California shows how to balance budget

[Oldguy]

California, the favorite whipping boy for some Nutter's, is showing how to move from billions in deficit spending to a balanced budget with the prospect of surpluses in the near future. And that in just 2 years.

How did Gov. Brown and the Democrat-controlled legislature do it so fast? Spending cuts, higher taxes and an improved economy, a three-pronged attack on the deficit. Unlike the mantra of the right which advocates only cuts in spending, the Governor and the Legislature realized it takes much more than that to produce a healthy economy and budget.

Can California be a template for Washington? Not so long as the Nutter's in the House cling to their Grover Norquist pledge.

http://www.nytimes.com/2013/01/11/u....html?nl=todaysheadlines&emc=edit_th_20130111

Bullshit Oldguy. This budget makes the massively optimistic assumption that the recent tax rate hike will result in a huge increase in tax revenues. That has yet to be proven and as history shows, the exact opposite is often the case.

The ACTUAL budget report states "The state’s budget remains balanced only by a narrow margin. The 2012 Budget Act assumed and spent the revenue provided by Proposition 30." And if that revenue doesn't materialize?

The budget also ASSUMES a very rosy picture of economic growth, which is FAR from assured. It also ASSUMES very low interest rates to continue, which may or may not be the case.

The budget also does not account how to pay for the deficit in the state’s Unemployment nsurance Fund and the more than $100 billion in unfunded liabilities in retiree health and pension systems. That ain't going away!

Bottom line, this is an extremely optimistic budget that has yet to be proven. When California ACTUALLY balances a budget, you get back to us.

EVERY budget must be based upon assumptions because the future can't be known. Even the Ryan plan is based upon assumptions which may, or may not, be valid.

 

[Oldguy]

My wife and I still own a home in California (Yucca Valley) and now that the Dems have a Super Majority there is talk about repealing Prop 13 which limited Property taxes to 1% of home value. If tax rates go up I'm just gonna' put that on the Renters (Marine family from nearby 29 Palms) just like I did with the "Out of State Homeowner Tax" that California levied on me a few years ago.

My solution to States Budget Problems is this:

Gather all the Taxes that the Federal Gov't takes from workers paychecks and send that to the State Capitol. The State then uses ALL THAT MONEY to balance that years budget and whatever other bills are due then sends the remainder to Washington.

Budget Deficits dry up overnight.

There's no more Pork Barrel Corruption coming from Washington because the money STAYS WHERE IT IS NEEDED: IN THE STATES! Otherwise the Gov't is gonna' spend it on Welfare for Illegal Aliens and Drone Strikes in Pakistan. Who wants that?

The States then get their power back from a corrupt US Central Gov't.

Oh, great idea! Let's balance the state budgets on the back of the federal government and let IT go broke.

What a wonderful plan. What could go wrong with that?

 

[eflatminor]

California, the favorite whipping boy for some Nutter's, is showing how to move from billions in deficit spending to a balanced budget with the prospect of surpluses in the near future. And that in just 2 years.

How did Gov. Brown and the Democrat-controlled legislature do it so fast? Spending cuts, higher taxes and an improved economy, a three-pronged attack on the deficit. Unlike the mantra of the right which advocates only cuts in spending, the Governor and the Legislature realized it takes much more than that to produce a healthy economy and budget.

Can California be a template for Washington? Not so long as the Nutter's in the House cling to their Grover Norquist pledge.

http://www.nytimes.com/2013/01/11/u....html?nl=todaysheadlines&emc=edit_th_20130111

Bullshit Oldguy. This budget makes the massively optimistic assumption that the recent tax rate hike will result in a huge increase in tax revenues. That has yet to be proven and as history shows, the exact opposite is often the case.

The ACTUAL budget report states "The state’s budget remains balanced only by a narrow margin. The 2012 Budget Act assumed and spent the revenue provided by Proposition 30." And if that revenue doesn't materialize?

The budget also ASSUMES a very rosy picture of economic growth, which is FAR from assured. It also ASSUMES very low interest rates to continue, which may or may not be the case.

The budget also does not account how to pay for the deficit in the state’s Unemployment nsurance Fund and the more than $100 billion in unfunded liabilities in retiree health and pension systems. That ain't going away!

Bottom line, this is an extremely optimistic budget that has yet to be proven. When California ACTUALLY balances a budget, you get back to us.

EVERY budget must be based upon assumptions because the future can't be known. Even the Ryan plan is based upon assumptions which may, or may not, be valid.

Agreed. Time will tell if Brown's extremely optimistic projections are realized.

 

[Oldguy]

PROOVE your assertion with FACTS assholes

See what happens shortly after Bush tax cuts went into effect in late 2001?

Now, pay attention to what happened in 2007 when the GOP lost control of Congress.

Wow! What a surprise! Revenue fell as the recession deepened.

Gee...who woulda guessed that might happen?

 

[Avorysuds]

Would it be possible to get some specifics on what the new tax rates will be as well as what where the cuts will be and for how much? Also how much they attribute the growth in the economy.

I mean, I could balance an impossible to balance budget with a projection, then when you see how I did it you LOL@ME~

 

[Avorysuds]

PROOVE your assertion with FACTS assholes

See what happens shortly after Bush tax cuts went into effect in late 2001?

Now, pay attention to what happened in 2007 when the GOP lost control of Congress.

Wow! What a surprise! Revenue fell as the recession deepened.

Gee...who woulda guessed that might happen?

That was before the recession, I remember because I was alive... Either way, to blame the dems or just the reps for the recession makes one look stupid.

 

[Claudette]

My state has a balenced budget does yours?

LMAO Not according to this.

http://www.nytimes.com/2012/09/21/us/california-debt-higher-than-earlier-estimates.html?_r=0

According to this for 2012 Cali is 28 BILLIOIN IN DEBT.

California Debt Higher Than Earlier Estimates, a Task Force Reports

By MARY WILLIAMS WALSH

Published: September 20, 2012



from your link.

Your link is MONTHS old asshole

Oh and like Cali is solvent between those months and now??

Your an idiot. A biased fucking idiot.

You can blame your party, the Dems, who have run Cali into the ground, for the state your State is in.

I repeat. Your a fucking moron.

 

[Zander]

California, the favorite whipping boy for some Nutter's, is showing how to move from billions in deficit spending to a balanced budget with the prospect of surpluses in the near future. And that in just 2 years.

How did Gov. Brown and the Democrat-controlled legislature do it so fast? Spending cuts, higher taxes and an improved economy, a three-pronged attack on the deficit. Unlike the mantra of the right which advocates only cuts in spending, the Governor and the Legislature realized it takes much more than that to produce a healthy economy and budget.

Can California be a template for Washington? Not so long as the Nutter's in the House cling to their Grover Norquist pledge.

http://www.nytimes.com/2013/01/11/u....html?nl=todaysheadlines&emc=edit_th_20130111

Bless the Governor's heart!
I live in California.
The deficit is not gone.
Unemployment is at 9.8%
Police and Fire are cut to the bone with more layoffs in the future.
UNFUNDED liabilities, the white elephant in the room, are not funded.
Even the Kings are looking to be bought!

I think Dear Jerry is smoking again.

Sometimes you can read something and the sheer magnitude of the lie is jaw dropping. That's what the NY Times article is. I too live in California. Brown and the Times supposes that they can say something in New York and no one in California will ever see it. The deficit is not gone. It is larger than ever.

Unemployment is getting higher because more and more companies are leaving the state. Police and fire departments are cut to the bone for two reasons, one is that the state is so broke, it is taking money from cities (that pay police and firefighters) leaving them to struggle with their own lavish union benefits to public service workers. Two cities have already declared bankruptcy, Stockton and San Bernardino.

California has "saved" money by releasing prisoners into the streets. One got early release, and in two hours robbed a bank and was back in custody.

Brown has three tax increases passed simultaneously because those who receive public benefits far, far, outnumber the pitiful few still paying taxes.

In a grab for whatever it can get, the state passed over 800 new laws that took effect January 1 in order to get a few pennies by fines still left after taxes.

Of all the lies, probably the most in your face is that California's economy has improved. Not only is Brown still smoking, but someone should test him for Alzheimers. California is broke. The cities in California are broke.

Sadly, this is true. Moonbeam has made a few good moves and hopefully the state will exercise more fiscal restraint going forward (extremely doubtful with the Democrat legislature that got us in this mess to begin with).

The biggest problem is the high tax burden and regulatory nonsense this state puts employers through.

 

[Oldguy]

Would it be possible to get some specifics on what the new tax rates will be as well as what where the cuts will be and for how much? Also how much they attribute the growth in the economy.

I mean, I could balance an impossible to balance budget with a projection, then when you see how I did it you LOL@ME~

Here's the Governor's projections about revenue:

http://www.ebudget.ca.gov/pdf/BudgetSummary/RevenueEstimates.pdf


In fact, here's his whole budget proposal:

http://www.ebudget.ca.gov/BudgetSummary/BSS/BSS.html

 

[mjollnir]

LMAO Not according to this.

http://www.nytimes.com/2012/09/21/us/california-debt-higher-than-earlier-estimates.html?_r=0

According to this for 2012 Cali is 28 BILLIOIN IN DEBT.

California Debt Higher Than Earlier Estimates, a Task Force Reports

By MARY WILLIAMS WALSH

Published: September 20, 2012



from your link.

Your link is MONTHS old asshole

Oh and like Cali is solvent between those months and now??

Your an idiot. A biased fucking idiot.

You can blame your party, the Dems, who have run Cali into the ground, for the state your State is in.

I repeat. Your a fucking moron.

Actually, quite a few things ran Cali into the ground, Prop 13 included, and much of it involved republicans.

Please be less fucking stupid.

 

[Seawytch]

Well, isn't that special......I guess that makes up for the state now losing one of it's biggest employers, Chevron, who's pulling up stakes and fleeing this loony bin.

And now another huge employer, Intel, is chirping about fleeing this loony bin.

You might want to check your facts. Chevron is still headquartered in San Ramon. The moved 800, mostly technical positions, to Houston.

Not For long.

Which is a statement with no basis in fact, just speculation.

 

[Claudette]

California Debt Higher Than Earlier Estimates, a Task Force Reports

By MARY WILLIAMS WALSH

Published: September 20, 2012



from your link.

Your link is MONTHS old asshole

Oh and like Cali is solvent between those months and now??

Your an idiot. A biased fucking idiot.

You can blame your party, the Dems, who have run Cali into the ground, for the state your State is in.

I repeat. Your a fucking moron.

Actually, quite a few things ran Cali into the ground, Prop 13 included, and much of it involved republicans.

Please be less fucking stupid.

What party has run the State just about forever??

What party is the majority in the legislature and has been since forever??

Try not to be so fucking stupid.

 

[MeBelle]

California, the favorite whipping boy for some Nutter's, is showing how to move from billions in deficit spending to a balanced budget with the prospect of surpluses in the near future. And that in just 2 years.

How did Gov. Brown and the Democrat-controlled legislature do it so fast? Spending cuts, higher taxes and an improved economy, a three-pronged attack on the deficit. Unlike the mantra of the right which advocates only cuts in spending, the Governor and the Legislature realized it takes much more than that to produce a healthy economy and budget.

Can California be a template for Washington? Not so long as the Nutter's in the House cling to their Grover Norquist pledge.

http://www.nytimes.com/2013/01/11/u....html?nl=todaysheadlines&emc=edit_th_20130111

Bless the Governor's heart!
I live in California.
The deficit is not gone.
Unemployment is at 9.8%
Police and Fire are cut to the bone with more layoffs in the future.
UNFUNDED liabilities, the white elephant in the room, are not funded.
Even the Kings are looking to be bought!

I think Dear Jerry is smoking again.

The deficit is not gone, it is not growing it is shrinking. Hiring is up, but the number of UE may remain the same because as you properly point out first responders are not being replaced and many are retiring early. Pension reform is in the works and many city and county employees are leaving early because the generous retirements will become a thing of the past and the workload has vastly increased due to manpower shortages.

From the OPs link:
“The deficit is gone,” Mr. Brown proclaimed, standing in front of an array of that-was-then and this-is-now charts that illustrated what he said were dramatic changes in California’s fortunes.

Pension reform may be in the works, it is still a huge unfunded liability.
The City I live in , our Chief LEO retired @ the top of the bargaining table. He retires @ age 50. He retires with a pension of $125k per year and lifetime HC benefits for him and family. Say he lives for another 25 years. That unfunded liability is HUGE for a City my size! So pretend, as of tomorrow, there were zero new labor contracts as we know them now. It still leaves our state in the hole for 30+ years.

I wouldn't worry about the Kings, you can always come to The Bay and watch the Warriors; Sacto has always been a "Triple A" town in terms of sports and restaurants. In fact the Warriors will soon be playing on the Embarcadero in The City and you can see good basketball, a real waterfront and five-star restaurants.

^^^ deal, if you will be my tour guide !!

 

[MeBelle]

California, the favorite whipping boy for some Nutter's, is showing how to move from billions in deficit spending to a balanced budget with the prospect of surpluses in the near future. And that in just 2 years.

How did Gov. Brown and the Democrat-controlled legislature do it so fast? Spending cuts, higher taxes and an improved economy, a three-pronged attack on the deficit. Unlike the mantra of the right which advocates only cuts in spending, the Governor and the Legislature realized it takes much more than that to produce a healthy economy and budget.

Can California be a template for Washington? Not so long as the Nutter's in the House cling to their Grover Norquist pledge.

http://www.nytimes.com/2013/01/11/u....html?nl=todaysheadlines&emc=edit_th_20130111

Bless the Governor's heart!
I live in California.
The deficit is not gone.
Unemployment is at 9.8%
Police and Fire are cut to the bone with more layoffs in the future.
UNFUNDED liabilities, the white elephant in the room, are not funded.
Even the Kings are looking to be bought!

I think Dear Jerry is smoking again.

You remind me of all the cons who SCREAMED about losing services after they voted for prop 13.

You want government dead remember

Don't put words in my mouth and don't put a label on me.
Will you be happy when Prop 13 is repealed and you must pay higher taxes on your three houses, yet find you can't rent them out anymore because smart people will be buying their own homes in order to use the property tax as a deduction?

 

[mjollnir]

Oh and like Cali is solvent between those months and now??

Your an idiot. A biased fucking idiot.

You can blame your party, the Dems, who have run Cali into the ground, for the state your State is in.

I repeat. Your a fucking moron.

Actually, quite a few things ran Cali into the ground, Prop 13 included, and much of it involved republicans.

Please be less fucking stupid.

What party has run the State just about forever??

What party is the majority in the legislature and has been since forever??

Try not to be so fucking stupid.

What party which up until the last election cycle could effectively block almost any legislation as a minority party?

Please pull your head out of your rather enormous ass and actually try to know what you're braying about before braying.

 

[MeBelle]

California Governor's budget has surprise: a surplus - US news - Environment | NBC News

Brown's budget plan projects $98.5 billion in revenues and transfers and plans spending of $97.7 billion, according to the proposal published on the state Department of Finance website.

That would leave a surplus of $851 million, in addition to a projected $785 million surplus for the current fiscal year, which ends in June, allowing the state to put $1 billion toward a rainy day fund. As recently as November, the state budget watchdog, the Legislative Analyst's Office, projected a $1.9 billion gap.

And does not address unfunded liabilities.

State's pension liability tops $500 billion, Stanford study finds | California Watch
Reform by the ounce, unfunded pension debt by the pound | EdSource Today

Guess who gets to make up the difference...you, I, my children and my grandchildren.
In the form of more taxes.

 

[Toro]

1. These are projections, not actual results. Wait until there are results.

2. All the empirical evidence in the US is that raising income taxes doesn't decrease revenue. That idea is discredited. It has a negative marginal effect but not a negative absolute effect.

3. The highest marginal income tax rate will become 57%. That will drive economic activity out of the state.

 

[percysunshine]

“The deficit is gone,” Mr. Brown proclaimed,"

Captain Moonbeam has spoken....the tides will recede, and the unicorns will florish...

 

[MeBelle]

My state has a balenced budget does yours?

LMAO Not according to this.

http://www.nytimes.com/2012/09/21/us/california-debt-higher-than-earlier-estimates.html?_r=0

According to this for 2012 Cali is 28 BILLIOIN IN DEBT.

California Debt Higher Than Earlier Estimates, a Task Force Reports

By MARY WILLIAMS WALSH

Published: September 20, 2012 from your link.

Your link is MONTHS old asshole

Four months is OLD???

Directors of the State Budget Crisis Task Force said their researchers had found a lot of other debts that did not turn up in California’s official tally. Much of it involved irrevocable promises to provide pensions to public workers, health care for retirees, the cost of delayed highway maintenance and an estimated $40 billion bill to bring drinking water up to federal standards.

They also pointed out many of the same unpaid bills from previous years that the governor had brought to light, like $8 billion in delayed payments to schools and community colleges, and $250 million that was raided from a fund dedicated to transportation and treated as revenue.

The task force estimated that the burden of debt totaled at least $167 billion and as much as $335 billion. Its members warned that the off-the-books debts tended to grow over time, so that even if Mr. Brown should succeed in pushing through his tax increase, gaining an additional $50 billion over the next seven years, the wall of debt would still be there, casting its shadow over the state.

 

[Mac1958]

.

I remain amazed at how many people don't understand the difference between "your" and "you're".

At least they provide us with some humor, when they question the intelligence of others.

.