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Government has caused the Great California Depression.
"The current-year deficit, which comes as no surprise to Capitol observers, mostly stems from:
Phantom Budget Cuts. Legislators scored billions of spending reductions in prisons, Medi-Cal and elsewhere that were unlikely to occur.
Failure to Sell State Compensation Insurance Fund. The budget was balanced on the assumption that the state would sell the State Compensation Insurance Fund in the budget year for $1 billion. At the time, observers thought this was a leap of faith. It was ... and the budget-writers' prayers have not been answered.
Illegal Shift of Transportation Funds. The Legislature attempted to shift $800 million in local transportation funds to the state, but a court said that was illegal.
December 4, 2009
Increased School Spending. The Proposition 98 minimum funding guarantee was underestimated by $1 billion when the budget was adopted.
Shortfall in Tax Revenue. The infamous Rosy Scenario made her way into the budget, resulting in an overestimate of state tax revenue for 2009-10. The general fund revenue shortfall for the first four months of the fiscal year is $794 million. The legislative analyst pegs the revenue for the full year at only $496 million less than budgeted, which assumes that revenues will exceed estimates for the rest of the fiscal year."
The analyst does not discuss the cost to the budget and society of AB 32 as part of the problem. The analyst does not discuss the cost of union monopolies to the problem. The analyst does not talk about the phony budgets, followed by more borrowing as part of the problem.
The analyst report is totally incomplete. A waste of good trees and time. Until the analyst reports on ALL the causes of our Depression, we will stay in this fiscal mess. No way out.
More...
"The current-year deficit, which comes as no surprise to Capitol observers, mostly stems from:
Phantom Budget Cuts. Legislators scored billions of spending reductions in prisons, Medi-Cal and elsewhere that were unlikely to occur.
Failure to Sell State Compensation Insurance Fund. The budget was balanced on the assumption that the state would sell the State Compensation Insurance Fund in the budget year for $1 billion. At the time, observers thought this was a leap of faith. It was ... and the budget-writers' prayers have not been answered.
Illegal Shift of Transportation Funds. The Legislature attempted to shift $800 million in local transportation funds to the state, but a court said that was illegal.
December 4, 2009
Increased School Spending. The Proposition 98 minimum funding guarantee was underestimated by $1 billion when the budget was adopted.
Shortfall in Tax Revenue. The infamous Rosy Scenario made her way into the budget, resulting in an overestimate of state tax revenue for 2009-10. The general fund revenue shortfall for the first four months of the fiscal year is $794 million. The legislative analyst pegs the revenue for the full year at only $496 million less than budgeted, which assumes that revenues will exceed estimates for the rest of the fiscal year."
The analyst does not discuss the cost to the budget and society of AB 32 as part of the problem. The analyst does not discuss the cost of union monopolies to the problem. The analyst does not talk about the phony budgets, followed by more borrowing as part of the problem.
The analyst report is totally incomplete. A waste of good trees and time. Until the analyst reports on ALL the causes of our Depression, we will stay in this fiscal mess. No way out.
More...