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 ...
Repay the federal tax-Ayer for the failed high speed train.
Hunter Biden is available to manage the fund.
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.
“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.
“is the state overcharging for taxes? “
DUH!
“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.
They should send Trump a big THANK YOU.
The surplus is a result of the Trump economy.
If they count the unfounded liabilities for future pensions of the bloated public service with their bloated retirement deals, the state is underwater.
“The surplus is a result of the Trump economy.”
Correct.
See my #44.
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!
Spending continues unchecked.
Liberal math, 2+2=5
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.”
7 billion dollar surplus...yeah right let’s see it.
They will spebd it all on Teachers and Public employee unions, illegal aliens or queers.
Exactly. Who in their right mind believes this?
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!)
They’re doing something the federal government won’t be doing any time soon.
Into demonrat wallets.
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