California Budget Shortfall Nears $35 Billion

Yahoo News ^ | Dec. 18, 2002 | Reuters

[Nachum]

SAN FRANCISCO (Reuters) - California's budget deficit has ballooned to a staggering $34.8 billion, Gov. Gray Davis (news - web sites) announced on Wednesday, leaving lawmakers the task of crafting a new spending plan with scant revenues to fund state programs.

"(It) is far more than any expert predicted," Davis told reporters. Previous official estimates put the deficit at $21 billion.

Davis made his announcement after meeting with top legislative leaders to discuss the shortfall over the next 18 months that has already forced the Democratic governor to propose $10.2 billion in spending cuts in the nation's most populous and richest state.

California, like many U.S. states, is mired in a fiscal crisis due to the slack economy and weak stock market, which have dried up revenues flowing into state coffers.

Davis plans to unveil his budget plan for fiscal 2003-04 on Jan. 17. But the state's precarious position forced him to call a special session of the state Legislature this month to start dealing with the fiscal emergency.

Lawmakers have been at loggerheads over how to address the shortfall, with Republicans calling for reduced spending and Democrats urging tax hikes in order to preserve important state programs.

Davis' spending cuts, proposed earlier this month, seek to slash billions of dollars from a host of state programs, including education, health and social services.

Davis did not include tax increases in his initial proposal, but he has suggested new taxes may be needed when he issues his budget proposal in January.

[Nachum]

$#%^&# Davis!!! I knew it! Tax increases. Heard it on radio just a minute ago.

Arrrggggghhhh! I am so mad I could spit!!!

[visagoth]

Gosh... when I don't have enough income to pay my bills, I cut my spending.

... pretty hard thing to figure out... huh?

[Gophack]

No, Davis didn't say anything about tax increases. He only talked about revenue enhancements. You conservatives always cast stones. </sarcasm>

[relee]

35 Billion / 35 Million residents = 1 Thousand Dollars each. It's only $1,000, nothing to get upset about.

[FreePaul]

... when I don't have enough income to pay my bills, I cut my spending.

You aren't running for anything so you don't have to buy votes. No politician buys votes with his own money. As long as there are all of those people out there who can earn more money than they need the government has to take it away from them.

[Nachum]

Except for the 10 billion in bonds approved in the recent election...

[.38sw]

Grayout talked about California's "extremely progressive tax system" where 80% of the taxes come from 10% of the taxpayers, and he mentioned how the state revenues fall when these taxpayers can't "perform". At least that's what I remember, I was driving, too fast, and trying to pay a little bit of attention to traffic. :)

[NormsRevenge]

*^%$#@* BUMP

[Weimdog]

Could this have anything to do with it?

"California is the leading state of residence, with 2.0 million, or 40 percent of the undocumented population."

http://www.ins.usdoj.gov/graphics/aboutins/statistics/illegalalien/

Remember, California is what you get when the Democrats control everything.

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[rimmont]

"Could this have anything to do with it? 'California is the leading state of residence, with 2.0 million, or 40 percent of the undocumented population.'" THIS HAS EVERYTHING TO DO WITH IT.

By the way, that statistic understates the size of the problem

[Ernest_at_the_Beach]

We are going to be the example of well the Democrats can ruin things!

[Caipirabob]

Ya know, in Boston all it took was a tax on tea before they dumped the goods in the harbour and revolted. Time for CA to get in touch with it's patriotic roots.

[fogarty]

BWAHAHAH! What's that, take out the 5-10 million illegals, and the various other welfare moms and pops, and it's more like 35 billion/5 million = 7000 dollars each.

[Lizavetta]

Keep going, Doofus.

Whatever you do, don't mention the staggering costs of educating and medicating THE CITIZENS OF MEXICO (illegal aliens), and don't mention the numbers of businesses that have left the state - and consequently vaporized jobs - because of your taxation and regulation burdens.

Keep focusing on screwing the evil rich.

[Homer_J_Simpson]

Piece of cake. Tax increases not necessary. All we have to do is declare a one-year moratorium on government schools. Lock the doors, send all the kids home, furlough the teachers and other staff, can all the educrats in Sacramento. Think of the long-term savings when millions of parents discover they can actually educate their own children!

[roadcat]

Screw higher taxes, we've had enough of that. Let's charge fees on the ones causing the problems.

Let's see, how about a $1000 toll for all illegal aliens crossing the border, for each and every crossing. How about a surcharge on all money sent south beyond our borders by illegals, or outright confiscation. Of course, we need to charge for all those "free" services they're getting.

Damn the democrats, they'd rather stick it to the rest of us.

[dodger]

I loathe to say this, but it may be a blessing Simon lost his race. Demos rule California much as White Star Line ruled Titanic ....

California, it is time to move a few deck chairs and hope the ship goes down on an even keel, not nose first!