2016 Postmortem
Related: About this forumCalifornia Faces a New Quandary, Too Much Money, Democratic Party runs Government too good
The amount is a matter of debate, but by any measure significant: between $1.2 billion, projected by Gov. Jerry Brown, and $4.4 billion, the estimate of the Legislatures independent financial analyst. The surplus comes barely three years after the state was facing a deficit of close to $60 billion. (left from the GOP administration.)
http://www.nytimes.com/2013/05/26/us/californias-new-problem-too-much-money.html?nl=todaysheadlines&emc=edit_th_20130526&_r=0
sakabatou
(42,152 posts)Sunlei
(22,651 posts)That used to be your state crop Ca.
Even more 'savings' in state spending if you take into account billions in state money paid for Ca. prisoners shipped to Az. private 'for profit' prisons.
PSPS
(13,595 posts)lunatica
(53,410 posts)Pay down on some of what you owe, save some for the next economic downturn and fucking restore social programs that have been cut leaving human beings in dire straights. It doesn't have to be either/or.
JayhawkSD
(3,163 posts)California passed income tax increases last year, which went into effect this year. That caused a good deal of income shifting forward into the last part of 2012, in order to avoid higher 2013 taxes. The income from that started coming in to California in April of 2013 when taxpayers filed 2012 taxes. That not only inflated 2012 income tax revenue, it diminished 2013 income tax revenue.
California also raised sales tax, which pushed major purchases forward into 2012 to avoid higher 2013 sales tax. Same problem: artificially high sales tax revenue in early 2013, which will be followed by reduced sales later.
Not saying our budget position has not improved, but it's certainly not a case of "too much money." It would be stupid to start increasing spending again based on illusion of wealth that is nothing more than illusion. We also still have massive debts hidden away in pension system and in infrastructure commitments.
Bluenorthwest
(45,319 posts)No one, certainly not the OP said 'let's increase spending again'. It is not an 'illusion' any more than the Parks you all shut down when you were going broke were an illusion.
LiberalFighter
(50,924 posts)Considering the size of California is that surplus a lot? They should not just say because it is a huge amount that it is too much. Rather they should consider what the amount would be per citizen and then compare with any states that might have operated good budgets.
For example financial advisers suggest that families should have anywhere from 3 to 6 months living expenses in the bank in case of emergency.