Posted on 01/07/2007 11:44:34 AM PST by NormsRevenge
Sacramento -- When he presents his proposed budget next week, Gov. Arnold Schwarzenegger will have to maneuver around a sluggish economy and a series of his own spending promises in overcoming a $5.5 billion deficit.
The Republican governor has repeatedly said he will not raise taxes but is also planning a major initiative in health care and faces a growing prison crisis that will likely cost the state money.
Unlike previous years, the state's housing market is not likely to provide a fiscal windfall that will alleviate the need to make major cuts to balance the budget or pay for new programs.
"A strong housing market brought the state holiday gifts for four years now, but that time is up," said Ed Leamer, director of the UCLA Anderson Forecast. "That was the time to get the budget balanced. Now everything is going to be more difficult because the problem of the lingering deficit has not been resolved."
Schwarzenegger does have options to erase the deficit without making huge cuts. The state has $3.2 billion in surplus from the current budget year that can be carried forward. The state could also choose to delay some of the payments of its deficit recovery bonds, which voters approved in 2004.
Neither move, however, would help the state with its long-term deficit as it continues to spend more than it takes in. ...
The slowdown in the housing market leads to a sluggish construction industry and a decline in property taxes. Sales tax revenue can also decrease because people are buying fewer products, either for their new houses or for making improvements on their current homes, said Ryan Ratcliff, an economist with the UCLA group.
"It's hard to see any of that being big sources of money in 2007," he said.
(Excerpt) Read more at sfgate.com ...
"A strong housing market brought the state holiday gifts for four years now, but that time is up," said Ed Leamer, director of the UCLA Anderson Forecast. "That was the time to get the budget balanced. Now everything is going to be more difficult because the problem of the lingering deficit has not been resolved."
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The Golden Goo$e had a little assist from the GooGle Goo$e as well but you can't count on it again.
"I prom-is, ass govana I will get ow fiskl hows baack in oda."
Well he almost made it. The odor never left.
Now we're in the perfect position to take on nationalized health care at the state level.
Too bad this guy isn't eligable to run for President. He's a shining example of what it takes to be a Republican these days.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Good luck to you in your new stomping ground.
Dang! When did that happen?
You're even flyin' the Colorado flag now!
Good luck to you!
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Well, now you're gonna hafta change you're name, cause all they mine in Colorectal is saltpeter!!! (snort!)
lol.. I was gonna ask about a name change being in order too.
I may have to change to GoldarnStateGOP in honor of ya, goldstategop. ;-)
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