Monday, November 15, 2010

As California Goes...

SACRAMENTO – Assembly Republican Leader-Elect Connie Conway, of Tulare, today issued the following statement in response to Legislative Analyst Mac Taylor’s Fiscal Outlook report projecting state revenue for the 2011-12 budget year and beyond:

"Today’s grim forecast of a $25.4 billion budget deficit is a powerful reminder that the Legislature needs to take immediate action to reduce spending and balance the budget. Democrats and Republicans must work together to make the tough but realistic decisions on spending priorities required to close the deficit. The people of California have repeatedly made it clear that they don’t want to pay higher taxes to fund Sacramento’s budget mistakes. Republicans will fight any effort to raise taxes to fund more irresponsible overspending. I stand ready to work with Governor-Elect Brown and our Democrat colleagues to find budget consensus, and take action without delay to get spending under control and pass the honest, no-tax budget Californians deserve."
via Capitol Update

California’s Assorted Rocks and Hard Places - Victor Davis Hanson
News came out on Thursday that the California budget deficit is actually closer to $25 billion, twice what we are told. This follows from last year’s $42 billion shortfall, which was closed by all sorts of one-time tax increases and gimmicks. Here is our general dilemma in a nutshell.

Calif borrows $40M a day to pay unemployment -
With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.

The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.

California's unemployment fund has deficit of $10.3 billion -

What does the market know about California's finances that the rest of us don't? - Doug Ross at The Journal

Troubled California begins $14bn bond sale - Financial Times
Troubled California to Restructure Debt Sales - Financial Times

'A horrible, horrible mess': State budget back in the red, lawmakers called to special session - Times-Standard
"It doesn't really make sense for a lame duck governor to be doing this,” said Noreen Evans, who next month will take the 2nd District State Senate seat currently held by Patricia Wiggins."... Evans said it might be time to hand off some state services to the county and city levels, where voters have been more open to passing tax increases.

North Coast Assemblyman Wesley Chesbro, D-Arcata, is on vacation and was not immediately available for comment Friday, according to his spokesman.