Posted on 05/13/2005 3:43:22 PM PDT by calcowgirl
05:11 PM ET (Updates with background, comments)
SAN FRANCISCO, May 13 (Reuters) - California Gov. Arnold Schwarzenegger, citing better-than-expected revenues, unveiled a revised state budget on Friday for the coming fiscal year that would raise spending to $115.7 billion and plug a shortfall estimated to have narrowed to $4 billion.
Schwarzenegger also said he no longer sees the need for issuing debt, including $1.7 billion in economic recovery bonds, to balance the state's books.
His initial spending plan issued in January for California's 2005-06 fiscal year totaled $111.7 billion and aimed to balance the budget by closing a shortfall then estimated at about $9 billion.
"Last year we began to turn California around by being fiscally responsible, taking action to bring our economy back and making government work for the people once again," Schwarzenegger said. "And the great news for California is that our plan is working and as a result, revenues to the state have increased by more the $6 billion over last year."
Schwarzenegger said he plans to restore $1.3 billion in transportation funds he had initially planned to cut from the budget and he wants to pay city and county governments nearly $600 million owed to them from the state.
Arnold is setting new records.
Initial budget = 111.7B
Revised budget = 115.7B
Budget shortfall lowered to $4B
If he had kept the initial budget, there would be no shortfall whatsoever!
I suspect we'll see a replay of the dot.com bubble. Spectacular amounts of revenue are coming in to the state now because of the hot real estate market. What the politicians will do is to create new spending programs, and then when the surplus money runs out, they'll want taxes increased. They never change, and Arnold won't stop them.
That is another reason I don't like the Spending reform initiative. It ties spending to the 3 year average of revenues. And... revenues have been enhanced this year by a "tax amnesty" program that has brought in one-time.
They never change, and Arnold won't stop them.
WASS!
He's a Repellican, after all! There's that "R" after his name and that will make everythang all bedder, don'tcha know? Just do like the rest of the Repellicans and get thee out to the Cuntry Club, especially on Lady's day and make sure that they make sure that that "R" stands for moderation and mediocrity in all thangs, here???
Governor Arnold Schwarzenegger sent his revised state budget plan to the Legislature today - a spending plan that contains no new borrowing, no new taxes, and pays down a portion of the state's out-year debt a year early.
Governor Schwarzenegger's $115.7 billion "May Revision" to his January budget eliminates any borrowing by fully funding Proposition 42 in the 2005-06 fiscal year. The Governor's revised budget also eliminates any new borrowing from the Proposition 57 Economic Recovery Bond, which had been projected to be nearly $1.7 billion.
In addition, the May Revision takes advantage of one-time revenues to pay city and county governments nearly $600 million - half the amount due to them next year by law for vehicle license fee revenues they failed to receive two years ago.
"It is a responsible budget that pays down our debt and contains no new borrowing," Governor Schwarzenegger said. "It is a commonsense budget that uses one-time revenues for one-time expenditures. It doesn't make long-term commitments the state can't keep and establishes a prudent reserve."
Key Features of the May Revision include:
In Revenues: The budget reflects an increase in state revenues of $6 billion over what was predicted in January for the budget year, as well as additional revenue in the current year. However, given the one-time nature of revenues related to amnesty and a slower projected rate of economic growth, the budget does not allocate one-time revenues to increase ongoing state programs.
In Education: Despite the fact that Proposition 98 formulas would actually dictate a decrease of more than $500 million in the state's share of education funding next year, Governor Schwarzenegger's budget maintains the January level of funding, and provides an additional $252 million in one-time funds for such projects as:
* Recognition Pay, to encourage qualified teachers and principals to serve in lower-performing school districts.
* Expanding Class-Size Reduction for up to 2,400 eligible schools that are considered lower-performing as measured by the Academic Performance Index.
* Additional instruction for students who have failed or are in danger of failing the High School Exit Exam.
* Providing more fruits and vegetables for the 172 million free or reduced-priced breakfasts served in the School Breakfast Program.
* Expanding physical fitness testing to the 3rd grade and notifying parents or guardians of test results.
In Higher Education: The May Revision fully funds the Governor's Compact with Higher Education, and provides an additional $1 million for the University of California and California State University to begin the first phase of a new Science and Math Teacher Initiative. In addition, the May Revision restores the maximum Cal Grant award for students attending private colleges and universities to its current-year level.
In Transportation: The May Revision restores $1.3 billion in Proposition 42 funds to re-invest in roads, bridges, and infrastructure - marking the first year that the proposition has been fully funded since voters approved the measure in 2002.
In Health and Human Services: The May Revision includes funds to cover enrollment of 100,000 more children in the Healthy Families program above the January budget's estimated levels, and provides an additional $12 million to augment efforts to combat West Nile Virus.
In Corrections and Law Enforcement: The May Revision includes $75 million to continue funding for county juvenile justice crime prevention programs.
In Housing: The May Revision reflects an initiative to address chronic homelessness, directing $40 million in existing bond funds, $10 million in funds from the California Housing Finance Agency, $1 million General Fund, and $2.4 million in redirected Proposition 63 funds to create permanent housing with services targeted for veterans and the chronically mentally ill.
In Resources: The May Revision provides $10 million in additional resources to prepare for an anticipated heavy fire season - $5 million for the Department of Forestry to acquire 19 additional fire engines and $5 million for the Office of Emergency Services to acquire additional engines for local governments to use in mutual aid fire response.
In Reserve: The May Revision reflects a budget reserve of $1.4 billion - which includes a $900 million set-aside for refunds related to tax amnesty that are forecast to be due in the 2006-07 fiscal year.
Further details on the Governor's May Revision can be found at the California Department of Finance web site: http://www.dof.ca.gov
Linked below are lists of STIP and TCRP projects approved by the California Transportation Commission that may receive money with the full funding of Proposition 42 and a Vehicle License Fee Offset Fact Sheet.
State Transportation Improvement Program (STIP) List
Let's think about it.
Prior: 111 billion to spend with a shortfall of 9 billion. In other words, we were short 9 billion to pay our bills
Now: 115 billion to spend and plug a shortfall estimated to have narrowed to 4 billion. Now we are short 4 billion to pay our bills, but we have closed on over half the shortfall.
Please select one:
1. This is bad because I hate Arnie and everything Arnie does is bad bad bad bad bad.
2. This is bad because I hate California, and everything California does is bad bad bad bad bad.
3. I was using creative economics in my post.
4. I went to Devry.
All the more reason to question why he doesn't act like an (R)!
He ran as a fiscal conservative.
If the (R)s don't hold him accountable, who will?
You're barking up the wrong tree, Miss Heels.
Just because revenues are up doesn't mean we should increase spending.
If we hadn't increased the budget by $4,000,000,000,000.00 then the shortfall would be $0.00. We could start retiring part of the $15,000,000,000.00 in bonds we just issued to cover the deficit.
Arnie was sent to Sacramento with a mandate to cut spending... I supported him, I sent his campaign money, I walked a precinct for him... I would now like him to get serious with my money.
Why... ALL OF THE ABOVE, of course!!! (/dripping sarcasm!!!)
Oops, 3 too many 0's in the $4B number.
Hey! I'm bein serious here!!! Tell me and everybody else, no matter what kinda shoes they be wearin, what's bein done to help the Sierran Region help Cauleeforneeah!!!
Certainly! It is VERY bad news.
From the article:
"totaled $111.7 billion and aimed to balance the budget by closing a shortfall then estimated at about $9 billion. "This means Arnold proposed a budget of $111.7 billion instead of the $121 Billion that was on the Dems wish list. $121 Billion was not a budget, was not authorized, and represents nothing more than someone's estimated fantasy. By upping the budget to $115.7 Billion, Arnold has funded some of those fantasies.
His initial budget last year was $99 Billion, higher than anyone had imagined. And now we have a $116 Billion and you think this isn't bad news???? Next you'll tell me Arnold is a fiscal conservative!
>>I would like to see another $10 million for Humboldt county but I guess I'm just naturally greedy...
Everybody else seems to have gotten theirs... why should you be left out? ;-)
Are you serious? You're in too rural of an area! You don't have enough votes and bucks to protect your natural resources from the malignant city slickers!!! Besides Humboldt county couldn't possibly figure out how to properly spent that $10 million without the help of a GovernMental CONservacy, could it???
Why do I suspect that Arnie has Arthur Anderson doing the accounting?
There are no conservative politicians. They get their hands on our money and just HAVE to spend it. What would you do if you won the lottery? Give it back to the people who bought tickets? No. You would spend it!
Rep, Dem, doesn't matter. They all want to spend money on stuff that they THINK will do the little people who can't take care of themselves some good. After all, we are all just too dumb to take care of ourselves. It's obvious, since we aren't nearly as rich as they are.
I am gonna shut up, now. This will turn into a huge rant.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.