Posted on 11/15/2007 10:06:47 AM PST by goldstategop
There is n-o m-o-n-e-y.
California's state government is i-n d-e-b-t and the hole is getting deeper.
We should change the name of this state to "Denial."
Unless the politicians and voters are willing to raise taxes, forget all these grandiose new government programs Sacramento has been yakking about concerning healthcare and education.
In fact, forget them anyway for now. Tax increases will be needed just to pay for what the governor, the Legislature and the voters already have saddled on the state.
Nonpartisan Legislative Analyst Elizabeth G. Hill confirmed Wednesday what previously had been leaked by the Schwarzenegger administration: The red ink is spreading fast.
Balancing the state budget for the next fiscal year -- honestly balancing it -- will require nearly $10 billion in tax hikes and/or spending cuts, Hill reported in her annual California Fiscal Outlook. Put simply, she projects a 4.6% rise in revenue but a 7% increase in general fund expenditures of $111 billion.
(Excerpt) Read more at latimes.com ...
"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
As usual, the writer only contemplates tax hikes (as a remedy). Spending cuts? What are those?
If these people were running a private corporation, they’d most likely end up in prison.
This is good news.
It confirms that Liberals, liberal voters, and Rinos like Arnold will drive an economy into the dirt.
I love it and they love it, they get what they wanted.
A win win!
http://pajamasmedia.com/xpress/billbradley/
** GRAY DAVIS WOWS CALIFORNIA PRESS WITH HUMOR, CALLS FOR STATE SPENDING LIMIT.
There is much more to say about this, but former Governor Gray Davis was a big hit at today’s luncheon of the Sacramento Press Club. “You’re not the same politician we used to chase around the Capitol,” one retired journalist told him. (The conventional press has been much diminished of late, and the press club is filled much more with PR folk and partisans than journalists.)
Davis, who bemoans the lack of seriousness in both the Republican and Democratic parties in dealing with a chronic budget problem, told attendees that he doesn’t know anyone in California who really wants to raise taxes. (In conversation, he notes that people always want to raise somebody else’s taxes, if at all.) So he called for a new state spending limit, which would put aside three to four percent of revenues a year except in times of trouble.
He repeatedly praised the man who replaced him as governor in the 2003 recall, Arnold Schwarzenegger, now a friend of his, for having “a big vision” and for “making California proud.” He fielded repeated questions about whether he will work again for former Governor Jerry Brown, now California’s attorney general. Davis, who was Brown’s very effective gubernatorial chief of staff for nearly seven years, noted that he is “retired.” Which is, of course, a relative term.
He praised Schwarzenegger for expanding on his own groundbreaking initiatives on climate change and renewable energy. He also called for a new approach to deal with California’s infrastructure, which still suffers from neglect despite the passage of the Big Bang Bonds infrastructure package devised in 2006 by Schwarzenegger and Democratic legislative leaders Don Perata and Fabian Nunez. This would involve public-private partnerships and the use of public pensions funds, as is done in Europe.
Obviously, there is more to say — and show — about all these things.
Well, the gringos will have to pull in their belts a little to pay the bills for the 2,000,000 illegals in Mexifornia in addition to their own bills.
The Democrat-voting illegals are needed to keep the Democrat trash in power. They aren’t going ANYWHERE...
Generously, they also included Nancy Pelosi among their choices of Best Leaders, even though she has achieved the lowest approval ratings for the US Congress in its history.
Guess who has not renewed the USNews subscription around here?
Have you considered cancelling immediately and asking for a pro-rated refund of past payments? Every little bit helps.
What is it with this European Bool Chit??? Europe was the "old country!" America is the "New World!" We came over on this side of the pond to get the hell away from the worn out ways of the "old country!"
All the "Mass Transit" and "Bullet Trains" and "Toll Roads" and insufferable Socialism with GovernMental EnvironMentalism is Old World Crappola and is foreign to the exceptional American traditions, science and culture!!!
The lack of attention to borders and massive muslim immigration, both legal and illegal and all the talk of a World GovernMental Order, etc., etc., is just repulsive to real red-blooded American's!!!
Oh! I must say, however, that we shouldn't stay mad at France for too long... Not with all the Chevrolets we're making and driving around in America!!! (President Sarkosy Rocks, by the way!!!)(even if he isn't French)
A few pearls:
• After the budget passed this summer, which Tom describes as "the most unbalanced budget in state history," Schwarzenegger touted the budget publicly as being "balanced, with the biggest reserve ever." Tom agreed with J&K's characterization that it was "total B.S."• There is currently an operating deficit of $14 billion. Tom thinks it is going to get worse because the Governor is still relying on much stronger revenue growth from last year despite evidence to the contrary.
• In January, at a meeting over dinner in Dick Ackerman's home, McClintock explained to Schwarzenegger that the state was on exactly the same fiscal trajectory that brought Gray Davis down. His response was "Well that is bad news. The people don't want to hear bad news, only good news. I don't want to hear pessimism; I want to hear optimism."
• Two years ago, renowned economist Arthur Laffer, one of Schwarzenegger's Economic Council of Advisors, told Schwarzenegger that he had, at best, 18 months to get spending under control. Schwarzenegger accused Laffer of being a pessimist and blew off his warnings.
• Tom estimates the deficit through the end of next fiscal year 2008-09 to be $18-$20 Billion
Since Arnold took office:
1) 20% increase in inflation/population
2) 29% increase in revenue
3) 33% increase in spending.• Gray Davis: 5 year cumulative deficit $4 Billion
• Schwarzenegger: 5 year cumulative deficit $15 Billion• Gray Davis era: debt service was $2 billion per yr
• Schwarzenegger: debt service now over $7 billion per yrNext up? Tom predicts what he called the "Washington Monument strategy." In response to Schwarzenegger's question ("what can you cut?"), departments will claim that the only thing that can be cut will be that which generates the loudest backlash (like the Federal Government claiming all they can do is close down the Washington Monument).
Tom predicts Schwarzenegger will go forward with his attempt to sell (30-40 year lease) the state lottery to a consortium headed by Goldman Sachs. He estimates it would generate a front-end payment of $14 billion, a portion of which would be put in trust to go to schools (to generate the same amount it earns for schools now--$1 billion), with the remainder going to "paper over" the deficit and "allow him [Schwarzenegger] to get out of town." Goldman Sachs would then keep all revenue for the length of the lease. He described Schwarzenegger's logic as follows:
The lottery is underperforming ("never mind that the entire lottery commission are his [Schwarzenegger's] handpicked appointees"); they are incompetent to run the lottery; it is under-producing by about $1 billion per year. If we give it to GS for the next 40 years, they they will pay $14 billion and the state can cover the deficit.Tom said the point is: The schools are being shortchanged because it isn't making enough. We should be making $2 billion. Instead of managing it competently and giving $2 billion to the schools, Schwarzenegger's solution is that we're going to lock them into being shortchanged for the next 40 years, and Goldman Sachs gets to keep the difference.
Sounds like you paid attention. Take an extra five minutes on the playground at recess.
LOL!
There was so much good stuff in there, I couldn’t help sharing. ;-)
I know the Governor’s arrogance and ignorance shouldn’t be surprising anymore but the
statements about pessimism, and his blowing off Laffer, did astound me. What a dangerous idiot.
I always thought the state constitution forbid deficit budgets?
"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
It does. But there is nothing about how you anticipate revenues in drafting the budget, and there is nothing prohibiting "borrowing" funds from one state account to offset another expenditure.
So to create a "balanced" budget they make unrealistic revenue predictions and shuffle state money from here to there and come up with numbers that pencil out based on accounting practices, but fail in reality.
"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
works FoR me . it "IS" what it "IS" .. Thanks!
“...as is done in Europe.”
What is it with this European Bool Chit??? Europe was the “old country!” America is the “New World!” We came over on this side of the pond to get the hell away from the worn out ways of the “old country!”
—
looks like a “EUrail” job to me... we welcome foreigners.. we do really,, but when they come with an agenda to make us just like them.. Uhhh,, BUUUZZZZ.. worng answer.
If I wanted to live like a EUro I’d move to EUro
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