Tweet
During the Recall in 2003 Arnold reminded everyone he "was a student of Dr.Milton Friedman". What he did not mention is that he failed as a Friedman student.
Look at the results!
"The good news is that on 9 October, California (A1 stable) finally enacted a budget for fiscal year 2011. The bad news is that the budget relies heavily on one-time measures, optimistic revenue assumptions, and the receipt of funds, some of which may not materialize. As a result, it is likely that the state will face a large mid-year budgetary shortfall later this year and that the budget gap for next year will be significant, both of which will place continued credit pressure on the state.
The budget for fiscal year 2011, which solved a gap of almost $19 billion, assumes General Fund revenues and transfers of $94 billion and expenditures of $86.5 billion. As the General Fund started the year with a negative balance of almost $5 billion, however, the budget includes a reserve fund of approximately $1.3 billion."
How was the $19 billion gap solved? Well, the NEW budget includes a deficit of $9.5 billion and we have to borrow $10 billion.
What the article omits is that our deficit was NOT $19 billion--it was north of $40 billion.
If they lied about the real deficit, then the budget is a lie--which is why by mid-2011 California government will have a fiscal collapse.
You can be assured that the new Governor will constantly remind us of how bad Arnold was as Governor.
More...
Look at the results!
"The good news is that on 9 October, California (A1 stable) finally enacted a budget for fiscal year 2011. The bad news is that the budget relies heavily on one-time measures, optimistic revenue assumptions, and the receipt of funds, some of which may not materialize. As a result, it is likely that the state will face a large mid-year budgetary shortfall later this year and that the budget gap for next year will be significant, both of which will place continued credit pressure on the state.
The budget for fiscal year 2011, which solved a gap of almost $19 billion, assumes General Fund revenues and transfers of $94 billion and expenditures of $86.5 billion. As the General Fund started the year with a negative balance of almost $5 billion, however, the budget includes a reserve fund of approximately $1.3 billion."
How was the $19 billion gap solved? Well, the NEW budget includes a deficit of $9.5 billion and we have to borrow $10 billion.
What the article omits is that our deficit was NOT $19 billion--it was north of $40 billion.
If they lied about the real deficit, then the budget is a lie--which is why by mid-2011 California government will have a fiscal collapse.
You can be assured that the new Governor will constantly remind us of how bad Arnold was as Governor.
More...