CA: The bad-news budget

OC Register ^ | 7/25/05 | Esmael Adibi

[NormsRevenge]

Legislators and the governor celebrated the passage of the 2005-06 state budget that some call a victory for taxpayers - no new taxes, no new borrowing, and the largest single annual increase for the education budget. It is also argued by some that this budget is moving the state's finances towards structural balance.

Such wishful thinking! This budget not only ignores the structural deficit, but it unfortunately paves the way for future tax increases that will become necessary to finance future spending.

Let's begin with the budget's proposed spending plan. As shown in the accompanying chart the enacted budget contains $90 billion of general fund expenditures by various state agencies. This is an increase of about $8 billion from an estimated expenditure level of $81.7 in the 2004-05 fiscal year - an increase of 10.2 percent. Ironically, the adopted spending plan of $90 billion is $12.4 billion higher than former Gov. Gray Davis' 2003-04 budget - an increase of 16 percent over two years.

Of course, there are some one-time expenditures in this budget that will not be incurred in subsequent years. These include the repayment of $1.2 billion of Vehicle License Fee Offset programs that local governments lost between July and October of 2003. But even after adjusting for all one-time spending items, the enacted expenditure plan shows a substantial increase compared to the previous fiscal year. In fact, since the 1997-98 fiscal year, total general fund expenditure has increased at an annual average compounded rate of 6.9 percent - an increase of about 70 percent over eight years.

This rate of spending increase is sharply higher than the 40 percent combined growth rate in inflation and population in the state over the same period.

--snip--

[NormsRevenge]

$pend $pend $pend...

$pend $acramento $pend

$ee $acramento $pend

and the sequel

Tax $pend Tax $pend Tax $pend

[edcoil]

The register support it when passed and now figured out what we all knew - this budget is terrible.

Tom McClintok must have finally gotten through the editorial staff at the register.

[EagleUSA]

Drunk on our tax money -- tax, tax, tax, spend, spend, spend. LIBERAL CALIFORNIA.

Yes, we must pay for those illegal Mexicans -- very important -- $10 BILLION per year of stolen tax payer dollars which could balance our budget...AND REDUCE TAXES.

[Zacs Mom]

[NormsRevenge]

The Board of SF Stupidvisors will get ya for that one! LOLOL

[EagleUSA]

Well maybe there is an omen in the picture of that giant wave. This state needs a GIANT ENEMA to clean out the leftist infestation that is destroying it.

[calcowgirl]

Arnold has achieved a budget that Gray Davis could have only dreamed of.

With a dem in office, there is no way the Republican legislature would have allowed the outrageous spending and borrowing Arnold has endorsed.

Thanks Arnold. /s

[jetson]

Mexifornia is taking good care of its illegals. Taxes and illegals are UP and business futures and road care are DOWN.

[Old Seadog]

Thank goodness it is Frisco and not L.A. I'll go along with that.

[AmericanChef]

-no new taxes, no new borrowing, and the largest single annual increase for the education budget.-

Everyone ("everyone" being a relative term, of course) biting the bullet except education? Typical - problem IS, education's budget is HUGH! To get the largest increase ever is HUGH!

[kellynla]

Remember my McClintock 2003 campaign slogan?

"Vote 4 McClintock or Pay$ the Con$equence$"

I won't say "I told you so."

[Zacs Mom]

a high colonic for the entire state ~ rotfl....I'd hate to be around for that procedure

[Zacs Mom]

Yeah, I guess maybe I should have put in an 'apology' to any FReepers in the bay area

[Zacs Mom]

The Board of SF Stupidvisors would have trouble trying to decide if that image was real or not! lol

[NormsRevenge]

Arnold has achieved a budget that Gray Davis could have only dreamed of.

With a dem in office, there is no way the Republican legislature would have allowed the outrageous spending and borrowing Arnold has endorsed.

---

LOL.. The Rs sure rolled on this one, but don;t they always, like on redistricting in 2000.

Funny how things work out, sometimes,, or myabe not. ;-)

[ElkGroveDan]

With a dem in office, there is no way the Republican legislature would have allowed the outrageous spending and borrowing Arnold has endorsed.

Yes indeed. The same was true with Pete Wilson and his record-breaking 1991 tax increase. RINOs can accomplish things that Democrats never could get away with.

But of course we told everyone that and they ranted something about us wanting Bustamante yada yada yada.

[goldstategop]

Excuse me, but we don't have a Republican Legislature! I'm sure you meant to say Republicans in the Legislature. Anyway, if you've seen the Los Angeles Times this morning, a lot of conservatives see even California's toothless spending cap measure as a step in the right direction. We want one even as the politicians in Colorado seek to overturn theirs. Which leads one to the inevitable and inexorable conclusion: our politicians will never, left to their own devices, put our state government on a permanent diet. So we must do it for them.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[pogo101]

This reminds us why we must hope that the state supreme court reinstates Prop 77: redistricting reform so that the leftists only get the number of seats that they earn. (Currently, they get 54% of the votes statewide but, due to their gerrymandering of districts, end up with nearly 2/3 of the legislative seats.)

[FastCoyote]

["Vote 4 McClintock or Pay$ the Con$equence$"
I won't say "I told you so."]

Well, give yourself a half gloat. McClintock wouldn't have been able to carry the day last time around, he's a been moidered. But this time he might have a chance.