California Budget Perpetuates Deficit Spending

Saturday, 09 Oct 2010 05:04 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
SACRAMENTO, Calif. (AP) -- Even as California lawmakers passed a budget Friday to end an unprecedented 100-day impasse, their spending plan looked to be so tenuous that the next governor was expected to face a multibillion dollar deficit from the moment he or she steps into office next year.

Two-thirds of the budget solutions signed by Gov. Arnold Schwarzenegger on Friday afternoon are based on one-time or temporary money - some of which may never materialize.

That will leave California to face "sizable annual budget problems in 2011-12 and beyond," the Legislative Analyst's Office said in a report issued after the Senate passed the main budget bill earlier Friday.

Lawmakers bridged a $19 billion shortfall, more than 20 percent of the $87.5 billion general fund spending plan. It includes no tax or fee increases but uses a combination of cuts, funding shifts, delayed corporate tax breaks and assumptions about money the state hopes to receive.

Among those assumptions is $5.4 billion in new federal funding, which is $4 billion more than the state has received so far this year and $2 billion more than Schwarzenegger projected in the revised budget proposal he released in May. Most of the money has not been authorized by Congress, which could change into Republican hands in November.

The heavy reliance on assumed federal money drew criticism from California Republican Rep. Darrell Issa who called California's budget "an embarrassment."

"It's full of false assumptions and failed gimmicks," Issa, R-Vista, said in statement.

Schwarzenegger, a Republican, and state lawmakers acknowledge there are no guarantees the state will collect that much more from the federal government. California was among at least 46 states that faced shortfalls this year due to the negative impact of the economy, according to the Center on Budget and Policy Priorities.

Of the $42 billion that has flowed into California from the stimulus program, about $32 billion has been awarded directly to state government for safety-net programs and to help stabilize the deficit, according to the state's recovery task force.

"It's full of false assumptions and failed gimmicks," Issa, R-Vista, said in statement.

Schwarzenegger, a Republican, and state lawmakers acknowledge there are no guarantees the state will collect that much more from the federal government. California was among at least 46 states that faced shortfalls this year due to the negative impact of the economy, according to the Center on Budget and Policy Priorities.

Of the $42 billion that has flowed into California from the stimulus program, about $32 billion has been awarded directly to state government for safety-net programs and to help stabilize the deficit, according to the state's recovery task force.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Texas Lt. Gov.: Mexican Government Helping Illegals

Tuesday, 29 Jul 2014 08:14 AM

Mexican officials are abetting the illegal migration of thousands of children into the United States, Texas Lt. Gov. Dav . . .

Lawyers: Fast-Track Deportations Don't Protect Kid's Rights

Tuesday, 29 Jul 2014 07:51 AM

There is push-back from immigration lawyers against the Justice Department's decision to move more swiftly to deport Cen . . .

Medicare Relatively Sound, Social Security Disability Shakier

Tuesday, 29 Jul 2014 07:37 AM

Medicare will be able to pay full hospital coverage for its clients through 2030. Social Security's disability program w . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved