Posted on 04/23/2002 2:36:35 PM PDT by let freedom sing
Edited on 04/12/2004 5:35:13 PM PDT by Jim Robinson. [history]
The shortfall is now $20 billion as tax receipts trail estimates. Anemic income tax receipts reflected in this month's returns will push the state an additional $4.5 billion into the budget hole, officials say, leaving the Legislature and Gov. Gray Davis with a shortfall of $20 billion or more.
(Excerpt) Read more at sacbee.com ...
Well, no. It only makes sense to borrow when you are funding long-term capital expenditures. Borrowing to fund deficits is a seriously bad practice. They only do that in banana republics.
Which is what California has become.
It will be interesting to see how Davis tries to blame all those filthy rich Republicans like Simon, who don't pay their "fair share" of state income taxes as the reason for Davis and the Special Programs to be victims of republicanism. Davis does have enough money to buy media time and spread lies, which is what he will do. However, hopefully, the truth will come out and he and his Democratic legislature will end up being hoisted on their own petard (sp?).
Wow such beathtaking honesty. What they "achieved" was a squandering of an $8 billion surplus and a trip on a high-speed train wreck of a $22 billion deficit.
If you have to be a piano player in a whorehouse, you might as well take pride in your work.
I've come to ONE conclusion---California 'fiscally impaired' Democrats be gone.
From a $10 billion surplus to a $20 billion deficit in 3 years. That's a $10 billion a year OVERSPEND in a state where balancing the budgets is mandatory. Sounds like they are going to 'balance it on the backs of our children'. At least that's what THEY claim when the President's surplus doesn't materialize.
From a plus $10 billion to a minus $20 billion is some collapse in both tax revenues and puffed up expenditures, but hey Democrats are born to spend other people's money!
Personally, I'll take the 'voodoo economics' of the Republicans over the 'screw you economics' of the central planning Socialists any day of the week. {;~)
"It's doable," said Sen. Steve Peace, D-El Cajon, chairman of the Senate Budget Committee. "You borrow and cut. You've got to come to the realization that a significant part of this will be borrowing."
Low interest rates and investors in search of high-quality government bonds makes that strategy particularly attractive, Peace said.
"This is when it makes sense to borrow," he said.
Of course thanks to Clymers like Steve Peace, Facist Davis and the king of tax and spend Burton, our Kali bonds are no longer high quality bonds. The last small for Kali general bond issue did not sell out last week.
I understand that Davis has ordered a tube of KY jelly for every democrat who has a retirement/investment plan with Cal Pers.
When Wall Street turns down the used electricity bonds to give a free electicity lunch to Kali Socialists, Davis will order Cal Pers to buy these loser bonds. Cal Pers will soften the blow to the state employees. Each member will get a tube of KY jelly and be allowed to use it liberally during the upcoming BOHICA Kali bond sale that no one will want to buy.
I have letters ready to go the managers of all our mututal funds with bonds, telling them not buy a single Kali used electricity bond. I will demand full disclosure if they buy any of these bonds so we can sell and go elsewhere to protect our investments.
We don't buy junk bonds from companies, countries, states, cities and the Facist State of Kali!
Conservatives across this nation should be letting their retirement fund mangagers and mutual fund managers to just say no to any all ready used electricity Kali Junk Bonds!
Not when you pay $68.00 per magawatt hour for power that is currently selling for $20 mwhr. Peace also hasn't looked at the price of natural gas lately ($3.50 per mcf).
California is not yet out of the woods on power crises. Pray for a mild summer.
That's close! The old $18.5 billion number was before they got a good look at the first quarter estimated tax payments. For anyone who sees what's going on in the Santa Clara Valley, it's not hard to figure out that the receipts weren't going to be anywhere near what they thought.
But then, I guess you have to be RAT to think the inflows are endless.
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