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Credit Where Credit is Due July 28, 2013

Posted by geoff in News.
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Back in January (and before) there was a lot of derision from the right regarding California’s budgetary situation, but that was halfway through their fiscal year. The fiscal year finished at the end of June, so how’d they do?

Pretty dang well.

Total revenue for the year was $103 billion, almost $16 billion higher than last year. Total disbursements were $96 billion, only $7 billion higher than last year.

Yes, California actually had a $7 billion surplus.

I have to admit that I didn’t think Jerry Brown could do it – I thought he was exactly the wrong guy for the job. But he got it done, and shut me up.

Congratulations, California and Governor Brown.

Comments»

1. geoff - July 29, 2013

Kind of ironic that Monty Doom!-posted at AoSHQ today, after a long absence. It was his “California is boned” lines in his Doom! posts that inspired this post.

2. Skinbad - July 29, 2013

Somehow I’m getting a strong urge to google

California budget smoke and mirrors

All the pension money is off the books? But, hey, if he’s improving the situation, good for him.

3. geoff - July 29, 2013

They haven’t cleared up their debt problems – just their deficit problems.

But that’s better than the President has done with the federal deficit.

4. Andy - July 31, 2013

Some of this is a one-time thing, though, from the state impact of people taking advantage of the lower Federal tax rates on capital gains, etc. that expired at the end of 2012. I’ll hold my applause for a bit.

5. Mike Patton - August 2, 2013

Brown & Co performed this “miracle” using some tricks that will continue to run companies and individuals out of the state. Aside from the stupid-high marginal rates on income tax, they also changed estimated tax requirements.

In the first quarter, people must now remit 30% of what they expect to owe in taxes. In the second quarter, they must remit the other 70%. Even if, as quite often happens, they have no earthly clue what their annual income will end up being. Penalties for being short are harsh, and no refunds are provided for overpayment; one simply has the right to offset the next year’s estimated payments.

California is a lovely place, and I enjoy visiting there, but I pity anyone who lives there and earns any serious income. These poor folks are treated like infinite sources of free money by the state, and it will come back to bite California, perhaps sooner than later.

Brown has deferred the immediate problem, from his bully pulpit. He hasn’t come close to solving the larger, existential problem.


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