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Sun May 26, 2013, 06:13 AM

California 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 Legislature’s 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


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Reply California Faces a New Quandary, Too Much Money, Democratic Party runs Government too good (Original post)
UCmeNdc May 2013 OP
sakabatou May 2013 #1
Sunlei May 2013 #2
PSPS May 2013 #3
lunatica May 2013 #4
Jamaal510 May 2013 #6
JayhawkSD May 2013 #5
Bluenorthwest May 2013 #7
LiberalFighter May 2013 #8

Response to UCmeNdc (Original post)

Sun May 26, 2013, 06:49 AM

1. Please don't make it another Bush-like mistake

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Response to UCmeNdc (Original post)

Sun May 26, 2013, 08:34 AM

2. could be 100 billion above table state revenue, if Ca. totally decriminalised marijuana

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.

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Response to UCmeNdc (Original post)

Sun May 26, 2013, 09:15 AM

3. Did they learn you good in school?

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Response to UCmeNdc (Original post)

Sun May 26, 2013, 09:43 AM

4. A proper budget would take care of all three situations at the same time

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.

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Response to lunatica (Reply #4)

Sun May 26, 2013, 02:08 PM

6. +1

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Response to UCmeNdc (Original post)

Sun May 26, 2013, 09:53 AM

5. It would be nice if this were permanent income. It is not.

 

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.

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Response to JayhawkSD (Reply #5)

Sun May 26, 2013, 05:32 PM

7. You guys were closing down State Parks a few short years ago, now you have a surplus. Smile.

 

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.

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Response to UCmeNdc (Original post)

Sun May 26, 2013, 05:38 PM

8. They need to determine how much is needed for their rainy day.

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.

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