How many of you missed California's
debt is GONE?
Riding a
wave of new tax revenue, California Gov. Jerry Brown on Thursday proposed a
state spending plan that eliminates the deficit and provides $6.3 billion more
in spending than the previous year.
The
revenue has wiped away a budget deficit that stood at $25 billion when Brown
took office two years ago and has created a slight surplus.
Brown
proposed a $97.6 billion general fund for the 2013-14 fiscal year, an increase
of 7 percent from the current year. The additional revenue will help him pour
more money into public schools and universities.
California's
spending plan for the coming fiscal year will rise by 7 percent, a powerful
indication that the state that came to symbolize fiscal mismanagement during
the heart of the recession is emerging into brighter days.
"California
today is poised to achieve something that has eluded us for more than a decade
-- a budget that lives within its means, now and for many years to come,"
Brown told reporters.
His
budget includes a surplus of $850 million.
A
rebounding economy coupled with new revenue from the higher sales and income
taxes voters approved last November have put the nation's most populous state
on a healthier financial trajectory, as it begins to turn the corner on an era
of deep budget shortfalls and spending cuts to core state programs.
Play Video
California Budget
Deficit Disappears
California Governor Brown says that for the
first time since the recession, California faces no budget deficit, with CNBC's
Jane Wells.
California's persistent budget woes came to symbolize the plight
of states struggling through the recession as tax revenue declined steeply,
leaving governors and state legislatures around the country little choice but
to consider deep cuts or unpopular tax increases.
Brown took both approaches. He pushed an austerity message that
forced cuts throughout state government during his first two years in office
while persuading California voters to approve increases to the state sales tax
and on income taxes on high-income earners.
Despite the new revenue flowing in, Brown has warned his
Democratic colleagues who control both houses of the state Legislature that
they must not overplay their hand and spend too freely. The governor wants to
build a reserve fund for future downturns and focus spending on K-12 education,
which already accounts for more than half the state's general fund spending.
Among Brown's priorities is creating a new funding formula for
public schools. It would be aimed at giving school districts more control over
spending and directing state money to the neediest children and poorest
districts.
His proposal is expected to run into opposition from lawmakers
representing more affluent regions of the state.
Cuts are still expected in some areas, such as the courts, while
health care programs and social services are expected to see no increases in
spending.
California's general fund spending hit a high of $103 billion
before the recession decimated the state's economy and severely cut tax revenue
for the state and municipalities. It dropped to a low of $87 billion during the
2011-12 fiscal year, requiring lawmakers to make deep cuts in a wide array of
state services, including K-12 schools, higher education, the court system, and
social services for the needy and disabled. Don't forget to play Gov.
Video.
So what happened to it? Any opinions? I think I know!!!
4 comments:
Too many people awakened to the CAFR Funds so they started going into that piggy bank to resolve the problem in hope the rest stop looking....?????
Good one RagtopRoadster! Anything to makes us think they are good and so efficient. When reality has been proven to be another story. Bastards
You're right. Once they blow through the CAFR Funds, all hell will break loose.
Ragtop, I think you are right! Good for Jerry!
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