Surging revenues highlight governor's budget (Schwarzenegger, CA)
California's tax revenues are surging ahead of expectations, giving an election-year jolt to the state budget and providing more money for public schools, health services and higher education, according to a budget proposed Tuesday by Gov. Arnold Schwarzenegger. The governor, a Republican, revealed a $125.6 billion spending plan for the 2006-2007 fiscal year that does not raise taxes while providing a 7 percent boost in spending over this fiscal year.
The plan also marks the first time in several years that the state projects enough tax revenue to cover spending without significant borrowing, a reversal from budget deficits that reached into the billions before Schwarzenegger took office.
Among its highlights, the governor's spending plan:
Does not raise taxes.
Reduces the state's structural deficit by more than two-thirds, from $16.5 billion when Schwarzenegger took office in 2003 to $4.7 billion in the next fiscal year.
Surging revenues highlight governor's budget (Schwarzenegger, CA)You're right, I didn't include it--because Revenues AREN'T surging! I'm waiting for the media to acknowledge that the revenue increases are largely the result of Arnold introducing a tax amnesty program thereby receiving (temporary) tax collections, the majority of which will have to be paid back in future years. This is clearly exposed in the Legislative Analyst's Report published yesterday, the same Analyst who says Arnold's budget is moving in the wrong direction. (It is also also discussed in the threads on the recommended reading list I gave you).
And in true liberal (and Gray Davis) fashion, he is proposing to use those dollars to fund recurring state social programs, including 1/2 Billion for his Prop 49 After-school-programs (Government Babysitting).
Also, whatever you do, don't suggest that FairOpinon read the LAO report. She might melt. We'd only be left with her ruby slippers.
"F"O: Maria Schriver Schwarzenegger, is that you???? And how is Uncle Teddy????