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Shock: California Projects $25 Billion Deficit — After $98 Billion Surplus
Breitbart ^ | 11/16/2022 | Joel B Pollack

Posted on 11/16/2022 5:15:48 PM PST by ChicagoConservative27

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To: ChicagoConservative27

Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) The budget problem is mainly attributable to lower revenue estimates, which are lower than budget act projections from 2021‑22 through 2023‑24 by $41 billion. Revenue losses are offset by lower spending in certain areas. Over the subsequent years of the forecast, annual deficits would decline from $17 billion to $8 billion.

The $25 billion budget problem in 2023‑24 is roughly equivalent to the amount of general‑purpose reserves that the Legislature could have available to allocate to General Fund programs ($23 billion). While our lower revenue estimates incorporate the risk of a recession, they do not reflect a recession scenario. Based on historical experience, should a recession occur soon, revenues could be $30 billion to $50 billion below our revenue outlook in the budget window.

California’s revenues soared in the past two years, thanks to a speedy economic recovery that began under President Donald Trump, and massive transfers from the federal government under President Joe Biden.

The state was so flush with cash that Newsom sent lower-income households a “Golden State Stimulus” before his recall election last year, and sent them $400 checks to offset higher fuel costs before this year’s election.

However, California’s state budget is exceptionally sensitive to shifts in the national economic outlook, as it depends heavily on tax revenues from a very small group of high earners in Silicon Valley and Hollywood.


21 posted on 11/16/2022 5:25:22 PM PST by kabar
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To: ChicagoConservative27

I never believed the first number.....Pretty sure I called BS on that!!!


22 posted on 11/16/2022 5:25:44 PM PST by Osage Orange
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To: Dilbert San Diego

Math is important...


23 posted on 11/16/2022 5:27:43 PM PST by Osage Orange
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To: ChicagoConservative27; All

Deficit or surplus, whichever is the best, pro-Demcratic propaganda of the hour.


24 posted on 11/16/2022 5:28:43 PM PST by Amendment10
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To: ChicagoConservative27

Some kid probably sank it all into FTx……


25 posted on 11/16/2022 5:28:46 PM PST by neodad (USS Vincennes (CG-49) Freedom's Fortress )
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To: irishjuggler

The question is, did they budget the surplus money or bank it for a rainy day? My bet is they budgeted or otherwise spent most of the surplus.


26 posted on 11/16/2022 5:29:42 PM PST by monkeyshine (live and let live is dead)
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To: ChicagoConservative27

How is it possible? You have to ask?

The Patriarch of the most powerful family in California just got caught B*ttF***ing an illegal alien homeless guy.

California is just too stupid to survive. As is America.


27 posted on 11/16/2022 5:30:28 PM PST by Scott from the Left Coast (Make Orwell Fiction Again)
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To: Alberta's Child

Yep. Think of how much of that money, going to all the states, was siphoned off into the pockets of these grifters.


28 posted on 11/16/2022 5:31:11 PM PST by rlmorel (Nolnah's Razor: Never attribute to incompetence that which is adequately explained by malice.)
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To: ProtectOurFreedom

The whole “You will own nothing and you will be happy” concept — I absolutely believe that the Globalists dream of a world in bondage. That’s the goal. It’s not any sort of “unfortunate outcome”. They are driving hard to trash everything that might provide freedom so that they can rule over a world of slaves. Bondage coming up real soon.


29 posted on 11/16/2022 5:31:12 PM PST by ClearCase_guy (We are already in a revolutionary period, and the Rule of Law means nothing. )
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To: ProtectOurFreedom

It is related to this:

Hard times create strong men.

Strong men create good times.

Good times create weak men.

Weak men create hard times.


30 posted on 11/16/2022 5:33:25 PM PST by rlmorel (Nolnah's Razor: Never attribute to incompetence that which is adequately explained by malice.)
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To: rlmorel

Yes, exact same thinking and cause/effect. I always liked the way it’s phrased in your comment.


31 posted on 11/16/2022 5:34:53 PM PST by ProtectOurFreedom (If you're not part of the solution, you're just scumming up the bottom of the beaker!)
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To: fruser1

A regular f’n genius she is.


32 posted on 11/16/2022 5:34:58 PM PST by Paladin2
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To: ChicagoConservative27

And Gavin’s Aunt Nancy won’t be able to print trillions for him in a few weeks.

Reality is sauntering their way, carrying a big stick. The big losers will be the state employees with retirement pensions.

Was it Reagan who said if socialists took over Arabia, they would shortly run out of sand?


33 posted on 11/16/2022 5:36:24 PM PST by lurk (u)
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To: ChicagoConservative27

Really? Democrats have their hands on a huge pot of gold and their voting groups want a piece. Housing, feeding and healthcare for the hordes of immigrant invaders is very expensive.


34 posted on 11/16/2022 5:38:33 PM PST by Kaiser8408a (z)
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To: ProtectOurFreedom

I think it was coined by a guy named G. Michael Hoof-the first time I saw it, I thought “Yes. That covers it.”

Anyone who has read any history in any depth knows that is a pretty accurate statement. It definitely reflects some key aspects of human nature.

I just hate seeing it in real time.


35 posted on 11/16/2022 5:40:40 PM PST by rlmorel (Nolnah's Razor: Never attribute to incompetence that which is adequately explained by malice.)
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To: Dilbert San Diego
If there was a $98 billion dollar Surplus one year and $25 billion deficit the next year, wouldn’t the state still have 73 billion dollars in the bank at the end of the next year?

Not if you spent $25 billion more than the surplus in year one. You would start year two with a $25 billion deficit.

36 posted on 11/16/2022 5:42:50 PM PST by hflynn
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To: rlmorel

$

http://theeconomiccollapseblog.com/the-end-of-the-retail-industry-as-we-know-it-today/


37 posted on 11/16/2022 5:43:09 PM PST by combat_boots ( )
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To: ClearCase_guy

I am completely in agreement with your assessment. As an optimist my whole life, that admission saddens me more than I can say.

For much of my life, my outlook on many unfortunate things was the polar opposite of my FR tagline.

But there it is.


38 posted on 11/16/2022 5:43:27 PM PST by rlmorel (Nolnah's Razor: Never attribute to incompetence that which is adequately explained by malice.)
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To: Alberta's Child

California also gets a bunch of its money from capital gains on equities. That’s over for now.


39 posted on 11/16/2022 5:44:20 PM PST by glorgau
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To: combat_boots

I can’t even bring myself to click on that link.

I have to take a break.

I am dictating an audiobook about Dr. Joseph Warren from our Revolutionary Past, which seems to me now a golden age. I guess while I read it, I can get lost in that for a few hours.


40 posted on 11/16/2022 5:45:18 PM PST by rlmorel (Nolnah's Razor: Never attribute to incompetence that which is adequately explained by malice.)
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