California's deficit expected to grow despite revenue from better economy

[Judi Lynn]

California's deficit expected to grow despite revenue from better economy

TOM CHORNEAU, Associated Press Writer Friday, November 14, 2003


(11-14) 19:45 PST SACRAMENTO, Calif. (AP) --

California's budget deficit will likely top $10 billion next year, up $2 billion from previous projections, despite revenue from an improving economy, an advisory agency said Friday.

The shortfall might grow an additional $4 billion if Gov.-elect Arnold Schwarzenegger fulfills a campaign pledge to roll back a tripling of the car tax.

According to the Legislative Analyst's Office, which advises state lawmakers on fiscal issues, tax receipts are projected to increase by as much as $2.2 billion for the next seven months, but will be more than offset by spending on public health programs, prison inmates and other services.

But John Cogan, a key adviser to Schwarzenegger, said Friday the state's budget crisis can be solved by borrowing as much as $20 billion and imposing spending limits on all departments with the possible exception of education. (snip/...)

http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/14/national1902EST0756.DTL

[madrchsod]

1. the bbc reported this

on wednesday.this is just now being reported in california?

[The Zanti Regent]

5. Guess where 9 Billion $ for us AIN'T coming from

...That's right, Arnold is letting ENRON off the hook.

Which is what he, Riordan, Lay and Millken planned all along...

[mw]

2. I say we give Arnold 90 days to fix everything, or recall him

That's 50% more time than Repukes gave to Davis after Davis was elected.

[The Zanti Regent]

6. Oh no, we have to let all those women hit him with Paula Jones lawsuits!

I want him hit with HUNDREDS of lawsuits from women he groped! Make him TOTALLY IMPOTENT!!!!!!!

IT'S PAYBACK TIME!

[leesa]

9. Such a waste of money...private encounters can't be proved.

[The Zanti Regent]

11. But Nazi Republicans say they can!

Don't you remember how the Nazi Republicans with their Presstitutes lied any lie about Bill Clinton's Penis???????

[realFedUp]

10. It could practically be a class action suit

.

[Don_G]

3. Another Idiot

Trying to borrow his way out of debt...Real bright Arnie!

[SodoffBush]

4. with the "possible" exception of education

I doubt that.

The Bushies want to do damage to the NEA and the American Federation of State, County and Municipal Employees. They're the top democratic campaign contributors. The best way to damage them is to cut their funding.

http://www.opensecrets.org/orgs/index.asp

[recidivist]

7. One way out is a budget freeze.

As I understand it, in case of a failure to pass a budget, the default option in California is an across the board freeze. That's not the end of the world by any means. In the private sector, people lose their jobs if their companies go broke. It wouldn't kill California public employees to do without raises for two or three years.

Start with a freeze and then shift money to critical priorities on the basis of a dollar-for-dollar offset from other functions.

P.S. I'm not averse to raising taxes in California, as long as they're the right taxes. I'd be for a hefty gasoline tax to penalize sprawl and gas guzzlers. Of course, neither Party will touch that with a ten foot pole. What California CAN'T afford is higher business taxes because they're already leaking companies and jobs to surrounding states and overseas.

[NashVegas]

8. But But What Happened to the 26 Billion?

..