I am the deficit terminator.
Posted on 01/15/2008 11:26:58 AM PST by NormsRevenge
Sacramento -- Despite deep cuts in Gov. Arnold Schwarzenegger's proposal to bridge the state's $14.5 billion deficit, nearly half of his budget-balancing plan involves borrowing money, deferring debt payments and counting future tax revenue, according to a report released Monday by the nonpartisan legislative analyst's office.
The governor is proposing to issue $3.3 billion in bonds, delay a scheduled early payment on debt worth $1.5 billion and shift $2 billion of tax revenue that would otherwise be counted in the 2009-10 fiscal year to the coming fiscal year, which begins July 1, the report says.
Legislative Analyst Elizabeth Hill questioned the shifting of revenues from one fiscal year to another.
"In our initial review, we have not yet been able to determine whether this proposal is a reasonable change in accounting practices or merely a convenient way to generate a one-time revenue bump," she wrote in her 23-page report released Monday.
H.D. Palmer, spokesman for the governor's Department of Finance, defended Schwarzenegger's plan, saying the $2 billion accounting change would simply bring the state's system of accounting in line with accounting principles largely used by publicly traded firms.
But some economists on Monday called it an accounting gimmick that wouldn't help solve the state's fiscal mess.
--snip--
Sen. Tom McClintock, R-Thousand Oaks, said that such accounting methods plus additional borrowing would only exacerbate the problems plaguing the state budget.
"It sets in motion events that will require even more painful cuts later precisely because of borrowing and accounting gimmicks," he said. "The first law of holes is very important. If you're in one, stop digging. That means stop borrowing, stop Enron-accounting ... and start dealing honestly with the budget."
Just how the governor and the Legislature will solve the fiscal crisis could have immediate impact on California's credit rating.
(Excerpt) Read more at sfgate.com ...
A one-trick Trojan horse.
Just what California doesn’t need.
“Balance” the budget by borrowing. Sure sounds like a great conservative idea to me!
Governor Shriver.......aka Schwarzenegger
Unless the Governator has something major such as offshore drilling coming on line, he will be floating bonds that will sink almost immediately.
My accountant told me I can't do that to qualify for a new house loan... why not??
such accounting methods plus additional borrowing would only exacerbate the problems plaguing the state budget.
No posting on this thread, RD....(chuckle)
Terminator = Putz
Gee, I wonder what the democrat plan is. Hmmm, they don’t have one. I wonder why... could it be that Schwarzenegger has become their standard bearer? Always was you say... okay. Probably so.
I tried that once when I was younger. It doesn’t work.
The “covert Kennedy” strikes again.
The only difference in this Liberal incompetent governor and the last Liberal incompetent governor is party affiliation...
“R U READY 4 A RECALL”(Maybe we can get it right this time!)
“The first law of holes is ...”
I am the deficit terminator.
With Republicans like Arnold, who needs democrats?
I gotta get out of here.
Back in the 90’s this country, and CA in particular, enjoyed a huge tech boom. Everybody was making money, including CA. What did CA do with its windfall? They spent it and raised its budget to match this income.
Then the crash. What did CA do? They tossed out Gray Davis and replaced him with Arnie.
Arnie soon found he could not over-rule a dem state legislature, so what did he do? He borrowed money to get CA out of debt.
Soon, the nation and CA revovered from the crash and was agin flush with cash. CA realized a huge windfall from their sales tax on a doubled cost of gas and other fuels. The real estate bubble created more cash
What did CA do? They spent the money and now were in another downturn and back in debt.
What does Arnie want to do to get us out of debt again?
Borrow more money and then go back to spending with the dems.
Notice a pattern here?
Good luck.
Send a postcard when ya find a decent place to live and not be treated like an indentured slave to a state run by socialists on steroids. There ain’t that many out there, unfortunately.
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