Thursday, November 18, 2004
Ahnuld hasn't fixed the budget
With all that big talk about terminating the deficit it looks as if Det. Kimball is in over his head!
Here in California despite what the Republicans say cutting services by let's say 30% in no way will solve the budget problems What's interesting is here in California because of his budgets "Services" have gone up, we have new higher taxation in diffrent forms and we have more debt thanks to the bonds.
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With all that big talk about terminating the deficit it looks as if Det. Kimball is in over his head!
Legislative Analyst Elizabeth Hill estimated yesterday that the state will have a $6.7 billion budget gap next year that could grow to nearly $10 billion in the following year if corrective action is not taken.
An improving economy is producing more tax revenue than expected, but the nonpartisan analyst is predicting another year of difficult budget decisions, perhaps with an early dispute over school funding.
"It's very important to understand that with the increase in revenue we really get very little effect to the bottom line," Hill told reporters.
She is urging lawmakers not to take the easy way out, by once again pushing debt into the future, as they struggle to close the $6.7 billion gap in an $89.5 billion general fund for the new fiscal year beginning next July.
The annual update from the analyst shows that Gov. Arnold Schwarzenegger, who temporarily closed a $15 billion gap in the current budget, is making some progress on reducing an ongoing "structural" gap between revenue and spending.
A series of budgets, including one signed by Schwarzenegger in July, have avoided spending cuts and tax increases by borrowing and other temporary measures that balance the budget for a year and then allow the gap to reopen.
Schwarzenegger is working on a budget he must propose by Jan. 10 for the new fiscal year beginning July 1. As in the current budget, the governor wants to avoid a tax increase.
At recent news conferences, Schwarzenegger has said that even though revenue is growing faster than expected, built-in spending requirements based on inflation, caseload growth and other factors are growing even faster
Here in California despite what the Republicans say cutting services by let's say 30% in no way will solve the budget problems What's interesting is here in California because of his budgets "Services" have gone up, we have new higher taxation in diffrent forms and we have more debt thanks to the bonds.
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