Posted on 11/20/2019 3:09:00 PM PST by Mariner
California’s long economic expansion is projected to continue into next year, giving Gov. Gavin Newsom and lawmakers another surplus as they map out a new state budget.
Legislative Analyst Gabriel Petek released a report Wednesday projecting the state will bring in a $7 billion surplus in the 2020-21 budget year.
That’s far less than the $21.5 billion surplus California is collecting this year, but it still reflects a positive outlook for the state’s economy.
“The budget picture is strong and favorable. Full stop,” Petek told reporters Wednesday.
As much $3 billion could be available for ongoing expenses, while the rest could dry up in an economic downturn, according to the report. But the analyst’s office recommends the Legislature allocate no more than $1 billion of the surplus to ongoing expenses to avoid having to make cuts to programs during a recession.
(Excerpt) Read more at sacbee.com ...
Sorry, mathematical conclusions from the poor math party are not believable. Color me doubtful.
“7 billion dollar surplus? California? Are you sure this isn’t the Babylon Bee?”
That was my thought, too. I figured it had to be satire.
Hmmm.... a drop from the $21.5 billion surplus this tax year for California down to a projected surplus of only $7 billion for the next tax year is quite a plunge for an economy that is booming.
Did California drastically lower its income, sales and gas tax rates? Or it something else going on?
You got us on that gag. We've been laughing for five minutes. What's the next plan==honesty in government?
Real plan: Project to gather data from minorities on the attitudes and feelings of people of color about their being disproportionately hurt by California's slowness to fight climate change. Uh, project will cost $9 million so cough up more money, taxpayers.
I’m inclined to agree. Sounds like creative accounting.
With the state pension fund in such sorry shape they ought to be using this (temporary) surplus to shore it up for the longer term. But since they figure they will go to Uncle Sam for a handout when the fund is declared totally insolvent, they don’t care.
Certainly not for road repair.
Remember the guy in Office Space "I always make mistakes like that. Decimal one place wrong."
How else could a socialist third world country "California" not have a deficit?
“Or it something else going on?”
Spending. Program “expansion”. New programs.
They’re drunk on it. The budget this year was well over $200 billion. A decade ago it was around $100 billion.
“... Where will the money go?..”
Another 5-10 miles of train track.
We overcharged people by $7 billion, where can we spend it?
In the Democrat National Committee’s treasury and the Democrat politician’s bank accounts.
“How else could a socialist third world country “California” not have a deficit? “
5th largest economy in the world, just above UK and just below Germany. And growing. Tech. Agriculture. Manufacturing. Finance and Insurance.
I don’t know how they do it either. Must be the weather.
So how much does California owe in outstanding bonds, how much is it paying in interest this year and what are its unfunded future obligations (such as some portion of state pensions)? I suspect that the “surplus” is purely cash flow that does not reflect the state’s massive borrowing and massive under-saving.
I assume a better way of looking at it is to look at the state balance sheet including debt. Was the increase in bond and pension liabilities greater than this surplus? If so the state continues to dig a deeper hole for itself.
They are lying. Just want to get some spending bills passed, pilfer the treasure for themselves and friends.
Forest management.
I suspect any government accounting that would show a surplus.
That Laffer guy is amused...
Offshore.Way offshore.
Wait, so since the money comes from Tax revenues, is the state overcharging for taxes? So the state lied about their needs? Lied to the people?
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