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I admit I was wrong about the 2010-11 budget deficits. I have been saying it starts at $20 billion--I was wrong. The Legislative Analyst Office just issued a report showing that the "shortage" is actually $25.4 billion.
That means that in his years as Governor, Arnold has provided us with a minimum of $165.4 billion in deficits. That is his legacy.
"Our forecast of California’s General Fund revenues and expenditures shows that the state must address a budget problem of $25.4 billion between now and the time the Legislature enacts a 2011–12 state budget plan. The budget problem consists of a $6 billion projected deficit for 2010–11 and a $19 billion gap between projected revenues and spending in 2011–12.
2010–11 Deficit. We assume that the state will be unable to secure around $3.5 billion of budgeted federal funding in 2010–11. This assumption is a major contributor to the $6 billion year–end deficit we project for 2010–11. We also project higher–than–budgeted costs in prisons and several other programs. In addition, our forecast assumes that passage of Proposition 22 will prevent the state from achieving about $800 million of budgeted solutions in 2010–11."
The good news is that there is no way any tax increase could cover this. That means Jerry Brown will have to take a powersaw, not a knife, to the budget. Sadly, 2011-12 will be even worse! We will have higher unemployment due to AB 32, illegal aliens, union control of Sacramento, higher Workers Comp costs, higher health costs due to Obama, higher payroll tax costs (to pay back the $10 billion, so far, we have borrowed from the Feds to continue paying unemployment checks)
Between Arnold and his Democrat friends, I believe I will be right, that the State government will have an economic collapse by summer of 2011. What are your thoughts?
More...
That means that in his years as Governor, Arnold has provided us with a minimum of $165.4 billion in deficits. That is his legacy.
"Our forecast of California’s General Fund revenues and expenditures shows that the state must address a budget problem of $25.4 billion between now and the time the Legislature enacts a 2011–12 state budget plan. The budget problem consists of a $6 billion projected deficit for 2010–11 and a $19 billion gap between projected revenues and spending in 2011–12.
2010–11 Deficit. We assume that the state will be unable to secure around $3.5 billion of budgeted federal funding in 2010–11. This assumption is a major contributor to the $6 billion year–end deficit we project for 2010–11. We also project higher–than–budgeted costs in prisons and several other programs. In addition, our forecast assumes that passage of Proposition 22 will prevent the state from achieving about $800 million of budgeted solutions in 2010–11."
The good news is that there is no way any tax increase could cover this. That means Jerry Brown will have to take a powersaw, not a knife, to the budget. Sadly, 2011-12 will be even worse! We will have higher unemployment due to AB 32, illegal aliens, union control of Sacramento, higher Workers Comp costs, higher health costs due to Obama, higher payroll tax costs (to pay back the $10 billion, so far, we have borrowed from the Feds to continue paying unemployment checks)
Between Arnold and his Democrat friends, I believe I will be right, that the State government will have an economic collapse by summer of 2011. What are your thoughts?
More...