California revenue projected to exceed budget estimates by $2 billion
Source: Sacramento Bee
Barring a stock market slump that drags down the states economy, California budgets will run surpluses through the end of the decade even as temporary tax increases phase out over the coming years, the Legislatures nonpartisan fiscal analyst said Wednesday.
The fiscal outlook by the Legislative Analysts Office also projects that the state will take in $2 billion more in revenue through June than lawmakers expected when they approved the current budget plan. All of the increase will be absorbed by the states voter-approved constitutional funding guarantee for schools and community colleges.
And the state is on pace to have $4.2 billion in reserves by June 2016 under Proposition 2, the rainy-day reserve passed by voters earlier this month.
Read more: http://www.sacbee.com/news/politics-government/capitol-alert/article4016095.html
ffr
(22,670 posts)If his policies were to continue the state could be financially independent and they could begin lining the streets with gold.
I wish we had his wisdom here in my state. Instead we have a Republis politician.
I've been admiring his skills/abilities for years now.
We love our Jerry Brown in California!!! Jerry Brown!!!
& recommend.
Auggie
(31,174 posts)bhikkhu
(10,718 posts)credit where credit's due.
We have a pretty good governor here in Oregon and things aren't bad, but (I have to say) he hasn't worked any similar miracles that I've heard of.
Psephos
(8,032 posts)lol
JDPriestly
(57,936 posts)Our tax revenues in California come from income including corporate income taxes and sales taxes as well as fees.
California raised taxes on everyone but especially on the very top earners.
Compare to Kansas. Kansas lowered taxes and has severely declining tax revenues.
Who is smarter? California where we pay our bills or Kansas where they are having to cut important expenditures?
Schwarzenegger left a fiscal mess for Brown to clean up.
That is typical. A Republican, even a liberal one, can't pay the bills. Bring in a Democrat and the Democrat pays the bills.
Obama has also reduced the problems with our federal budget and deficits.
Elect Democrats if you want good fiscal management in government.
Psephos
(8,032 posts)The income of top earners and corporations is highly cyclical.
We've had a five-year bull market in stocks and financial assets that has been fueled by unprecedented fake money (or "quantitative easing" injections by the Fed, and unprecedented budget deficit spending by the USG. The underlying business fundamentals come nowhere near justifying the speculative run-up in the so-called "markets." The game is rigged, and the one-percenters who are stripping wealth from it know it, nod to it, fear it...and keep trying to get what they can while they can.
Government and particularly Fed actions have created super-bubbles that cannot be sustained, because there is no actual physical wealth creation driving the prices up.
This is why tax revenues are fatter these days.
C.f. 2008 for an idea of what happens when the carousel stops. (Or take a look at Japan.)
The fundamentals are now and will be far worse in 2015 than in 2008, and the Fed and the USG are, comparatively speaking, out of ammo to deal with the next crisis.
I agree with your political observations, but not with your argument about what has driven tax revenues the past few years. The financial economy is just a big financial Potemkin village.
When the music stops, so will tax collections, by catastrophic amounts. Our short-sighted governments, from local all the way to federal, have no rainy day funds, but constantly accelerating obligations. Not hard to see what will happen then.
The red team vs. blue team paradigm is not helpful here. A cabal of elites push that mindset on us un-elites, because it diverts attention from them and their usurpation of power and their steady parasitic drain of honestly earned money and assets from the true wealth and value creators of the world. They laugh at us trying to see which jersey someone is wearing.
JDPriestly
(57,936 posts)better off than we would have been without the tax increases. Brown requested passage of a proposition that would establish some savings for California. I believe it passed, but I am not sure.
C Moon
(12,213 posts)Spitfire of ATJ
(32,723 posts)C Moon
(12,213 posts)bemildred
(90,061 posts)Last edited Thu Nov 20, 2014, 01:27 PM - Edit history (1)
It justififies their attempts to hamstring the government so that it cannot interfere with the rich.
JI7
(89,252 posts)since they don't want to pay taxes ?
DFW
(54,410 posts)If your Republican leaves you a fiscal mess, call a Democrat to fix it, then trash him for doing it, and then elect another Republican to bring back the mess for God and country.
Well, unless you're Kansas, I mean.
...
greymattermom
(5,754 posts)There needs to be one strong example of the reality of these low tax policies. Kansas will become the ultimate moocher, as they sometimes call it. We'll just have to figure out a different way to get to Denver.
deurbano
(2,895 posts)Tough hit to a vulnerable population.
SO nice to have California back on track. It was pure Republican deviousness that put that last joker in office. (At least, this time we didn't inflict him on the rest of the country-- and world!)
SwankyXomb
(2,030 posts)Darrell Issa got Gray Davis booted out of office in the hopes of taking the Governorship for himself, only to be sandbagged by Ahnold.
Odin2005
(53,521 posts)Unfortunately the Pukes took back the state House, so bye-bye surplus and welcome back state government shutdowns.
Dopers_Greed
(2,640 posts)Nope.
It's actually the states run by baggers that are failing.
But don't tell the M$M this.
BeyondGeography
(39,375 posts)Except for the 38 million people who live there.
Dopers_Greed
(2,640 posts)Who have moved there over the last few years from Texas.
None have returned.
hollowdweller
(4,229 posts)All it took was the voters coming together and kicking enough republicans out of office so they could get things done.
onecaliberal
(32,864 posts)We in California, elected a Dem super majority. 6 months later California was out of debt with a plan to create a surplus.
YvonneCa
(10,117 posts)DesertDiamond
(1,616 posts)ripcord
(5,409 posts)Public employee penions are underfunded by billion, UC tuition is going up 25% over the next 5 years and our infrastructure is horrible. I think Jerry Brown has done a great job but people are talking like the job is finished when it has barely begun.
YvonneCa
(10,117 posts)...direction is helpful. Jerry did so. Arnold didn't. 😉
Cartoonist
(7,317 posts)I still occasionally see a LTTR bemoaning the loss of a two party system in California. Nevermind it was republican obstructionism that even hindered Arnold from getting anything done.