Posted on 11/18/2004 12:45:18 PM PST by calcowgirl
Analyst advises action now to aid budget later
Breaking deal on education funds could cut deficit
Sacramento -- California might be able to coast through the next fiscal year after tackling a relatively modest budget deficit, but the state is once again headed for several years of significant shortfalls if no corrective measures are taken, the nonpartisan legislative analyst said Wednesday.
Elizabeth Hill said the deficit for the upcoming budget year was $6.7 billion but could be as low as $3.9 billion, depending on how lawmakers handled education spending.
Hill warned, however, that the deficit could spiral to nearly $10 billion the following year.
"California policy-makers will face a deceptively difficult challenge because the 2005-06 fiscal year masks a very significant underlying problem that will emerge just a year later," she said.
Despite rosy predictions from Gov. Arnold Schwarzenegger that the rebounding economy will help lead the state out of its financial predicament, Hill said even consistently growing revenues would not stop deficits from hovering around $10 billion into the 2008-09 budget year.
"In our view, the size and persistence of the shortfall, particularly in light of both a strengthening economy as well as general fund revenues, means the state needs to take action now," said Hill, who has been advising the Legislature on fiscal matters for nearly 20 years. She estimated the state would have $2.1 billion more in revenue next year than previously predicted.
(Excerpt) Read more at sfgate.com ...
Democrats in the Legislature have pushed for tax increases, along with spending cuts, to help close the gap between what the state spends and takes in. Republicans, including Schwarzenegger, have eschewed tax increases of any kind, saying taxpayers should not pay for the overspending of politicians.
But Tuesday, the governor said on CNN's "Larry King Live" that he might support voter-approved tax increases to pay for certain things such as infrastructure. However, Hill warned that taxes for specified purposes wouldn't necessarily help problems in the general fund.
Here we go....
"...might support voter-approved tax increases"
Ping
Now how is that gonna help him in his great ambition?
When Schwarzenegger increases our user fees, consumption taxes ad valorum taxes or personal income tax rates to preserve California's Utopian state services and it's bloated state payroll/retirement it will come as no surprise to all but the politically illiterate.
Get rid of Schwarzenegger. Replace him with either a moderate or conservative but get rid of him ASAP.
See? Nobody wants to take responsibility and the ballot is just a damn cop-out for "leaders" to jump out in front of "the peephole," at the last possible instant with media cameras absorbing all those Rah-Rah Rhetorical One-Liners!!!
I see a "Train Wreck" comin for CA state government!!!
It's kindergarten every day in Sacramento...
Hey, that conservative demigod we have as a governor will take care of it, won't he?
My son was looking for some big words today. I like this one.
Can you believe... She's even far left of him!!! (they're starting to eat their own)
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