Posted on 11/16/2022 5:15:48 PM PST by ChicagoConservative27
The State of California will suffer a $25 billion deficit in 2023-2024, despite enjoying a record-setting $98 billion budget surplus this year, according to new analysis from the nonpartisan Legislative Analyst’s Office.
The new projections, released Wednesday, come just over a week after elections in which Democrats, including Gov. Gavin Newsom (D), were reelected to every statewide office after a year of lavish public spending.
The Legislative Analyst’s Office explained that the deficit could be even worse, if a recession is particularly bad (original emphasis):
(Excerpt) Read more at breitbart.com ...
Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) The budget problem is mainly attributable to lower revenue estimates, which are lower than budget act projections from 2021‑22 through 2023‑24 by $41 billion. Revenue losses are offset by lower spending in certain areas. Over the subsequent years of the forecast, annual deficits would decline from $17 billion to $8 billion.
…
The $25 billion budget problem in 2023‑24 is roughly equivalent to the amount of general‑purpose reserves that the Legislature could have available to allocate to General Fund programs ($23 billion). While our lower revenue estimates incorporate the risk of a recession, they do not reflect a recession scenario. Based on historical experience, should a recession occur soon, revenues could be $30 billion to $50 billion below our revenue outlook in the budget window.
California’s revenues soared in the past two years, thanks to a speedy economic recovery that began under President Donald Trump, and massive transfers from the federal government under President Joe Biden.
The state was so flush with cash that Newsom sent lower-income households a “Golden State Stimulus” before his recall election last year, and sent them $400 checks to offset higher fuel costs before this year’s election.
However, California’s state budget is exceptionally sensitive to shifts in the national economic outlook, as it depends heavily on tax revenues from a very small group of high earners in Silicon Valley and Hollywood.
I never believed the first number.....Pretty sure I called BS on that!!!
Math is important...
Deficit or surplus, whichever is the best, pro-Demcratic propaganda of the hour.
Some kid probably sank it all into FTx……
The question is, did they budget the surplus money or bank it for a rainy day? My bet is they budgeted or otherwise spent most of the surplus.
How is it possible? You have to ask?
The Patriarch of the most powerful family in California just got caught B*ttF***ing an illegal alien homeless guy.
California is just too stupid to survive. As is America.
Yep. Think of how much of that money, going to all the states, was siphoned off into the pockets of these grifters.
The whole “You will own nothing and you will be happy” concept — I absolutely believe that the Globalists dream of a world in bondage. That’s the goal. It’s not any sort of “unfortunate outcome”. They are driving hard to trash everything that might provide freedom so that they can rule over a world of slaves. Bondage coming up real soon.
It is related to this:
Hard times create strong men.
Strong men create good times.
Good times create weak men.
Weak men create hard times.
Yes, exact same thinking and cause/effect. I always liked the way it’s phrased in your comment.
A regular f’n genius she is.
And Gavin’s Aunt Nancy won’t be able to print trillions for him in a few weeks.
Reality is sauntering their way, carrying a big stick. The big losers will be the state employees with retirement pensions.
Was it Reagan who said if socialists took over Arabia, they would shortly run out of sand?
Really? Democrats have their hands on a huge pot of gold and their voting groups want a piece. Housing, feeding and healthcare for the hordes of immigrant invaders is very expensive.
I think it was coined by a guy named G. Michael Hoof-the first time I saw it, I thought “Yes. That covers it.”
Anyone who has read any history in any depth knows that is a pretty accurate statement. It definitely reflects some key aspects of human nature.
I just hate seeing it in real time.
Not if you spent $25 billion more than the surplus in year one. You would start year two with a $25 billion deficit.
I am completely in agreement with your assessment. As an optimist my whole life, that admission saddens me more than I can say.
For much of my life, my outlook on many unfortunate things was the polar opposite of my FR tagline.
But there it is.
California also gets a bunch of its money from capital gains on equities. That’s over for now.
I can’t even bring myself to click on that link.
I have to take a break.
I am dictating an audiobook about Dr. Joseph Warren from our Revolutionary Past, which seems to me now a golden age. I guess while I read it, I can get lost in that for a few hours.
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