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California is on track for a $7 billion budget surplus. Where will the money go?
The Sacramento Bee ^ | November 20th, 2019 | By Sophia Bollag

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 ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
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To: Mariner

Repay the federal tax-Ayer for the failed high speed train.


41 posted on 11/20/2019 3:54:05 PM PST by Reno89519 (No Amnesty! No Catch-and-Release! Just Say No to All Illegal Aliens! Arrest & Deport!)
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To: Mariner

Hunter Biden is available to manage the fund.


42 posted on 11/20/2019 3:54:57 PM PST by ptsal
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To: Mariner

5th largest economy....

So does this mean Warren,Bernie and AOC have the right plan for America’s socialist-communist future after 2021? Switch from we love Venezuela (and Cuba’s health plan) to we love California?

God forbid.


43 posted on 11/20/2019 3:54:59 PM PST by frank ballenger (End vote fraud & harvesting,non-citizen voting & leftist media news censorship or we are finished.)
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To: Stingray51

“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)?”

Debt to GDP
https://www.usgovernmentspending.com/state_spending_rank_2020pH0s

In the middle of the pack at 4.99%, excluding local governments and school boards, water districts etc.

Pension costs are handled for all State and Municipal employees by a separate entity CalPers. Governments and employees make monthly contributions.

CalPers is estimated to be about 78% funded over a 30 year horizon. So, eventually State agencies, municipalities and their employees will have to contribute more. But it’s not on the verge of imminent collapse by any means.


44 posted on 11/20/2019 3:56:19 PM PST by Mariner (War Criminal #18)
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To: realcleanguy

“is the state overcharging for taxes? “

DUH!


45 posted on 11/20/2019 3:57:37 PM PST by Mariner (War Criminal #18)
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To: frank ballenger

“So does this mean Warren,Bernie and AOC have the right plan for America’s socialist-communist future after 2021?”

That’s funny right there.


46 posted on 11/20/2019 3:58:33 PM PST by Mariner (War Criminal #18)
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To: Mariner

They should send Trump a big THANK YOU.

The surplus is a result of the Trump economy.


47 posted on 11/20/2019 3:59:02 PM PST by tired&retired (Blessings)
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To: Mariner

If they count the unfounded liabilities for future pensions of the bloated public service with their bloated retirement deals, the state is underwater.


48 posted on 11/20/2019 3:59:45 PM PST by Inkie
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To: tired&retired

“The surplus is a result of the Trump economy.”

Correct.


49 posted on 11/20/2019 4:00:12 PM PST by Mariner (War Criminal #18)
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To: Inkie

See my #44.


50 posted on 11/20/2019 4:00:47 PM PST by Mariner (War Criminal #18)
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To: Mariner

A drop of $21.5 billion to $7 billion is not a good trend for next year as the 3conomy improved and their surplus dropped!


51 posted on 11/20/2019 4:02:03 PM PST by tired&retired (Blessings)
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To: tired&retired

Spending continues unchecked.


52 posted on 11/20/2019 4:02:52 PM PST by Mariner (War Criminal #18)
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To: Mariner

Liberal math, 2+2=5


53 posted on 11/20/2019 4:08:22 PM PST by ronnie raygun (nic dip.com)
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To: Mariner

People don’t understand government “fund accounting.”

In Fund Accountong, unlike a business, they recognize proceeds of debt issued as revenue. A surplus often means they borrowed extra money.

For example...

“Overall, the budget includes nearly $140 billion from the state’s general fund and more than $60 billion in bond and special funds. And it forecasts a nearly $9 billion surplus, which would make it the largest in more than decade.”


54 posted on 11/20/2019 4:08:30 PM PST by tired&retired (Blessings)
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To: Mariner

7 billion dollar surplus...yeah right let’s see it.


55 posted on 11/20/2019 4:10:27 PM PST by jetson
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To: Mariner

They will spebd it all on Teachers and Public employee unions, illegal aliens or queers.


56 posted on 11/20/2019 4:12:54 PM PST by Liberal Anti Venom (In a free society, the last refuge of a moron is tyranny. ~Jeremy Egerer~)
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To: Tonytitan

Exactly. Who in their right mind believes this?


57 posted on 11/20/2019 4:13:33 PM PST by Hardastarboard (Three most annoying words on the internet - "Watch the video")
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To: Mariner; All
California needs to support PDJT in working with Congress to put a stop to unconstitutional federal taxes, taxes that Congress cannot justify under its constitutional Article I, Section 8-limited powers.

Pre-FDR era, state sovereignty-respecting justices had put it this way about Congress’s constitutionally limited power to appropriate taxes.

"Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.

California should wait until unconstitutional federal taxes are stopped and new state revenues are ultimately found before bragging about any surplus.

Remember in November 2020!

MAGA! Now KAG! (Keep America Great!)

58 posted on 11/20/2019 4:14:57 PM PST by Amendment10
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To: Mariner

They’re doing something the federal government won’t be doing any time soon.


59 posted on 11/20/2019 4:15:02 PM PST by DoodleDawg
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To: Mariner

Into demonrat wallets.


60 posted on 11/20/2019 4:20:25 PM PST by bgill
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