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If you think the recent, July, budget will save the State, wake up. Just a couple of weeks after the deal, the State was already in deficit by $16.5 billion, according to the State Controller.
To pay off the IOU's the State Controller is not using revenues--he borrowed another $1.5 billion from Wall Street--in other words, he used a new credit card to pay off an old credit card, while paying interest on both.
How bad is it? "The $200 billion in state debt includes about $35 billion in budget related liabilities -- read this as budget tricks used to paper over the deficit; about $69 billion in bond debt that must be repaid from
the general fund; and more than $100 billion in unfunded liabilities for government employee pensions and health care."
We have yet to see the worst of the government fiscal crisis--by Thanksgiving we will be deeper in trouble than ever before.
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To pay off the IOU's the State Controller is not using revenues--he borrowed another $1.5 billion from Wall Street--in other words, he used a new credit card to pay off an old credit card, while paying interest on both.
How bad is it? "The $200 billion in state debt includes about $35 billion in budget related liabilities -- read this as budget tricks used to paper over the deficit; about $69 billion in bond debt that must be repaid from
the general fund; and more than $100 billion in unfunded liabilities for government employee pensions and health care."
We have yet to see the worst of the government fiscal crisis--by Thanksgiving we will be deeper in trouble than ever before.
More...