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pwaldo
05-14-2012, 03:46 PM
http://news.yahoo.com/california-facing-higher-16-billion-shortfall-213905732--finance.html


California's budget deficit has swelled to a projected $16 billion much larger than had been predicted just months ago and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, Gov. Jerry Brown said Saturday.

The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.

Brown did not release details of the newly calculated deficit Saturday, but he is expected to lay out a revised spending plan Monday. The new plan for the fiscal year that starts July 1 hinges in large part on voters approving higher taxes.

The governor has said those tax increases are needed to help pull the state out of a crippling decade shaped by the collapse of the housing market and recession. Without them, he warned, public schools and colleges, and public safety, will suffer deeper cuts.

Democrats, who control the Legislature, have resisted Brown's proposed cuts so far this year. Republican lawmakers criticized the majority party for building in overly optimistic tax revenues.

"Today's news underscores how we must rein in spending and let our economy grow by leaving overburdened taxpayers alone," said Assembly Republican leader Connie Conway in a statement.

The governor pursued a ballot initiative because Republican lawmakers would not provide the votes needed to reach the two-thirds legislative majority required to raise taxes.

Assembly Speaker John Perez, D-Los Angeles, acknowledged that lawmakers have "limited and difficult choices left to solve the deficit." Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he wasn't surprised by the deficit spike given that state tax revenue have fallen $3.5 billion below projections in the current year.

"We will deal with it," Steinberg said Saturday. "And we know that more cuts are inevitable but we will do our very, very best to save more than we lose, especially for those in need."

Under Brown's tax plan, California would temporarily raise the state's sales tax by a quarter-cent and increase the income tax on people who make $250,000 or more. Brown is projecting his tax initiative would raise as much as $9 billion, but a review by the nonpartisan analyst's office estimates revenue of $6.8 billion in fiscal year 2012-13.

pghin08
05-14-2012, 03:55 PM
California has been in big trouble for a long time now. It's like our own personal Greece.

INTIMADATOR2007
05-14-2012, 04:13 PM
Kinda what happens when you run off the rich folks , your state tanks .

AUTaxMan
05-14-2012, 05:12 PM
California has been in big trouble for a long time now. It's like our own personal Greece.

Hopefully the federal government won't try to bail them out.

AUTaxMan
05-14-2012, 05:14 PM
Kinda what happens when you run off the rich folks , your state tanks .

It was obvious that raising taxes on corporations would run them off. How legislators cannot see this is beyond me. It all goes back to how governments score tax legislation on a static basis instead of on a dynamic basis, assuming that tax policy does not affect taxpayer behavior.

duwal
05-14-2012, 06:07 PM
so many chicken little's

AUTaxMan
05-14-2012, 06:52 PM
so many chicken little's

So you think it's not a big deal?

tsjct
05-15-2012, 02:20 AM
Let the Liberals FAIL. Just goes to show SOCIALISM does not work. You can only take so much $ from people before the $ runs out or the Businesses leave. They are coming to Texas so fast its crazy and we love it here in the Lone Star State.

MadMan1978
05-15-2012, 08:09 AM
I am sorry but that mess was creted by you buddy Arnold....

that why they ran him out of the state!

tsjct
05-15-2012, 09:05 AM
I am sorry but that mess was creted by you buddy Arnold....

that why they ran him out of the state!

He ran as a Republican but was a TRUE Demoncrat at heart.

duane1969
05-15-2012, 09:25 AM
I am sorry but that mess was creted by you buddy Arnold....

that why they ran him out of the state!

Seems to me that it started with a guy named Gray Davis and his supreme failure at handling problems with energy and budget issues.

Oh and he was not a Republican.

EDIT: And he is the one who got ran out. Literally.

MadMan1978
05-15-2012, 10:13 AM
why is everyone surprised that this is happening?

at some level of government this will continue to happen. With all honesty all politics has failed both R and D! a combination of taxes and cuts are going to be need to make this work and that is at all levels! STOP BLAMING Liberal politics!

AUTaxMan
05-15-2012, 10:44 AM
why is everyone surprised that this is happening?

at some level of government this will continue to happen. With all honesty all politics has failed both R and D! a combination of taxes and cuts are going to be need to make this work and that is at all levels! STOP BLAMING Liberal politics!

Public budget shortfalls are largely the result of entitlement plans and union benefits that are mostly championed by liberals. That's why liberals get blamed.

MadMan1978
05-15-2012, 10:55 AM
Public budget shortfalls are largely the result of entitlement plans and union benefits that are mostly championed by liberals. That's why liberals get blamed.

and honestly thats bull!

this state Commonwealth of Mass had a 2.6 billion shortfall 2 years ago...

50% of the that was due to the Rommey Healthcare....

AThrash37DSnyder
05-15-2012, 11:02 AM
Stupid greddy losers is why this is happening

Not suprized this is happening

duane1969
05-15-2012, 11:11 AM
why is everyone surprised that this is happening?

at some level of government this will continue to happen. With all honesty all politics has failed both R and D! a combination of taxes and cuts are going to be need to make this work and that is at all levels! STOP BLAMING Liberal politics!

Since the specific subject is California, and Dems are the ruling party in Calfornia, it isn't unfair to point the finger in this instance. Gray Davis signed legislation that required companies to provide health insurance out of their own pocket, liberal taxation and regulation has driven companies out of California, and Boxer and Pelosi have continued to fund their pet projects with taxpayer money while their state flounders and struggles. In this case, blaming liberals is spot on.

AUTaxMan
05-15-2012, 11:27 AM
and honestly thats bull!

this state Commonwealth of Mass had a 2.6 billion shortfall 2 years ago...

50% of the that was due to the Rommey Healthcare....

http://www.factcheck.org/2011/03/romneycare-facts-and-falsehoods/

pghin08
05-15-2012, 11:37 AM
California was screwed up LONG before Gray Davis and the Terminator (both of whom I see as slightly sympathetic figures--Arnold was too late to save everything, Gray Davis was consumed by all that Enron biz). I'd take it the whole way back to the 70s when they passed Prop 13.

AUTaxMan
05-15-2012, 11:42 AM
California was screwed up LONG before Gray Davis and the Terminator (both of whom I see as slightly sympathetic figures--Arnold was too late to save everything, Gray Davis was consumed by all that Enron biz). I'd take it the whole way back to the 70s when they passed Prop 13.

Agreed, although I don't see the governator as sympathetic. He ran as a moderate republican and governed as a democrat.

pghin08
05-15-2012, 11:47 AM
Agreed, although I don't see the governator as sympathetic. He ran as a moderate republican and governed as a democrat.

Eh, I dunno about that. This is a guy who was willing to cut 1/4 of his state's entire budget.