California: Scope of state deficit is anybody's guess for now

The Orange County Register ^ | Sunday, February 2, 2003 | John Howard The Orange County Register

[Ernest_at_the_Beach]

In a scant 150 days, official estimates of California's budget shortage ballooned 600 percent, from $5 billion in June to nearly $35 billion in December.

The size of the problem, the cuts or taxes needed to fix it, the amount of money flowing to the treasury, even the true impact of the decisions the Legislature made last week - all are in dispute. This conflict, driven by politics, accounting squabbles and misinformation, is fast becoming the centerpiece of the Great Budget Battle of 2003.

[Ernest_at_the_Beach]

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[FITZ]

What a mess.

[Ernest_at_the_Beach]

It's what you get when Crooks are running things!

[Parley Baer]

You are right. What a mess. Are they cutting back on spending or is the spending spree continuing based on last years budget? If so the deficit just keeps growing. Parley

[Steel Wolf]

You know what the answer is, California. Say it with me.

"Elect more Democrats!"

No matter how bad it gets, you must miss any opportunity, ignore any warning, defeat any conservative, and avoid any responsibility, to ensure that while the state is driven right off the cliff, that the Democrats stay behind the wheel.

[Brilliant]

Thank you, Gray Davis!!!!

[Ernest_at_the_Beach]

state is driven right off the cliff, that the Democrats stay behind the wheel

There are a lot of us out here in the car with them!
I prefer not to go over the cliff!

[concentric circles]

Part of the problem that the writer fails to note is that none of the state offices, including the Legislative Analyst's Office, uses standard accounting procedures.

One would think that this was elementary but it would cramp everyone's style in Sacramento and leave less wiggle room for all concerned.

The Orange County Register reported on a budget study by Chapman University: "Chapman's figures show the state's deficit will be only $5.9 billion, as opposed to nearly $31.4 billion the Davis administration has predicted for the 2002-03 fiscal year, said Esmael Adibi, director of Chapman's Anderson Center for Economic Research."

"Adibi's research also predicts a $4.9 billion deficit for the 2003-04 fiscal year, while the state predicts a $26.8 billion hole."

Its hard for me to imagine that Mr. Howard is not aware of this budget study reaching conclusions vastly different from the figures from Sacramento, his own paper has published stories about it and Chapman University is located in the town of Orange right next door to Santa Ana where the O.C. Register has its offices! Where is there a champion for the tax payer? Oh yeah, Tom McClintock.