Skip to comments.California Governor's budget has surprise: a surplus!
Posted on 01/11/2013 8:23:20 AM PST by SeekAndFind
SACRAMENTO, California (Reuters) - California's budget deficit is gone after years of financial troubles, Governor Jerry Brown said on Thursday, proposing a state budget plan that would raise spending on education and healthcare, boosting total expenditures by 5 percent with a surplus remaining.
But Brown vowed to push back at legislators eager to increase spending even more by restoring the billions of dollars to social services and other state programs cut in lean years.
"I am determined to avoid the fiscal mess that the last few governors had to deal with," Brown told reporters as he introduced his budget plan for the 2013-14 fiscal year beginning in July. Leading Democratic legislators agree with his plan.
California's economy melted down with the housing market, slashing the state's revenue, but it is finally on the mend. For years the state's leaders have tackled budget deficits with a combination of deep cuts and accounting gimmicks. The projected surplus is now the latest surprise.
Businesses are hiring again and voters in November approved temporary hikes to the state sales tax and income tax rates on wealthy taxpayers.
California's job growth tops the national average, unemployment has fallen to below double-digit levels for the first time in nearly four years and more money is expected to flow into state coffers from the voter-approved tax increases.
The state Department of Finance projected unemployment will fall to 9.6 percent this year and 8.7 percent in 2014.
Brown's budget plan projects $98.5 billion in revenues and transfers and plans spending of $97.7 billion, according to the proposal published on the state Department of Finance website.
That would leave a surplus of $851 million, in addition to a projected $785 million surplus for the current fiscal year,
(Excerpt) Read more at news.yahoo.com ...
He's gonna mint a $16 billion dollar platinum coin.
It's hard to imagine this actually happening but I'll grudgingly credit the Gov for his effort.
I know that our faithful, truthful government in Taxifornia has told us glowing numbers and projections every year only to have reality come crashing in! I don’t see how California will ever have a balanced budget let alone a surplus when the government does everything it can to drive industry and wealth out of the state! Hell even the illegals are learning that it’s time to get out, at least the more educated ones, leaving us with an even larger segment of non producers to support.
Never believe anything Brown says, he is tree hugging enviro nazi who always has and always will do everything he can to drive this state into the neolithic heaven that the greens desire. Also he admitted in an interview before he was re elected that He, just like all politicians lie to get elected.
They already budgeted for the money returned for sequestration should it happen as well as other programs.
If sequestration doesn’t happen, Brown needs to remove 350 mill from the 2013-2014 budget.
Did Brown just pull a trillion dollar coin out of his a$$?
One also suspects that Mister Madoff was less clumsy of an unconscionable liar than appears Mister Brown.
Brown reminds me of my daschund. Brown submits a budget every year that has all these flowery projections about increased revenues and than they fail to materialize. The following year he does the same thing again.
Otto my little dog, bless his heart, gets all wiggly every time he sees me eating something just knowing he is going to get some of it. Just like Brown he doesn’t get his way but he shows up at the next meal ecstatic that he is going to get the lions share. You have to give them credit for their optimism .
1.Businesses are hiring again - in other states after move
2.Surplus - of illegals
3.California’s budget deficit - Unions
I suppose I’m ignorant on why politicians were ever allowed with getting away with predicting revenue income and basing a budget on that. I think it should be constitutionally mandated that they can only spend the money that they have ALREADY collected from the previous year. It would be difficult to run a deficit if that were the case.
One minor problem with this scenario
Unfunded Pension Obligations Threaten Budget Funding for Core Priorities
Independent experts agree that California’s unfunded public employee pension obligations are becoming more and more of a budget problem - both for state and local governments.
Many recent, nonpartisan studies have illustrated just a how big a problem unfunded public employee pension obligations have become, though estimates of the scope of the problem vary.
As of June 30, 2009, the California Public Employees Retirement System (CalPERS) reported that its unfunded actuarial accrued liabilities in its main pension fund for state and local governments was over $49 billion-consisting of about $23 billion for the state and $26 billion for other public agenciesi
Showing a bigger problem, a report by the bipartisan Little Hoover Commission found that the top 10 public employee pension systems in California - including plans for both state and local government workers - faced a combined $240 billion shortfall as of 2010.
A study by the Stanford Institute for Economic Policy Research more recently pegged the combined total unfunded pension liabilities of CalPERS, the California State Teachers Retirement System (CalSTRS) and the University of California retirement plan at $485 billion.
I thot I read “projected “ surplus? Well sure, that’s California style positive wishing at its finest. The exact same clever planning the Fedz use. Business idea: rush a truckload of arm splints to Sacramento-—they’re gonna need them from slapping themselves on the back.
They 've created a new accounting system: NIFO -- None In, First Out.
You forgot illegals (3).
I project that I am going to win the lottery this year.