Posted on 12/18/2001 2:17:04 AM PST by snopercod
Edited on 04/12/2004 5:32:03 PM PDT by Jim Robinson. [history]
California's looming, multibillion-dollar state budget crisis is really two interrelated but distinct income-outgo squeezes.
The first -- on which the media and most politicians focus -- is the budget itself. Plummeting state income tax revenues have driven the current budget into deficit and it could become a $12 billion-plus gap by mid-2003. Gov. Gray Davis has already called for spending reductions that he says would save $3 billion during the next 18 months, and the Capitol is buzzing with scenarios to cover the rest.
(Excerpt) Read more at sacbee.com ...
Davis's dogma just got run over by Wilson's karma.
It will be interesting to watch the bickering and back-stabbing that goes on as CA Legilators tackle the task of trimming billions off the state budget. It won't be pretty.
It will also be interesting to see if the GOP gubernatorial candidate, whoever it may be, can successfully damage Davis on this issue.
So much to watch--can Davis make lemonade out of these lemons? You can bet he won't do the right thing and get behind real belt-tightening--at least not in 2002. And if the belt-tightening is delayed beyond 2002, whoever is elected governor is going to need a corset to get the state's finances in order.
I will ask those on the Calpowercrisis Flag List I built.
If anyone wants off the list send me a note.
Send a note if you want on the list.
"But the bond sale is on indefinite hold because Public Utilities Commission President Loretta Lynch has refused to approve rates to pay for it, saying the pricey power supply contracts should be renegotiated."
"Even if the Legislature approves Davis' proposed spending reductions, the state is looking at a cash-flow deficit by June of as much as $2 billion -- unless the power bonds are floated, according to projections made by legislative number-crunchers. And if it becomes reality, it creates a dicey political scenario involving Davis and his archenemy, state Controller Kathleen Connell."
We conservatives all six of us who live in California love the irony of these two statements.
First of all Davis appointed Lynch, a life long demonicRat to chair the PUC. Now she is in his face!
Kathleen Connell, our controller is another life long demonicRat! She and Facist Davis are like watching a cat fight where both cats hate each other!
Click here: calpowercrisis
Revenue Anticipated Warrants (RAWS)A RAW is a reimbursement warrant (Revenue Anticipation Warrant) issued when there is expected to be insufficient monies in the General Fund to pay all current obligations of the State.
The key distinction between a RAN and a RAW is that to date RANs have never been issued across fiscal years.
Sounds like an IOU...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.