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Wed Nov 14, 2012, 05:35 PM

California's deficit shrinks to $1.9 billion!! That's tiny for CA. Was 25 Billion.

California's deficit shrinks to $1.9 billion

After years of double-digit deficits, California faces just a $1.9 billion budget gap next year, according to the Legislative Analyst's Office.

The annual fiscal outlook released by the analyst Wednesday showed a "dramatically smaller budget problem" than the state has faced in recent years, according to the report. One year ago, the analyst pegged the problem at $13 billion, and it was $25.4 billion the year before that.

The report cites the improving state economy, prior budget cuts and the passage of the Proposition 30 tax measure as the factors for the sharp improvement. By 2014, the state will have a surplus of $1 billion and that will grow to more than $9 billion by 2017, according to the fiscal outlook.

Driving the budget deficit are lower revenues than expected, combined with higher spending because the dissolution redevelopment agencies has resulted in less money than expected.

Read more: http://www.sfgate.com/bayarea/article/California-s-deficit-shrinks-to-1-9-billion-4037701.php#ixzz2CEsri74o

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Reply California's deficit shrinks to $1.9 billion!! That's tiny for CA. Was 25 Billion. (Original post)
Liberal_in_LA Nov 2012 OP
denverbill Nov 2012 #1
Liberal_in_LA Nov 2012 #9
meti57b Nov 2012 #2
kestrel91316 Nov 2012 #3
GiaGiovanni Nov 2012 #4
nadinbrzezinski Nov 2012 #5
robinlynne Nov 2012 #22
stopbush Nov 2012 #6
Sekhmets Daughter Nov 2012 #7
tblue37 Nov 2012 #8
Arugula Latte Nov 2012 #10
Initech Nov 2012 #11
hughee99 Nov 2012 #13
Melinda Nov 2012 #17
hughee99 Nov 2012 #18
Melinda Nov 2012 #19
robinlynne Nov 2012 #23
Barack_America Nov 2012 #12
dem4ward Nov 2012 #14
joeunderdog Nov 2012 #15
Selatius Nov 2012 #16
DCBob Nov 2012 #20
CheapShotArtist Nov 2012 #21

Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 05:40 PM

1. Hey I don't think that's any laughing matter.

I think it's pretty impressive.

I'd love it if the US budget deficit was 1/10th it's highest level. That's lower than even Clinton's last year.

I'd say it is cause to celebrate.

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Response to denverbill (Reply #1)

Wed Nov 14, 2012, 06:59 PM

9. laughing with joy. Repubs here want CA to go under because it's a liberal state.

Righties on the radio always soothe their hurt feelings (over election losses) by saying that CA is going under due to lib rule.

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 06:01 PM

2. Extremely COOL!!!

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 06:03 PM

3. Sadly they seem to have done this by eliminating everything resembling a government service.

I just hope our new DEMOCRATIC legislature can now legislate us back to Industrialized World status.

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Response to kestrel91316 (Reply #3)

Wed Nov 14, 2012, 06:04 PM

4. With Prop 30 passed, maybe some of those services will return

 

Of course, one never knows.

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Response to kestrel91316 (Reply #3)

Wed Nov 14, 2012, 06:06 PM

5. What, you are not enjoying going off road on major roads?

Yes, there is a section of Friars Rd that makes me wish my truck was still around. No serious... I went to pick my car today from the dealership and there was no way I could go fast over that track even if the car I was driving was a loaner.

And I thought Mexico City roads were in bad shape... silly wabbit.

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Response to kestrel91316 (Reply #3)

Wed Nov 14, 2012, 10:14 PM

22. no, we just passed a tax increase! That is responsible. It is a good thing.

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 06:13 PM

6. And we're STILL sending $50-billion more in fed taxes paid by CA residents and businesses to DC

than we're getting back from the Feds every year.

We're STILL paying the fucking bills in the fucking moocher red states!

And yet, we're heading to a budget surplus because the Ds have finally gained total control of the state legislature, kicked the Rs to the curb and are getting things done.

Fuck Rs, fuck Arnold and fuck all my neighbors in OC who think that Rs are the solution to CA's problems.

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 06:16 PM

7. Congratulations!

That's a job well done...

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 06:54 PM

8. That's because there is a Dem in the State House. nt

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:00 PM

10. Impossible! Democrats run the show!

How can this be?!

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:03 PM

11. And the Republicans say we're the big spenders. Yeah right!

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Response to Initech (Reply #11)

Wed Nov 14, 2012, 07:13 PM

13. Exactly, Dems can balance the budget on the backs of the poor and middle class better than they can!

"Included in Brown’s cuts are severe cuts to the state’s social programs like $1.2 billion from Medi-Cal, which provides health coverage for poor people, and $880 million from CalWORKs, the state’s welfare-to-work program. Schools aren’t spared, with $1.5 billion being cut from proposition 98 spending on K-12 education and $290 million cut from the Cal Grant Program. In total Brown’s budget calls for $8.3 billion in cuts, even if his $5.5 billion in taxes is passed."

http://www.wsws.org/articles/2012/jun2012/cali-j08.shtml

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Response to hughee99 (Reply #13)

Wed Nov 14, 2012, 07:41 PM

17. The budget you cite predates Proposition 30's passage by 6 months.

Proposition 30 will raise the state's sales tax by a quarter of a cent for four years starting Jan. 1 and increase income taxes for people who make at least $250,000 by up to 3 percentage points for seven years, retroactive to the start of the 2012 tax year. It is projected to raise an average of $6 billion annually for the state's general fund and education to prevent nearly $6 billion in "trigger cuts," mostly to education, this year.


link

The benefit to the CA State University system education costs are immediate:

With state voters approving Gov. Brown’s tax measure to help education, leaders of the University of California system pledged Wednesday to stand by their past promises not to raise tuition for the current school year.

“There’s no doubt about that,” UC system spokesman Steve Montiel said when asked whether those pledges would be maintained.

UC leaders had warned that a midyear tuition hike of 20% -- or about $2,400 for undergraduates -- was likely if Proposition 30 had failed. Now any such potential tuition increase is off the table when the UC regents meet next week in San Francisco.


link

The cuts to social services (Medi-cal, CMSP, Welfare to Work - whose slashing started long ago under Ahnold - were based upon the projected deficit PRIOR to the passage of proposition 30. The outlook for these services is not as dismal as the June 2012 budget forecast you use as the basis for your assertion. If what the OP has posted holds true, then these type cuts should be minimal. And believe me, CA Democrats do not want to cut social services to the poor. It's not what we do.

If anything, austerity in CA has been headed off with the passage of 30, and now with a BLUE super majority in both bodies and a Democratic Governor, I see good things ahead indeed.

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Response to Melinda (Reply #17)

Wed Nov 14, 2012, 07:51 PM

18. My apologies,

I guess I don't quite understand how a policy that's only been in place for 8 days has already cut the deficit so significantly... or is this just projecting the next deficit based on current assumptions?

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Response to hughee99 (Reply #18)

Wed Nov 14, 2012, 08:05 PM

19. Yes, it's all projections, BUT, as I showed, the UC System did away with tuition increases based...

on these projections. So it has had an immediate positive effect. I'm super optimistic.

And no apologies necessary, it's all a good exchange of information. That's what discussion boards do - hopefully.

**Edited to add: The new tax rate resultant from Prop 30 is retroactive to ALL CA 2012 income taxes, hence the huge difference in numbers. Rich peeps in CA are not gonna be happy come January 2013!

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Response to hughee99 (Reply #18)

Wed Nov 14, 2012, 10:15 PM

23. Yes it is based on projections of what prop 30 will change.

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:06 PM

12. Wonder how much of that is from Facebook revenue. nt

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:14 PM

14. We're gettin shit done! Yea!

 

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:17 PM

15. Jeez. Didn't the reThugs say "Let it go bankrupt?

How patriotic.

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 07:21 PM

16. Proposition 30 passed. Here are the new income tax rates on high income earners in CA:

1. Every dollar earned above 250,000 will be taxed at 10.3%
2. Every dollar earned above 300,000 will be taxed at 11.3%
3. Every dollar earned above 500,000 will be taxed at 12.3%
4. Every dollar earned above 1,000,000 will be taxed at 13.3%

The old tax code for upper income earners went as follows:

1. Every dollar earned above 1,000,000 was taxed at 10.3%

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 08:07 PM

20. Tech boom is helping again.

This same thing can happen all across America if we can just get past this idiotic "fiscal cliff".

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Response to Liberal_in_LA (Original post)

Wed Nov 14, 2012, 08:24 PM

21. This is what happens when Republicans aren't in charge

and are out of the way.

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