California Continues to Boom -- State Budget Has $6.1 Billion Surplus! (Stanford: credit, bankrupt)

[Mr5150]

Originally Posted by Peasy973

So we should get a special refund this year and reduction in gas taxes, right?

Good idea? Let’s disolve the rainy day reserve! We’ll never need it and boy, that 12 cents a gallon savings on gas...wowie! I can get me a latte at Starbucks come the end of the month with that savings.

[Elliott_CA]

https://twitter.com/KCRAKevin/status/951149607181930496

This doesn't make sense. Gaines wants the state to be like a spendthrift family that buys new cars every year and has no savings. The state, like sensible families, should have a savings account for emergencies.

[expatCA]

https://www.mercatus.org/statefiscalrankings

[Kevroqs]

And watch it disappear in a flash.

[Semiworker]

Originally Posted by checkup

This youtube video of Jerry Brown in 1976 (when he was 37 y/o) on 60 minutes is on point with this thread and prescient -- it's all about how he was fiscally tight-fisted and against big gov't and waste


https://www.youtube.com/watch?v=2TTF1-LoKn8

Thank you for the video clip.
What a very pleasant surprise to see Governor Brown to be essentially the same man he was 40 yrs ago. I was too young in 1976 to pay attention to politics at the time.

Just 10 yrs ago they wrote off California as “the first failed state” and here we are now with $13.5B in budget surplus set aside for rainy days (including this new budget cycle addition of $3.5B). For sure the recovered economy helped, but the governor’s steady stewardship was the exact pill needed.

We need to elect the right person to continue his work!

[Californiaguy2007]

I agree...When The Governator was in office he wasn't able to get this State out of the Red,but Governor Brown did

I remember back then when so many news articles came out with the title"California,The First Failed State" or "California,America's Greece"

Today we have a State with an Economy that's booming with a Budget Surplus...I applaud the hard work and effort Governor Brown has done for California

Originally Posted by Semiworker

Thank you for the video clip.
What a very pleasant surprise to see Governor Brown to be essentially the same man he was 40 yrs ago. I was too young in 1976 to pay attention to politics at the time.

Just 10 yrs ago they wrote off California as “the first failed state” and here we are now with $13.5B in budget surplus set aside for rainy days (including this new budget cycle addition of $3.5B). For sure the recovered economy helped, but the governor’s steady stewardship was the exact pill needed.

We need to elect the right person to continue his work!

[Independentthinking]

Originally Posted by Elliott_CA

This statement puzzles me because state and local governments have been required to disclose funded and unfunded debt on audited statements for years now.

Sure thing, and that's why prior to the sales tax increase, no one seemed to know anyting about the $485 billion unfunded liability for the teacher's pension (a report put out by Stanford). Of course the media isn't complicit with the government

You seldom ever hear about things like this and it's not like the people with rose colored glasses on that idolize these politicians are actually going to take the time to look something up. I can't believe how many people I shared that report with after telling them the propoganda about it "being for the children" was total BS. They voted for it anyway because that's what people do in CA...cut off their noses to spite their face. But by all means, keep being puzzled. Instead of bragging about fictitious surpluses it would be nice if one of these politicians was honest and actually talked about the true deficit. And of course if it was so "managable", there would be no need to talk about pension reductions. Keep on with the nonsense though.

[Elliott_CA]

Originally Posted by Independentthinking

Instead of bragging about fictitious surpluses it would be nice if one of these politicians was honest and actually talked about the true deficit. And of course if it was so "managable", there would be no need to talk about pension reductions. Keep on with the nonsense though.

This "California is going bankrupt" talking point is often repeated, but it remains wrong as ever. Here's an analogy:

A guy makes $75,000 per year. At the end of the year he looks at his budget, balances his checkbook and finds he has an extra $1,000 of cash left over unspent. He puts it into savings. At the same time, he still owes $250,000 on his house on a note due in 30 years. This is exactly the same as California: the budget is the checkbook while the unfunded liabilities is the mortgage.

Conservatives jump up and down and say, "That guy only makes $75k but he owes $250k! He's gonna go bankrupt any day now!" This is exactly what they are doing with California's finances: conflating annual budgets with long term debt. It's quite misleading.

[Independentthinking]

Originally Posted by Elliott_CA

This "California is going bankrupt" talking point is often repeated, but it remains wrong as ever. Here's an analogy:

A guy makes $75,000 per year. At the end of the year he looks at his budget, balances his checkbook and finds he has an extra $1,000 of cash left over unspent. He puts it into savings. At the same time, he still owes $250,000 on his house on a note due in 30 years. This is exactly the same as California: the budget is the checkbook while the unfunded liabilities is the mortgage.

Conservatives jump up and down and say, "That guy only makes $75k but he owes $250k! He's gonna go bankrupt any day now!" This is exactly what they are doing with California's finances: conflating annual budgets with long term debt. It's quite misleading.

Never said they were going bankrupt (I did say they had unfunded liabilities which should be taken into account...but you're welcome to keep the blinders on). And you can spare me the labeling. Perhaps it would be better if you focused on effective vs ineffective or look at issues instead of worrying about some silly party label.

[Finper]

What exactly is a rainy day disaster worse then what's going on in Monticito right now? Shouldn't some of that "extra" money be going there and to the fire victims? It's like telling residents there your tragedy isn't bad enough.