There was a big surplus at the beginning of FY2007, I think it was (it might have been 2006, but I don’t think so). Revenue was rising fast and they still had some of the money left from selling the “economic recovery” bonds. They squandered it all, and then some.
They have always had a “structural deficit”—spending more in every given year than revenues for the same period. As such, this outcome was inevitable. You can’t just keep spending more money than you have without it catching up with you. Arnie’s been doing the smoke-and-mirrors game, trying to drum up cash wherever he could to keep the house of cards alive. It has caught up with him.
We just need to build some more Indian Casinos and sell some more Lotto tickets....dont you worry!
Good it has caught up with him
With gas at $3.20 around here, that 7.sumpin’% tax has got to be bringing a lot of revenue to the general fund. They never say how much that is benefiting the state. Oh, that’s right, they just spend it.
Arnold runs Calif as if it was a country!