[Source: Sacramento Bee] From July through September, California collected $8.7 billion more in tax revenue than anticipated, according to the state’s Department of Finance, a bright sign amid a year of devastating economic news. The numbers (http://www.dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/documents/2020/Oct-20.pdf) reflect the positive effect of federal aid, which came in the form of one-time $1,200 checks for individuals Read More…
Tag: budget deficit
State budget ‘balanced’ with massive new debt
[Source: CalMatters /Dan Walters] Gov. Gavin Newsom says the new California state budget is balanced, but in reality it has a huge deficit that will be covered by indirect borrowing. Last month, Gov. Gavin Newsom signed a 2020-21 state budget he described as “balanced, responsible and protects public safety and health, education, and services to Californians Read More…
Will California voters support new taxes to avoid painful budget cuts?
[Source: KQED] When supporters of increasing commercial property taxes, reshaping property tax transfer rules and legalizing sports gambling began formulating initiatives to put before voters in November, California’s economy was riding high — unemployment was at historic lows and state coffers were flush with fat surpluses. With less than five months until Election Day, campaigns Read More…
CBO projects virus impact could trim GDP by $15.7 trillion
[Source: Associated Press] The Congressional Budget Office said Monday that the U.S. economy could be $15.7 trillion smaller over the next decade than it otherwise would have been if Congress does not mitigate the economic damage from the coronavirus. The CBO, which had already issued a report forecasting a severe economic impact over the next Read More…
Governor lays out plan for solving record state budget deficit
[Source: CalChamber] Governor Gavin Newsom has proposed solving a record budget deficit by tapping reserves, borrowing money from special funds, deferring spending and raising some targeted revenues. But the major budget solution to an estimated $54.5 billion deficit depends on spending federal funds already allocated to California and receiving federal funds not yet approved by Read More…
Coronavirus plunges California into worst budget deficit in state history
[Source: The Los Angeles Times] California’s government faces a $54.3-billion budget deficit through next summer according to an analysis released Thursday by advisors to Gov. Gavin Newsom, the deepest projected fiscal hole in state history. The estimate accounts for both an alarming erosion of tax revenues and a growing need for health and human services Read More…
California avoids addressing causes of its high energy costs
[Source: Fox & Hounds] Californians will continue to pay some of the highest costs for electricity and fuel use as the State unexpectedly collides catastrophically with the global pandemic that will impact businesses and employment for an unpredictable economic future. The State’s much-touted $21 billion operating-budget surplus is likely to disappear entirely due to declining Read More…
Surprisingly, talk in Sacramento could return to a firm cap on state spending
[Source: Los Angeles Times] During California’s biggest state budget fights, many of which played out in the shadow of monster deficits, lawmakers clashed mightily over this question: Were the state’s problems a result of too little cash or too much spending? Those who believed it was a cash problem seem to have prevailed. But don’t Read More…
Trump team prepares dramatic cuts
[Source: The Hill] Donald Trump is ready to take an ax to government spending. Staffers for the Trump transition team have been meeting with career staff at the White House ahead of Friday’s presidential inauguration to outline their plans for shrinking the federal bureaucracy, The Hill has learned. The changes they propose are dramatic. The Read More…