Hell Freezes Over: Liberal Mecca California does the impossible: balances budget..

[LunarRay]

Is that really how they did it??


Yeah... That is a fantastic temporary fix, until everyone who is supporting the degenerates leave the state.

Ya don't suppose it was the degenerates what moved to Dallas do ya?

BTW, what or who are the degenerates?

 

[LunarRay]

People who piss into the wind have to move around sometimes, as the wind direction changes.

Some here seem to be advancing a theory of climatic indifference to 'tornadic' reality. They are all wet and assume it to be simply rain. I'm not sure if they are so scared that they wet their pants or failed to understand what goes around comes around...

 

[sactoking]

California is in better shape because the Democrats got a super majority. Republicans have f*cked the state over with things like prop. 13. Even the disaster of Enron and energy traders stealing 30 billion dollars out of the California economy that the Republicans refused to stop, can't happen with a super majority of Democrats.

Finally reasonable measures can be taken.

Just FYI- Prop 13 was a proposition (hence the name) meaning it was voted on by the people. It wasn't a "epublican thing".

Oh, and also, Prop 13 passed with an almost 2:1 majority, and passed in every county except Kern, Yolo, and San Francisco.

The vast majority of Californians wanted it, regardless of political affiliation.

 

[OneOfTheseDays]

Brown has being doing a good job so far. He's not driving an ideological right or left vision for the state, he's being a pragmatist which is really the only kind of governance that produces meaningful results.

Unwillingness to compromise is the single biggest threat to effective governance. It is also the reason why the Republican party will soon become a regional minority party permanently.

 

[Fern]

Hell Freezes Over: Liberal Mecca California does the impossible: balances budget.

From the linked article:

Brown’s budget predicts an $851 million surplus for the fiscal year that begins July 1. The blueprint, including a $1 billion reserve, increases general-fund spending by 5 percent to $97.6 billion. Schools will get an additional $2.7 billion.

I.e., it's a PREDICTION so let's wait and see what actually happens before getting too excited.

Fern

 

[DucatiMonster696]

AND runs a Surplus......http://www.bloomberg.com/news/2013-...us-proclaims-california-s-crisis-is-over.html

Gee - imagine if we could do this on a Federal level.....you know, raise taxes on everyone AND cut spending.........

If you believe that bullshit then you believed that the last budget passed was going to see hundreds of millions of dollars materialize based on the overly optimistic revenue projections of a recovering economy. Of which some of that budget's prediction hinged on the future Facebook IPO being hugely successful in bringing billions of tax revenue and thus averting the need for budget cuts which CA democrats refused to enact but they sure do know how to tax and spend.

Furthermore according to that Jerry Brown press release you shouldn't be paying attention to or factoring in the billions of dollars of unfunded pension liabilities as well as ignoring the increases in spending or the future cries for more taxes to be raised and levied when reality walks a different route.

But than again this is the real Jerry Brown being honest because he didn't have to "lie anymore" at the time.

http://www.youtube.com/watch?v=AIlzYD4tk78

 

[DucatiMonster696]

Wow, what a concept. Raising revenues to pay for what the people want. How could that possibly work?

It hasn't worked because you're commenting on someone's prediction that has not even materialized.

 

[Greenman]

I heard that part of the reason for the balanced budget was increased tax revenue from prop 30. Wasn't every penny of the prop 30 tax increase supposed to go to CA schools?

Edit: I also heard an interview with a couple of the republican members of the legislature, their take was that it was good budget and passing it will be a slam dunk.

 

[MooseNSquirrel]

:biggrin:

Silly little man, thinks that something you don't see often isn't alive and rampant.


No - 3 families living under the same roof is not an equivalency to tax all around.

Which is going to generate more revenue? 3 Families living under 1 roof with property tax going up? Or 3 Families living under 1 roof with sales tax going up? Let me know when you can determine the difference broceritops

You don't see drug deals often do you? So that means it doesn't exist right? It doesn't account for billions upon billions of dollars - noooooooooooooooo. :sneaky:


You silly little boy lulz.

Even when you buy groceries you are helping to pay property tax. Im not sure groceries are the best example either as in many places groceries are exempt from sales tax.

 

[theevilsharpie]

I heard that part of the reason for the balanced budget was increased tax revenue from prop 30. Wasn't every penny of the prop 30 tax increase supposed to go to CA schools?

I'm not sure, but even if it were, that would simply mean that the portion of the budget that isn't legally required to be spent on schools can be re-purposed for other things.

 

[MooseNSquirrel]

If you believe that bullshit then you believed that the last budget passed was going to see hundreds of millions of dollars materialize based on the overly optimistic revenue projections of a recovering economy. Of which some of that budget's prediction hinged on the future Facebook IPO being hugely successful in bringing billions of tax revenue and thus averting the need for budget cuts which CA democrats refused to enact but they sure do know how to tax and spend.

Furthermore according to that Jerry Brown press release you shouldn't be paying attention to or factoring in the billions of dollars of unfunded pension liabilities as well as ignoring the increases in spending or the future cries for more taxes to be raised and levied when reality walks a different route.

But than again this is the real Jerry Brown being honest because he didn't have to "lie anymore" at the time.

http://www.youtube.com/watch?v=AIlzYD4tk78

Wow that video just makes Jerry Brown even more awesome.

Heaven forbid all our elected officials be so honest and such realists.

He's the best Governor we could have hoped for.

Old, cranky, and not beholden to anyone.

 

[MooseNSquirrel]

Just FYI- Prop 13 was a proposition (hence the name) meaning it was voted on by the people. It wasn't a "epublican thing".

Oh, and also, Prop 13 passed with an almost 2:1 majority, and passed in every county except Kern, Yolo, and San Francisco.

The vast majority of Californians wanted it, regardless of political affiliation.

Prop 13 was put onto the ballot by anti-tax right wing groups.

What happens after an initiative is put on the ballot is an indication of 2 things:

1. Voters are too uninformed to make far reaching decisions on their own because they dont know the far reachign consequences of their decisions (much like people who favor politics over policy)

2. Direct Democracy is a disaster.

 

[Greenman]

Prop 13 was put onto the ballot by anti-tax right wing groups.

What happens after an initiative is put on the ballot is an indication of 2 things:

1. Voters are too uninformed to make far reaching decisions on their own because they dont know the far reachign consequences of their decisions (much like people who favor politics over policy)

2. Direct Democracy is a disaster.

1. In the case of prop 13, everyone that owned a home in California, and most that didn't, knew exactly what the consequences of prop 13 would be, a cap on out of control taxes. People were being taxed out of their homes. They were being taxed on value that only existed on paper. Most of those forced to sell were on fixed income, they couldn't afford the ever increasing tax burden on their property, they were forced out of their homes. That's not progressive thinking, that's a crime that had to be stopped.

2. I 100% agree with you. Direct democracy is based on the idea that you can increase a sum by adding zeros. Ten thousand stupid people won't make better decisions than one stupid person. Even worse than that, eventually, someone figures out that you can vote yourself anything you want.
The demise of civilization stems from the belief that government can give you what you're to lazy to work for.


Edit: I would have been forced out of my home in 2007 without prop 13. The tax burden would have increased my monthly housing cost by over 50%.

 

[EagleKeeper]

Any surplus that CA starts to see, will get rerouted to special projects/aid. Even if surplus is only projected., it will get earmarked for use.

 

[DucatiMonster696]

I heard that part of the reason for the balanced budget was increased tax revenue from prop 30. Wasn't every penny of the prop 30 tax increase supposed to go to CA schools?

Edit: I also heard an interview with a couple of the republican members of the legislature, their take was that it was good budget and passing it will be a slam dunk.

A large portion of that money is going to pay off the UC system's gamble with interest rate swaps and their bet on higher interest rates raising which never materialized.

http://www.sfgate.com/opinion/openf...nds-for-UC-will-go-to-Wall-Street-4031472.php

 

[DucatiMonster696]

Wow that video just makes Jerry Brown even more awesome.

Heaven forbid all our elected officials be so honest and such realists.

He's the best Governor we could have hoped for.

Old, cranky, and not beholden to anyone.

And this is why politics corrupts.

With an electorate as stupid politicians can count on lock-step partisan voted and still retain their positions of power while only offering the thinnest layers of accountability.

 

[Chris A]

This whole thing is just BS there is no way the 800 billion in unfunded retirement liabilities was covered with those tax increases. That was just the tip of the ice burg. I don't belive even one part of that story.

http://www.nationalreview.com/corner/315197/states-real-debt-burden-4-trillion-veronique-de-rugy#

 

[OCGuy]

Yea right.

 

[Wreckem]

This whole thing is just BS there is no way the 800 billion in unfunded retirement liabilities was covered with those tax increases. That was just the tip of the ice burg. I don't belive even one part of that story.

http://www.nationalreview.com/corner/315197/states-real-debt-burden-4-trillion-veronique-de-rugy#

That chart is state and local debt. States aren't responsible for local debt per se. Also, city and counties are responsible for their portion of public pension liabilities. This is why there are several cities in CA on the verge of bankruptcy.

I like the chart you posted. Everyone likes to paint Texas as a model of fiscal conservatism. Texas likes to claim it has "zero" state debt because the state constitution disallows deficits. In reality Texas is the third most debt riddled state. Technically its true the state govt of Texas only has around $50million in debt. Local govts, county govts, special districts, school districts, etc. make up all of Texas debt on that chart. None the less Texas has a high debt burden, all while ranking near last in most major categories. Texas does not have an ideal model for fiscal anything.

 

[Atreus21]

CA's tax revenue falls 10.8% below budget projections, but the article is from December referencing November's numbers. And the OPs was written in January. Also, would November's tax revenue have been impacted by the recently passed tax increase from prop 30?

http://www.oc-breeze.com/2012/12/07...es-10-8-below-budget-projections-in-november/

State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in November 2012, showing total revenues were $806.8 million below (-10.8 percent) projections contained in the 2012-13 State budget.

“November’s disappointing revenues stand in stark contrast to recent news that California is leading the nation in job growth, has significantly improved its cash liquidity to pay bills, and even long-distressed home values are starting to inch upward,” said Chiang. “This serves as a sobering reminder that, while the economy is expanding, it is doing so at a slow and uneven pace that will require the State to exercise care and discipline in how its fiscal affairs are managed in the coming year.”

Personal income taxes in the month of November were down $842.5 million (-19.0 percent). Some of the tax revenue associated with Facebook shares came in during the month of October, while budget planners had projected receiving those funds in November.

Corporate taxes were down for the month, coming in $187.8 million below (-213.4 percent) projections. A portion of this drop was due to higher than expected corporate tax refunds going out in the month of November. Totals for sales taxes were up $99 million (3.8 percent).

The State ended the last fiscal year with a cash deficit of $9.6 billion. As of November 30, that cash deficit totaled $24.9 billion and is being covered with $14.9 billion of internal borrowing (temporary loans from special funds), and $10 billion of external borrowing.

 

[momeNt]

Cannot run a surplus at a federal level without banks really ramping up their current leverage ratios. Deficits at the federal level create money, and surpluses destroy money, so without a corresponding increase or decrease in banks money creation (lending leverage), you run the risk of destroying the total money supply and beginning a deflationary spiral.

 

[marincounty]

A large portion of that money is going to pay off the UC system's gamble with interest rate swaps and their bet on higher interest rates raising which never materialized.

http://www.sfgate.com/opinion/openf...nds-for-UC-will-go-to-Wall-Street-4031472.php

While the financial decisions by UC were stupid, the loss of support by the state is a far larger problem.

UC’s share of the state budget has declined dramatically over the last decades. In 1980-81, UC received 5.09 percent of the state’s general funds. In 2011-12, UC’s share dropped to 2.76 percent.

As state support has declined, the student share of their education costs has grown. Since 1990, the state’s contribution to educating each UC student has dropped more than 50 percent.

In 1990, the state funded 78 percent of the total cost of education per student. Today, the state funds 39 percent. As state support has declined, the students’ share of their education costs, net of financial aid, has more than tripled, from 13 percent to 49 percent.

http://budget.universityofcalifornia.edu/?page_id=1120