California revenue bonanza: $1.2 billion higher than expected (Sacramento, Montclair: income, tax)

[18Montclair]

California s revenue bonanza: $1.2 billion higher than expected

By Denis C. Theriault

SACRAMENTO — Providing a glimmer of optimism for the state's gloomy financial picture, California's tax revenues soared $1.2 billion higher than expected last month, marking the third time in four months that the state's income topped forecasts.

If that pattern holds, the state's $19.9 billion budget gap might actually shrink this spring — which would be the first time since 2007 that the governor's spring budget update has brought a bit of good economic news.

Although some analysts stress it's still too early to tell, one economist estimates the deficit could shrink by $2 billion to $5 billion, buoyed by Silicon Valley's stock market prowess. Lawmakers have floated similar numbers.

The possibility of such rosy news has quietly emboldened Democrats to put off some of Gov. Arnold Schwarzenegger's harshest proposed cuts to education, social services and health programs.

"There is a reasonable scenario by which we can get through this budget with minimal pain," said Senate President Pro Tem Darrell Steinberg, D-Sacramento, noting "hopeful signs" in the state's economy after four years of multibillion-dollar deficits.

"As difficult as this budget is," Steinberg said, "we've been through the worst of the worst"...

http://www.mercurynews.com/breaking-...nclick_check=1

[Fighter 1]

Originally Posted by 18Montclair

Is he for real????

[EscapeCalifornia]

I'm sure the government employee unions are already ordering cases of Dom Perignon (at taxpayer expense of course) for their celebration.

[Lifeshadower]

Originally Posted by EscapeCalifornia

I'm sure the government employee unions are already ordering cases of Dom Perignon (at taxpayer expense of course) for their celebration.

$1.2 billion dollars worth of it

However, any sign of improvement at this point is better than no sign of improvement. I wouldn't say we are by any means anywhere close to being out of the fire.

I exercise 'cautious optimism' here

[A.J._in_L.A.]

This is great!

Some progress >>>>> no progress

[bhcompy]

They should still make temporary cuts to balance it out. 20billion is still a huge gap and the state doesn't need to issue yet more money in bonds to cover it

[Curmudgeon]

There they go again. The Legislature will spend any "surplus" they can get their hands on to fund their pet projects and pander for votes. Same old, same old.

It would be nice if they budgeted for the worst case rather than a pollyanna scenario but I doubt they have the collective smarts.

Still, it's a bit of good news, for once. Keeping my fingers crossed for the state!

[steel7]

Originally Posted by EscapeCalifornia

I'm sure the government employee unions are already ordering cases of Dom Perignon (at taxpayer expense of course) for their celebration.

Lets not forget the catered parties all paid for by the taxpayer.

[sav858]

Originally Posted by Curmudgeon

There they go again. The Legislature will spend any "surplus" they can get their hands on to fund their pet projects and pander for votes. Same old, same old.

It would be nice if they budgeted for the worst case rather than a pollyanna scenario but I doubt they have the collective smarts.

What surplus? It's still a deficit, just one smaller than expected.

[Curmudgeon]

Originally Posted by sav858

What surplus? It's still a deficit, just one smaller than expected.

That's why I put "surplus" in quotes. To the Legislature it will be like found money and they'll want to spend it on pet projects, pork and pandering!

IT'S AN ELECTION YEAR!!!