Posted on 05/14/2012 3:24:51 AM PDT by tobyhill
(Democrat) California Governor Jerry Brown was elected in 2010 on a promise to fix the state's chronic fiscal crisis. His weekend announcement of a much bigger-than-expected shortfall in the state budget signals how far he still has to go.
In an unusual move that underscored the highly politicized nature of the state budget, Brown took to YouTube on Saturday to deliver the bad news: the state's projected budget deficit for the fiscal year starting July 1 is now $16 billion, up from the $9 billion anticipated in January.
The Democratic governor also warned of further cuts to an already-battered public education system if voters rejected a tax increase in a ballot initiative this fall.
On Monday, Brown will hold a news conference to detail the new budget deficit and how he intends to close it.
California, whose economy is the largest in the nation and would rank ninth in the world if the state were a country, has struggled for decades with a tax system in which property tax increases are limited by law and tax hikes of any kind must be approved by voter initiatives or a two-thirds vote of the legislature.
(Excerpt) Read more at reuters.com ...
“Brown pushes tax hike as California’s money woes deepen”
Brown will win tax increases.
California’s “money woes” will not be solved. They will grow worse as the tax base flees and revenues fail to rise. Revenues may even decrease.
Brown will push more tax hikes.
Brown will win more tax increases.
And you know what happens next....
I think that as the distance between states with massive public union debt and those who have limited it grows, that the blue states will move to somehow nationalize the debt and obligations.
“...that the blue states will move to somehow nationalize the debt and obligations.”
In that regard, this kind of debt is a power play...by which California can make a demand on South Carolina....
If that don’t trigger CW II....!!!
We’ll need a Constitutional Amendment prohibiting such nonsense..
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