Is California heading for a rebound ? The State revenue increase was treated with 'unexpected news' by the media press . I have a theory , so I am going to set here. I believe that the state has been receiving revenues for years from the taxes that we have paid , but all because of mismanagement , and obvious spending that is out of control some of the money as far as state intake of revenues has been misplaced some how . Basing that assumption of our taxation rate , sales tax , gas tax , parcel taxes , gaming taxes , tax , and more tax from property . There could be about a trillion dollars of money floating around if you where to count the last decade of California's overblown debt .

My second thought is , there is a great deal of hysteria created by the states failure on the budget . In regards to education spending . Many teachers were given pink slips all over the state based on 'speculation' how the Governor's May revise would turn out . I believe a lot of those teachers should get their job's back , and if any lay offs are to be made they should be done after the May revise . Unexpected revenue from TAXES. This isn't the first story on this issue. A few weeks ago, as returns came in a $2.something billion more came in than was expected. Now, more returns have been counted so the figure has risen. Probably a sign that CA isn't quite as dead as many would like to paint and that "people and businesses!" are not fleeing in the numbers so many have taken for granted.
Now that the state has 6 billion extra dollars . Let's see how it's put to good use.

California Budget: Unexpected State Revenue Reaches $6.6 Billion

State revenue has rocketed far beyond projections, providing a $6.6 billion windfall that Gov. Jerry Brown wants to use to boost education spending and help repair California's battered finances.

California’s economy is “on the mend,” driving revenue $6.6 billion higher than forecast through fiscal 2012, reducing the deficit of the most populous U.S. state and trimming the need for higher taxes, Governor Jerry Brown said.
The deficit estimate shrank to $9.6 billion from about $15.4 billion, Brown said in revising his budget proposal for the year that begins July 1. In addition to balancing the books, Brown said his plan will increase education funding, take aim at “gimmickry” that boosted debt to $34.7 billion over the past decade, and limit borrowing to reduce debt costs.
“This is not the time to delay or evade, but to put our finances in order,” Brown said today in a Sacramento press conference.
The 73-year-old Democrat, who pledged to fix the fiscal malfunctions that left California with the lowest credit rating of any state from Standard & Poor’s, previously sought a five- year extension on $11 billion in expiring income taxes, sales taxes and fees. Republicans blocked a referendum on the levies.
“They seem to be putting up front in this budget document the future payment obligations and highlighting the extent to which the state has borrowed,” said Gabriel Petek, senior director of credit market services at Standard & Poor’s in San Francisco. “The governor’s approach seems to be more structurally oriented and that could be favorable for the state’s credit.”

Limiting Debt Issuance

Brown’s budget calls for limiting the amount of general- obligation borrowing by California, the largest U.S. issuer of municipal bonds.
The state may sell a total of $4 billion of general- obligation debt in the fall and spring, as well as $2 billion of lease-revenue bonds, the state budget director, Ana Matosantos, told reporters at a briefing.
The extra yield that buyers want for 10-year bonds from California issuers compared with top-rated municipal debt rose to 116 basis points on May 13, from a one-year low of 107 on April 15. A basis point is 0.01 percentage point.
“Budget proposals don’t really impress the marketplace very much at this point,” said Bud Byrnes, the chief executive officer of Encino, California-based RH Investment Corp., which trades about $100 million par value in bonds each month. “We’ll take it seriously when and if something gets passed. In the meantime, traders tend to have a very short time horizon.”

Tax Extensions

California won’t need to extend a 0.25 percentage-point increase in personal income-tax rates until next year because of the better-than-expected revenue, Brown said. He also rescinded plans to scrap blight-fighting enterprise zones.
Brown’s revised budget relies on keeping in place a 1 percentage-point boost in the retail-sales levy, to 8.25 percent, and a 0.5 percentage point increase in auto registration fees to 1.15 percent of a vehicle’s value. It also seeks to extend a reduction of the annual child tax credit to $99 from $309. All were put in place temporarily in 2009 and are to expire by July 1.
Brown’s initial plan in January asked lawmakers to put those tax extensions directly before voters in June. His revised budget calls for lawmakers to extend the taxes and then ask voters in November to validate the move. Spending would be based on the higher revenue with a provision that triggers cuts if voters don’t go along.
Jim Nielsen, the top Republican on the Assembly budget committee, said he doesn’t expect Republicans to agree to the tax extensions. Brown would need at least four Republican lawmakers to consent. The governor said he’s in discussions with between four and 10 Republican lawmakers.

‘Spigot of Spending’

“As far as our caucus is concerned, tax increases are not something that we would agree to,” Nielsen said at a news conference today. “Raising taxes only continues the spigot of spending.”
California’s constitution requires lawmakers to approve a budget by June 15 and for the governor to sign it into law by July 1. A new law approved by voters in November allows the budget to be passed by a simple majority vote and strips lawmakers of their pay whenever a budget is late.

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There another 'story' that is sure to boil into a storm . Former Gov. Schwarzenegger fathered a 'Love child' with a live in House Keeper .If the Family Values thing needs to kick in , here is my take on this . First Remember John Edward's who ran for the highest office in the Land . Lucky for Edward's that he never did become Vice- President , he would have been impeached and John Kerry would have been disgraced as commander in chief . In Arnold s case we see that he has this child over ten years ago , which put him just about the time he entered politics and ran for Governor , yes there were stories of Arnold s urges , yet the right wing media worked hard to conceal , and to discredit most of the women who came forward with the accusations .
Right now it's all too late and the damage was done:

Insiders 'Not Surprised' By Arnold Schwarzenegger Love Child

By Hollie McKay

Published May 17, 2011

| FoxNews.com

Political insiders and former colleagues of former California Gov. Arnold Schwarzenegger expressed a variety of reactions to the news of Schwarzenegger's love child Tuesday, with several telling FOX411.com that the revelation did not come as a surprise.

Last week, Schwarzenegger and his wife Maria Shriver announced they were separating after 25 years of marriage. On Tuesday, he announced that he had fathered a child out of wedlock with a woman who worked for him for 20 years.

"There have been rumors swirling around for years, citing a number of incidents regarding Arnold Schwarzenegger's infidelity,” California-based publicist Angie Meyer, who works closely with the California GOP, told FOX411’s Pop Tarts. "This comes as a complete surprise to no one – especially those closest to the ex-Governor's innermost circles."

A Republican political insider on Capitol Hill concurred.

“So far, not much surprise here,” said our source.

However, according to another staffer who previously worked with the California Republican Party, many others were indeed shocked when news broke of the former governor’s illegitimate child.

“It’s a total surprise to me, I'm seeing some pretty cold reactions regarding this,” said the staffer.

And even in Hollywood, where extramarital affairs and sex scandals are the norm, some experts weren’t convinced that his acting career would recover.

“It’s outrageous. I’ve represented 58 academy award winners its one of the most outrageous scandals since Woody Allen in 1992. I think it’s even worse than that. It’s almost Shakespearean in its tragic capacity,” said veteran publicist Michael Levine, who first met the “Terminator” star 25 years ago. “I think his Hollywood career will be injured by it, because when you go to see one of his films, half of the people in the audience are women.”

Two of Schwarzenegger and Shriver's grown children also weighed in.

“Some days you feel like s**t, some days you want to quit and just be normal for a bit, yet i love my family till death do us apart,” his son Patrick, 17, wrote on the social networking site Twitter.

“This is definitely not easy but I appreciate your love and support as i begin to heal and move forward in life.I will always love my family,” daughter Katherine, 21, tweeted Tuesday afternoon.

Katherine Schwarzenegger recently wrote the book "Rock

The Un-Politics

Tuesday, May 17, 2011