Posted on 05/26/2013 9:18:53 PM PDT by blam
California Now Has So Much Money Coming In That It Doesn't Know What To Do With It
Rob Wile
May 26, 2013, 10:05 PM
California now has so much projected revenue that Sacramento legislators don't what to do with it, The New York Times' Adam Nagourney reports.
The final budget surplus figure for 2014 will fall somewhere between $1.2 and $4.4 billion, depending on who's counting.
"An unexpected surplus is fueling an argument over how the state should respond to its turn of good fortune," writes Nagourney.
Just three years ago, of course, the state was running a $60 billion deficit.
The surplus is almost certainly the result of wealthy Californians trying to bank capital gains before the Bush tax cuts expired, Nagourney says.
But however it got there, state officials are already bickering over whether the money should be set aside or used to revive mothballed programs.
Read the full report on NYTimes.com
(Excerpt) Read more at businessinsider.com ...
Spend it! Spend it! You know you can, California!
There can be only one logical conclusion; Raise taxes.
Build high speed rail? Free gay weddings for everybody? New “Rainbow Edition” Boy Scout handbooks?
Since when do tax increases actually yield the quantity of money they are projected to bring in?
That old saying about not counting the chickens before they hatch comes to mind. I'm betting the projected revenue never materializes.
B/S.
I'm betting a $100 dollars to a DONUT you're correct.
“...Unexpected surplus...”, “...Good fortune...”
These clowns really do think that money just appears out of nowhere.
At best, they guess you print it up willy-nilly and it’s the fault of meanies that just want to hog it all. And the only way to get is to tax “the rich.”
garbage to scare the rubes from fleeing california confiscatory taxes.
Projected to still have a net exodus.
Exactly. They jacked up taxes 6 months ago and they’re counting on it producing higher revenues. Although it may produce some positive effects this year(partially due to it being retroactive), the next year the business community will adjust their tax strategy and they’ll be back at square one.
Not to mention the money dumping into the housing market the Feds have been doing have been shoring up states, like California, with housing bubbles.
is this their yearly deficit? from The Washington Times April 1 2013A financial report issued by state auditors finds that the state of California is in the red by an unsustainable $127.2 billion.
The report says that the state’s negative status increased that year, largely because it spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion in fiscal year 2011-2012, the Sacramento Bee stated.
There is NO surplus money, if debts are still owed. There might be extra money coming in, but that is not a surplus in this situation.
It is what comes of years of the press and politicians working to conflate "debt" and "deficit" in public mind.
Along the same line is balanced budget. Either a budget balances, i.e. assets = liabilities, or there else there is either an error or criminal activity. A budget is balanced whether it shows a deficit, surplus, or parity.
“B/S.”
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Dittos....triple BS.
It was not long ago that California was facing a $24 billion deficit. That was a big problem. People might be opposed to the way Brown solved that giant problem but there is no denying he solved it.
As for any surplus, it should go to fund pensions to get that monster under control...right after pension reform is enacted to stop the double and triple dipping and government official retiring with $150,000 to $200,000 a year plus medical for life.
I don’t buy this for one second.
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