CALIFORNIA GOING BUST AGAIN!
(1)>>California Facing Record $68 Billion Deficit, Potential 'Fiscal Budget Emergency': Legislative Analyst For the latter part . READ my past Article from January 2023 . Where I warned that the California budget was NOT Fiscally Solvent .👉[ https://theun-politics.blogspot.com/search?q=California+deficit Anyone know how this compares to other states as a % of their overall budget? Obviously, $68B is a massive number, google is telling me it's 30% of their current slated budget? Does any other state even get to a deficit of 20%?] The nation's most populous state — with an economy that is SUPPOSEDLY the fifth largest in the world — has been struggling since last year because of the rising prices of most goods and services and how the U.S. government has been trying to control it. The money is already spent/allocated.The tax revenue isn't as high as expected. The State spent more in anticipation of tax revenue expected. For ONE thing (2)>>California Gov. Newsom while debating Florida Gov. DeSantis , he just made a public fool of himself , trying to compare Florida with California . Yep, the perfect Democratic Presidential backup candidate. Already knows how to spend more money than he takes in. Zero training required. While I don't like DeSantis . BUT the whole problem with Newsom is he is a careless fickle , who not to long ago was visiting China & touting California was the 5th largest economy . I have to say that California is cooked goose when it comes to it's spending practices Newsom Humiliated By Disastrous Budget Report One Week After Bragging About California's Economy . (3)>>Again and Again , California faces a budget crisis . Last year I remember seeing a lot of articles/headlines about a $100B surplus and now it has swung completely the opposite direction and now they are saying there is a budget deficit of $30B. Did something happen that caused this $130B swing in their budget? California economy is practically in a dismal state since the Covid Lock-Downs .A 97.5B surplus mathematically cannot morph into a 30B deficit, unless the original projection was reached by throwing darts blindfolded. Or…was it done by alumni of progressive studies where math is highly optional? This time its OVER 68 BILLION DOLLARS !?why it’s not considered a crisis ? The State of California is practically BANKRUPT . Trust me ,the state has no money . If you looks the previous deficits since the Covid year 2020 , the state just gave a blank check to it's services , departments . It's almost criminal in a way , that people in California pay huge taxes , they get screwed all the time . (4)>>I would say Gov. Newsom should just "resign" . No BULL SHIT.Ten Month's ago , Well we do, he knew as the Governor and it’s a $20 billion+ deficit that’s growing.He kept on spending with no strings attached.And while the analyst’s office also warned that the state reserves are unlikely to cover multiyear deficits” (projected at about $30 billion a year), some Democratic legislators still prefer using some savings to slashing key programs. If the State can't store away extra money as a buffer for years when tax income drops then it can't do long-term planning and has to resort to emergency measures to make up budget shortfalls. Not sure how you weren’t aware of that given it’s the subject .....but the spending of (4)>>Education increased making up half the state budget . A touchy subject . Talk about education . I used to work for public education for almost 33 years . I have seen times when the State Budget would be rosy one year and the next year it be a pile of crap . And the "drama" of what the state budget creates trickles up and down in the public schools with devastating consequences for students , teachers and everyone else that works there .They also will be forced to consider cuts to education funding — a move that would be widely unpopular, with the potential to dredge up labor tensions and force painful decisions at the local level during an election year. But the BULL SHIT CLOWNS that run the California government just seemed to skim that subject matter . I know one of the stated reasons for the deficit is due to delaying tax returns. Any idea if the tax returns that only recently got processed, are being counted in this deficit? Or could it possibly be reduced once all those are counted? HOWEVER where did 2 years of tax revenue just go? Was it the COSMIC COOKIE MONSTER that somehow just siphoned off 20 billion dollars ??? NOW I have to question the States "claim" that it has 34 billion in reserves ??? (5)>>Nothing in the California budget adds UP ?
NOTES AND COMMENTS :(1)>>California Facing Record $68 Billion Deficit, Potential 'Fiscal Budget Emergency': Legislative Analyst. That is the biggest deficit by dollars in state history, but previous deficits have been larger as a percentage of state spending. California's current budget tops $300 billion, the largest by far of any state. How it happened ? It was gross negligence on the part of Gov. Newsom . Way back , January 2023 , Newsom prepared a budget knowing fully that California was 20 billion in the hole . He did not authorized , or prioritize any deficit reductions , instead he increased spending by another 200 billion dollars , with less tax revenues coming in. Actually, California politicians do grasp volatility. That was demonstrated 11 months ago when Gov. Gavin Newsom proposed a 2023-24 budget that addressed what he said was a $22.5 billion deficit just eight months after he had boasted of a $97.5 billion surplus.“No other state in American history has ever experienced a surplus as large as this,” Newsom had bragged in May 2022, thus encouraging his fellow Democrats in the Legislature to sharply increase spending. It was a problem first noted by San Francisco’s budget office but nobody really took notice. Well tbf Gov Newsome warned about it last year or so, so it wasn’t unexpected.California has a highly progressive tax structure that is also highly volatile. In a good year it can mean a $100B surplus. In a bad year it can mean a $100B deficit. This isn't news.(2)>>California Gov. Newsom while debating Florida Gov. DeSantis , he just made a public fool of himself , trying to compare Florida with California . Last week’s Fox News debate between Ron DeSantis and Gavin Newsom revealed several inconvenient truths about California and Gavin Newsom. One is that California’s poorly designed economic policies have delivered record high housing costs and homelessness, high tax rates, high energy costs, and failing public schools, despite enormous school spending. Another is Newsom’s unwillingness—to the point of absurdity—to own any of those policy mistakes.There are so many other policy failures in California that never came up in the debate. Nearly one out of three Californians live in or near poverty. Buying a home is unattainable for nearly all Californians, which reflects Newsom’s failed promise to increase homebuilding in the state. Nearly one million Californians don’t have access to clean water, a problem that should be an obvious priority for the state to fix but that persists after five years of Newsom’s governorship.Many Californians are tired of Newsom. In a state that is totally dominated by the Democratic party, Newsom’s job approval has dropped to 43 percent, with just 18 percent approving strongly. It is obvious now that Newsom is looking to the national political stage. And Californians are now looking for a governor who can fix these policy failures. (3)>>Again and Again , California faces a budget crisis . California has a really bad record about balancing budgets . AS far as YOU can go back to 2003 , when the state had a deficit under then Gov. Gray Davis it was just peanuts if you compare with today's wreak of a state . Mind you , the state was in the hole for decades .Newsom’s economic analysts are not projecting a recession in the near future, but they noted the potential for one based on inflation and rising interest rates. With the state facing a significant budget deficit, federal COVID funding to schools set to dry up in 2024, and the need to help students make up for learning losses suffered during the pandemic, California’s schools and policymakers have their work cut out for them. California has been really broke , it's a high tax state that has been putting money into a its educational system more than it's infrastructure .A study by the California Policy Center in 2013 found that conservative estimates of total government debt — including city, county, and public school district debt — totaled nearly $850 billion. More realistic assumptions about future health care costs and the annual rate of return on the pension fund (4.5% instead of 5.5%) put the total debt over $1 trillion.Worse for Newsom, this turnaround does not reflect a national phenomenon. Gregg Abbott’s Texas and Ron DeSantis’s Florida have achieved large budget surpluses, with several red states even initiating tax cuts. If the situation does not change, the contrast could prove devastating to Newsom’s presidential ambitions as well as to President Joe Biden, whose policy agenda largely follows progressive California lines. (4)>>I would say Gov. Newsom should just "resign" . With the growing evidence of fiscal neglect , starting January 2023 the state under Newsom did not do any budget accommodations to a growing deficit except spotty shuffling of revenues that did not eliminate the already grown deficit from the "previous" 2 years. While we been told that the state had a surplus of 97 billion $$$ , that maybe not exactly truthful . The question of the state reserves can't explain the budget shortfalls of the last two years when revenues were dropping . In MAY we had a growing deficit 32 billion dollars , his revise did not call for cross the board cuts , instead he went ahead with a huge spending plan , was warned by the LAO about a potential economic disaster .In 2022, the stock market declined, which meant far less revenue from capital gains. This is how we went from a $75B surplus in 2021 to a $32B deficit in 2022.Note that this 'deficit' will have impact on local services like parks, police, fire, schools, roads, etc. This will only have a noticeable impact on state level services, like CSU/UC schools, state parks, high-speed rail, etc. Again , Newsom's office was vary aware of the impending doom , remember to flew to China while a deficit was just piling up .Never leave money on the table. As someone with the state, you need to ensure you can utilize the funding. Otherwise you will get less funding in the next fiscal year. (4)>>Education increased making up half the state budget. California spent about $128 billion on K–12 public education this fiscal year. This amount exceeds the entire budget of all states except New York and Texas and is roughly equal to the combined state budgets of Pennsylvania, Illinois, and Tennessee. The population of these states together is nearly 33 million, compared to California’s 39.2 million population. It's half of the entire state budget . In my line of thinking it's a catastrophic way set to the California education system into a trip wire bomb fiasco . Once the state is in a financial fiasco , it puts K-12 funding always at the chopping block first . It's not entirely saying that education is underfunded in the state , but there are huge wage discrepancies how teachers are paid and verses the high cost of living in the state . These huge expenditures have stalled major California infrastructure plans for decades .It's not how students are educated , but it's how the state government has allocated half of its it's budget to schools .(5)>>Nothing in the California budget adds UP ? Consider what Newsom and his partners in crime in the legislature did last year knowing that the state’s financial roller coaster would eventually start its predictable plunge.Trying to explain California’s $68 billion deficit versus Florida’s $22 billion surplus could have prompted Newsom to embark on political contortions that could have thrown his back out.The announcement California is staring down a record $68 billion deficit comes just 18 months after Gov. Gavin Newsom bragged the Golden State was sitting on a $97.5 billion surplus.A year after his surplus boasting, Newsom presented a 2023-24 budget that dealt with a projected $31.5 billion deficit. Since its passage in June, revenues have continued to fall below estimates, which means a continuing gap between income and outgo. Now the Golden State is now staring at a $68 billion shortfall because the gusher of tax revenue from soaking the rich has dried up.In plain English: Poof. Now, the surplus is gone and California is facing a sizable budget deficit. The fun is over. A Politico story captured the weeping and gnashing of teeth in Sacramento, as Democratic leaders vowed to protect every penny of spending from the budget ax. None of this should have been a surprise, given that “warning signs have been flashing for months.”
