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View Full Version : California $16 billion Budget Deficit



Gerry Clinchy
05-13-2012, 10:43 AM
AP


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.



"This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year," Brown said in an online video. "But we can't fill this hole with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety."

So ... tax revenues are down, so they can't meet expenses. There are not enough votes in the legislature to get a tax increase passed, so Brown wants to put it on a ballot for the taxpayers.

Typically, when taxes are increased in times of duress, overall tax revenues decrease even further. When taxes take more $, there is less money to go into the private sector to purchase products. As necessities like food and energy increase in costs, discretionary spending has already curtailed. And they wonder why the economy is weak?

Interesting, too, that lawsuits and Fed mandates have prevented spending cuts.

BonMallari
05-13-2012, 11:57 AM
between the libs,the illegals...errr undocumented aliens, and activists, they have ruined what was once a great state that I grew up in...really sad...California is just an example of what will happen to this country if we continue down the path we are headed...when I was in high school in the early 70's the state was a solid conservative state with only the liberal leanings of places like San Francisco and Humboldt County (largest producer of marijuana in state),and LA County....with the influx of all the undocumented aliens from SE Asia and Mexico the state turned into a very liberal left leaning state with the only remaining R strongholds being San Diego and my old hometown of Orange County

Now the state is broke with almost no hope of reversing the trend, raising tax revenues will be a blip on the screen and allow the lawmakers to turn around and give it to the services that promote those that dont contribute or are here fraudulently to thrive...

Wake up America...if it happened in California , it can happen in your state too

helencalif
05-13-2012, 12:17 PM
Businesses are leaving California which means jobs are leaving which means unemployment is rising which means more people have less money to spend.

To bring in more state revenue, Gov Brown is proposing to raise the state's sales tax. Right now the sales tax varies from county to county (7.25% and higher).

To spend less on state prisons, the state prisons are releasing the prisoners to county jails which has placed a huge financial burden on the counties. I live in a rural county which has a 67-bed jail. The jail is in sorry physical condition and the sheriff's dept. is very short of staff right now. There aren't enough sheriff's to patrol the county let alone work at the jail. There is no money in the budget to hire more sheriffs. My county can't afford to take in these state prison prisoners so it is a dilemma.

I'm guessing the non-violent crime prisoners will be released from the state prisons to ease this situation. I'm guessing that those convicted of non-violent crimes will not be sentenced to state prisons because they are too full. Perhaps they will be serving sentences in county jails.

Helen

BonMallari
05-13-2012, 01:01 PM
Businesses are leaving California which means jobs are leaving which means unemployment is rising which means more people have less money to spend.

To bring in more state revenue, Gov Brown is proposing to raise the state's sales tax. Right now the sales tax varies from county to county (7.25% and higher).

To spend less on state prisons, the state prisons are releasing the prisoners to county jails which has placed a huge financial burden on the counties. I live in a rural county which has a 67-bed jail. The jail is in sorry physical condition and the sheriff's dept. is very short of staff right now. There aren't enough sheriff's to patrol the county let alone work at the jail. There is no money in the budget to hire more sheriffs. My county can't afford to take in these state prison prisoners so it is a dilemma.

I'm guessing the non-violent crime prisoners will be released from the state prisons to ease this situation. I'm guessing that those convicted of non-violent crimes will not be sentenced to state prisons because they are too full. Perhaps they will be serving sentences in county jails.

Helen

Have you ever seen the stats on how many of the state's detainees are illegal aliens, its apalling....I thought recalling Gray Davis was a step in the right direction, but Arnold was no better...now Gov Moonbeam is back and Lt Gov. Newsome is just licking his chops waiting his turn