Posted on 05/26/2013 9:18:53 PM PDT by blam
California Now Has So Much Money Coming In That It Doesn't Know What To Do With It
Rob Wile
May 26, 2013, 10:05 PM
California now has so much projected revenue that Sacramento legislators don't what to do with it, The New York Times' Adam Nagourney reports.
The final budget surplus figure for 2014 will fall somewhere between $1.2 and $4.4 billion, depending on who's counting.
"An unexpected surplus is fueling an argument over how the state should respond to its turn of good fortune," writes Nagourney.
Just three years ago, of course, the state was running a $60 billion deficit.
The surplus is almost certainly the result of wealthy Californians trying to bank capital gains before the Bush tax cuts expired, Nagourney says.
But however it got there, state officials are already bickering over whether the money should be set aside or used to revive mothballed programs.
Read the full report on NYTimes.com
(Excerpt) Read more at businessinsider.com ...
We’ll know this is true only when the libislature finally stops trying to trick the people into supporting more tax increases.
And we’ll know they’ve given up on tax increases when they finally open up the rest stops going to Vegas.
After all, those were closed for the same reason they cut parks, firefighters, and road repairs: They want the taxpayers to feel pain in a visible way.
I'm curious to find out if they're playing a shell game.
California projects tax income using chickens, laying uncandled eggs.
If you believe that BS I have a bridge in Arizona I would like to sell you. There is no surplus and there will be no surplus. This is all projected, no real money has shown up yet and never will.
These morons are not only going to spend it, they are going to budget it indexed to 3x inflation for the next 8 years. The same way we got into the $60B hole the last time, by budgeting windfall money that everyone knew was a one-time boon.
send some back to the rightful owners the taxpayers!
Exactly. You would think they’d rescind some of those “temporary” taxes. I’m guessing they won’t.
I have a feeling this projected revenue will never materialize
That is exactly what I was thinking
They know its there and the article tells you why. The thing is as of now its not repeatable unless people take profits again. They simply are not sure of the final count. Whatever they sold prior to take advantage of the tax cuts expiring was one time. They would need to do it once again for the surplus to be repeated. Let them spend it. Next year they’ll be walking around with a tin cup again.
This projection assumes that people earned more, did not change their habits, that businesses and taxpayers did not move out of state and a bunch of other idiocies I bet.
From what I have read, I believe you are absolutely correct.
Housing prices are recovering at a rapid pace in CA. A point will be reached where it levels off.
When taxes are raised, people alter their behavior to avoid them.
A few years back, Corzine slapped a tax on NJ millionaires and tens of billions of $$$ left the state. Christie vetoed the renewal of the tax and caught heck for it.
If CA doesn’t pay down debt with the surplus, it severely weakens their case when down the road they go to DC with their hands out.
I can hardly wait for the series of “UNEXPECTED” articles that turn out 6 months from now.
Something is missing from the picture of the outstretched hand - Where is the Penguin with the yard stick?
A projection is not the same as cash on hand. I still think they’re counting chickens way too soon.
A lot of fundamental things need to change in CA. Starting with the generosity towards non-producers, and the multiple carrots offered to illegals despite the people speaking clearly on that issue.
The problem is that too many politicians think that the people exist to serve government. That’s true at almost every level.
This forum, however, is not about politics. It is a place where conservatives discuss issues among themselves and come up with the right answer.
There HAS been discussion as to why the deficit has dropped. Again, the surplus is PROJECTED, it has not actually happened. That is reality.
I'm taking a wait and see attitude regarding next year's budget. If I were the betting type, I'd bet that the deficit reduction is short term.
This forum is about politics too, but I'm not talking politics. I'm talking about not believing something that hasn't happened yet.
no question but this one time windfall was predicted. it’s just not repeatable.
The PROJECTED is the subject of this story. What has been reported by the Contoller's office is a $1 billion deficit.
I am like you taking a wait and see approach.
There are people in the California GOP that will give you the same take I have. Brown has significantly brought down the deficit.
It is okay to be skeptical on government budget numbers. As it should be. But I'm not relying on just a news account or two.
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