Skip to comments.California legislature facing $54.3 billion deficit chooses to increase spending
Posted on 06/20/2020 8:11:18 AM PDT by SeekAndFind
he California Legislature, facing a $54.3 billion budget deficit in the next fiscal year beginning July 1, has chosen to increase spending in expectation of a federal bailout.
The nonpartisan Legislative Analyst Office (LAO) on May 7 shocked the Californias Democrat leadership, that holds veto-proof control of state finances, that despite federal disaster funding of $26.625 billion from the Cares Act and a $10 billion in loan to pay for unemployment claims, the state faced an $85 billion deficit over the next 14 months.
As a result of the COVID-19 coronavirus lockdown, California has suffered a huge economic decline with unemployment rising to 15.5% and tax revenue plunging. The impact is so severe, the County of Los Angeles is forecasting sales tax collection for the current year ending on June 30 will decline by $2 billion, or 34 percent.
The states Department of Finance has been predicting a sharp economic recovery as the pandemic recedes. But with the June 17 reported surge of 4,165 new coronavirus cases, mostly in urban areas, Gov. Gavin Newsom issued a statewide executive order that will require face masks be worn in all public places.
According to the State Controllers cash report through May 30, California has suffered a $21 billion shortfall in tax receipts versus spending for the first 11 months of the current budget year. The state had already borrowed $15 billion to continue spending.
With Californias Constitution requiring the enactment of a balanced budget before the July 1 start of the new fiscal year, Gov. Newsom proposed a 10% across the board slash in program spending and all state worker salaries to the state legislature.
Despite the mushrooming financial crisis, the legislature just passed a budget that cuts spending by $402 million for universities, but then raises state spending by $400 million
(Excerpt) Read more at americanthinker.com ...
The Federal government will have to provide more funding to states if Trump is to have any chance of re-election.
You really think people in Utah need to send their money to millions of illegal aliens in California?
RE: The Federal government will have to provide more funding to states if Trump is to have any chance of re-election.
TRANSLATION: States can continue their profligate ways and as long as there are Federal elections ( which comes every 2 years ), they can continue to hold any party in power hostage by saying — you want to be re-elected?, give us the money.
If the Congress and President trump provide funding to those states (Big Blue States/ i.e. NY, CA Ill) that bails them out from all their horrible management for years, then he and the congress should all be thrown out of office.
He'd do much better running on "why should the rest of the country bail out those states and cities that have behaved irresponsibly", because that is more likely to appeal to voters he might actually have a chance of attracting.
Fortunately, they have all those Hollywood millionaires to tax.
Yup. This was part of the plan: burn the sh*t down, promote suffering and blame Trump. The left are evil f-ing bastards.
Gotta pay those six figure pensions.
Public pensions and bennies. And Medicaid.
if they say 54 billion you can count on it being double!
You don’t think Texas, Pennsylvania, Ohio, Michigain, Wisconsin and Florida are having fiscal problems?
>>>The Federal government will have to provide more funding to states if Trump is to have any chance of re-election<<<
Buy this Magazine or we’ll shoot this Dog.
I'm not keen on my federal tax dollars ending up financing Democrat candidates, which is exactly what would happen if you start bailing out states and cities.
Here is their logic: the bigger the deficit the bigger the Federal bailout.
Spendthrifts with other People’s Money ...