The Conservative Cave
Current Events => The DUmpster => Topic started by: Ogre on November 14, 2012, 08:07:45 PM
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Wed Nov 14, 2012, 05:35 PM
Liberal_in_LA (26,668 posts)
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
Response to hughee99 (Reply #13)
Wed Nov 14, 2012, 07:41 PM
Melinda (4,629 posts)
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.
Of course you do, your economic sense is right up there with a monkey. Actually the monkey may have more economic sense. :banghead:
Response to hughee99 (Reply #18)
Wed Nov 14, 2012, 08:05 PM
Melinda (4,629 posts)
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!
I bet any rich "peep" will be hightailing it out of CA as soon as possible.
I'm gonna bookmark this thread and pull it next year this time and compare the projected revenue to the actual revenue.
I have a sneaking suspicion that the actual revenue will be significantly lower than projections.
Response to Liberal_in_LA (Original post)
Wed Nov 14, 2012, 07:21 PM
Selatius (20,144 posts)
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%
Now it may just be me, but weren't the DUmmies demanding tax increases on the top 1% of income earners?
Since when is $250K in the top 1%? Oh, I see what they did, they have now changed the narrative to "high" income earners.
Give the DUmmies an inch and they will take the proverbial mile.
http://www.democraticunderground.com/10021819208 (http://www.democraticunderground.com/10021819208)
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California will never have real "budget surpluses". They will be spent on wasteful thing by the DemonRats or should be used to pay down their debt.
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It doesn't matter. Those taxes will drive the "high income earners" out of state. They have the means to leave, and they will. I hear the pot plantation don't cotton to no revenuers either, so they're just as screwed. They can paint a pretty picture, but nothing real.
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I'm going to buy a fiddle to strum while watching California's death throws. Maybe Nads will get her own show on Current and we can watch it live on AGTV.
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I'm going to buy a fiddle to strum while watching California's death throws. Maybe Nads will get her own show on Current and we can watch it live on AGTV.
That's it you stumbled on to a great idea. A bunch of us get together and buy ALGORE TV since it is up for sale, and we give Nadin her own crunchy news show. :rotf:
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Uh Oh, from the comments section at the OP's link (sfgate.com)
http://online.wsj.com/article/SB10001424127887324894104578106941506837334.html?mod=WSJ_article_comments#articleTabs%3Darticle
From the wall street journal:
"Lawmakers have been borrowing and deferring debts for the past decade merely to close their annual deficits, and those bills will soon come due. The legislature has raided $4.3 billion from special funds and deferred $10 billion in constitutionally required payments to schools.
The state has also borrowed $10 billion from Uncle Sam to pay for jobless benefits and $313 million this year from the state disability insurance trust fund for debt service on those federal loans. Democrats have proposed replenishing the state's barren unemployment insurance trust fund by raising payroll taxes on employers. Expect that to happen now.
Then there's the more than $200 billion in unfunded liabilities the state has accrued for worker retirement benefits, which this year cost taxpayers $6.5 billion. The California State Teachers' Retirement System says it needs an additional $3.5 billion and $10 billion annually for the next 30 years to amortize its debt.
The state has $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds that the state hasn't sold in part because it can't afford higher debt payments. Unissued bonds include $9.5 billion for a bullet train, which will require $50 billion to $90 billion more to complete. Sacramento will also need more money to support an $11 billion bond to retrofit the state's water system, which is planned for the 2014 ballot."
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If I lived in California, I'd be selling the crib, packing the car, giving the state the finger as I drove away.
Just don't come here to my state and start all your moonbat crap. We like being ignorant. :-)
If you can't leave your baggage behind, please move on.
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More comments from sfgate.com:
Oops! Looks like someone forgot the approx $398 billion in unfunded pension fund liability.
Whoopie! To celebrate I'm going to hop on my trusty unicorn and skip over the moon!
What are they crowing about? They estimate Proposition 30 will bring in about $6 billion in new taxes. What if the projected revenues fall short due to economic uncertainty in 2013? Then the deficit will go back up and California will face more spending cuts. We've been around too long to be optimistic about those entrenched interest groups taking a big bite off the state budget.
...and the companies and 1%'ers are going to head for the hills and pull out of CA.
Brown is pushing them away like a bulldozer.
Just watch.
Wildly optimistic tax forecasts.
High income earners moving out of state at historic rates. Retirees moving to low tax states. Capital gains taxes won't come in as the market will be a down year. And don't forget a stagnant housing and job market.
These forecasts are pie-in-the-sky.
I don't buy this at all, and anyone who actually does is a fool. They're lying to save face. A year or two from now, we'll find out just how grossly underestimated their "projections" of a surplus by 2014 actually are as we sink deeper into debt. Come on, people, wake up.
Here is the front page article from the NYT in Septemeber on how state officials are midleading citizens at to the state's fiscal health. This report was not covered by the Chronicle when released. There is a difference between debt and deficits.
http://www.nytimes.com/2012/09/21/us/california-debt-higher-than-earlier-estimates.html?_r=0
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Projections based on the rich staying put to be taxed and all existing businesses staying in California, I'm sure...about as valid as the 8-10% annual ROI assumptions on which all those union pension/medical plans were based that are going tits-up now...
:rotf:
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Surpassing the District of Columbia, California's poverty rate has reached 23.5 percent, the Sacramento Bee reports. This gives the Golden State the dubious distinction of leading the nation in poverty. By comparison, the national poverty rate is 15.8 percent.
:o
I do believe the rich California population is about to take a severe beating in the pocketbook.
You hear that kpete. Give till it hurts sista. :-)
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Projections based on the rich staying put to be taxed and all existing businesses staying in California, I'm sure...about as valid as the 8-10% annual ROI assumptions on which all those union pension/medical plans were based that are going tits-up now...
:rotf:
Just like Illinois depended on increased revenues from the cigarette tax. It didn't happen like they thought.
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You hear that kpete. Give till it hurts sista. :-)
:-*
You go, girl.
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Wed Nov 14, 2012, 05:35 PM
Liberal_in_LA (26,668 posts)
California's deficit shrinks to $1.9 billion!! That's tiny for CA. Was 25 Billion.
Woohoo! $1.9 Billion! Yay! Good times are here again!
SacBee: California state debt rises to $617 billion (http://www.sacbee.com/2012/08/28/4764524/report-california-state-debt-rises.html)
You dumbass clowns will just keep spending until you're back in the same old boat. It never fails with you guys.
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Wed Nov 14, 2012, 05:35 PM
Liberal_in_LA (26,668 posts)
California's deficit shrinks to $1.9 billion!! That's tiny for CA. Was 25 Billion.
OK, call me a skeptic...but. How did the California budget SHRINK?
That means spending was cut somewhere. What was cut? When?
We have YEARS of of Calif deficit spending...where did all that money go? Who paid the deficit up?
I know DUmmies have no math skills, but even they should look at this story funny.
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OK, call me a skeptic...but. How did the California budget SHRINK?
That means spending was cut somewhere. What was cut? When?
We have YEARS of of Calif deficit spending...where did all that money go? Who paid the deficit up?
I know DUmmies have no math skills, but even they should look at this story funny.
I suspect that it was either through the magic of creative accounting or somebody mixed up their total and current-year annual figures at some point in the calculation.
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Ever smelled a rotten egg?.....................I have and DUmmies are breaking more and more of them everyday.