it was housed in a former train station.
They won’t lower taxes.
2% is not an unreasonable grade to get to....the math is simple enough. ;)
By law, the fund can only hold 10 percent of the state’s projected general fund revenue as a hedge against the cuts that would come in a recession.
By Law? Since when did the democrats give cr*p about following the law? The only ones they want following the law are Conservatives, but only if that inconveniences, embarrasses or politically damages Conservatives and America.
Yeah - so awash in excess cash they want businesses to turn over billions of their tax cut proceeds....
This is a bald-faced lie! CA is broke!
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