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As good as this article is, it still does not give a truthful appraisal of the State budget problems. The article says the deficit could rise to $21 billion. Actually, with unpaid lost lawsuits, the $7.4 billion deficit of the Unemployment Insurance Fund, unsold assets counted in the budget, the REAL deficit, as of December 4, 2009 is $36 billion, and growing.
"This means that Californias legislature, having already made cuts that exceed the entire budget of many smaller states, must deal with another gap of $21 billion in the coming months. This is larger than, for example, Californias entire spending on prisons and higher education combined. Lest legislators be tempted to resort to temporary accounting tricks, Mr Taylor also warns that revenues are likely to fall below expenditures by about $20 billion a year for the foreseeable future."
The Great California Depression continues, and the $143 billion tax increase due to AB 32, will be the final death blow.
More...
"This means that Californias legislature, having already made cuts that exceed the entire budget of many smaller states, must deal with another gap of $21 billion in the coming months. This is larger than, for example, Californias entire spending on prisons and higher education combined. Lest legislators be tempted to resort to temporary accounting tricks, Mr Taylor also warns that revenues are likely to fall below expenditures by about $20 billion a year for the foreseeable future."
The Great California Depression continues, and the $143 billion tax increase due to AB 32, will be the final death blow.
More...