its a budget deficit, its not a tumor.
Posted on 05/14/2008 8:14:18 AM PDT by SmithL
SACRAMENTO — Gov. Arnold Schwarzenegger on Wednesday will propose borrowing against future state lottery revenue to help close a $15.2 billion budget deficit in the next fiscal year.
The governor will propose raising $15 billion in the next three years by selling bonds based on anticipated lottery revenue. He will use about $5.1 billion of that for the 2008-09 fiscal year to help erase the deficit, administration officials said Tuesday.
The other $10 billion would be left in a reserve fund the governor wants to create as part of a budget-reform proposal. It would be intended to ease the effect of year-to-year revenue fluctuations.
The revenue proposal — which administration officials refer to as "securitizing" the lottery — would require voter approval because the lottery was established through the initiative process.
If it fails, the governor will ask the Legislature to approve a temporary 1 cent increase in the state sales tax to pay for the reserve fund. It would last no more than three years.
Schwarzenegger also will propose a surcharge on homeowners insurance policies that would raise $69 million a year for the state's emergency services, spokesman Aaron McLear said.
The budget the governor will release Wednesday backs away from some of the less politically popular proposals in the $141 billion budget plan he released in January, including a proposal to suspend the minimum school-funding guarantee, Proposition 98.
Instead, the budget proposal will include a $1.8 billion increase in funding to schools over 2007-08 levels. Schools still will lose about $4 billion in anticipated revenue because Schwarzenegger's plan would not include program cost-of-living increases.
Adding the anticipated $5.1 billion in lottery bond revenue and saving the $4 billion in education spending leaves the administration with about $6 billion in cuts needed to balance the budget.
(Excerpt) Read more at contracostatimes.com ...
Yeah, that's the ticket!
its a budget deficit, its not a tumor.
So cutting spending is simply not even considered anymore.
I honestly can’t believe that this financial scheme is being taken seriously.
I use to like this guy but he has now gone over to the dark side.
here is a novel idea.......if ya ain’t got it, don’t spend it.......
Not only that, but education spending is actually increased, although they say it's a net loss, because they're not going to get "anticipated revenue"...
“So cutting spending is simply not even considered anymore.”
Directly impacts the money available to steal. Forget it.
RNC RINO’s coming home to roost.
Sure..that will work..borrow the deficit. We all thought the gambling went to education.
Borrow against better times..when it comes..if it comes..borrow some more.
What will those bonds cost? The state is broke and high earning tax payers are leaving..this won’t help.
Before everyone jumps up to declare that No One Is Trying To Cut Spending — be aware of a legally crushing reality.
The Costs Of Pensions And Health Care For State Retirees is contractually obligated and THOSE COSTS are the real problem. Not spending on schools or “social programs. The problem is pensions and health care for elderly state employee retirees. Those numbers are exploding far beyond schools or social programs.
If you try to cut that, it goes to court. But you MUST cut that or the mathematics will never work out. EVER.
So when you advocate spending cuts, start with the retirees. And when you budget for it, make a healthy chunk of your budgeted expenditures the legal fees required.
In general, the only way out is for the state to declare bankruptcy and to get the bankruptcy judge to void the state retiree contracts so that some lesser manageable amount can be imposed.
Elderly? Many state and local employees are retiring in their early 50s with these platinum-plated retirement packages. As you said, the costs are staggering.
I recall how excited some were at the prospect of his running for office. And how Rush and others said he isn’t a conservative, and he isn’t.
I do not feel sorry for the taxpayers in CA, they elected him, now they get watch as he takes the state down the toilet.
Problem is the media will point to him and say he is a conservative and our policies don’t work.
When conservativism works, it’s his Socialist policies that have failed.
And IMHO, Juan McStupid is worse.
Carolyn
Gotta love the headline writer.
There he goes - - Schwarzenneger said he would never raise taxes. So it's now official - - he's a lying scumbag.
Surprise, surprise...
Teacher layoffs in todays Times-Standard. For a good laugh Please read the comments at the end... http://www.topix.net/forum/source/eureka-times-standard/T8TI27HPO0PBMVR29
There’s nothing less temporary than a temporary tax.
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