Democratic Gov Jerry Brown erases de...

Democratic Gov Jerry Brown erases deficit

Posted in the Bellefontaine Forum

“The US founders were Deists”

Since: May 09

Any Town USA

#1 Jan 10, 2013

California Governor's budget has surprise: a surplus

SACRAMENTO (Reuters)- California's budget deficit is gone after years of financial troubles, Governor Jerry Brown said on Thursday, proposing a plan that raises spending on education and healthcare, boosting total expenditures by 5 percent.
Brown vowed to push back at legislators eager to raise spending quickly, restoring the billions of dollars to social services and other state functions that were cut in lean years.
"I am determined to avoid the fiscal mess that the last few governors had to deal with," Brown told reporters as he introduced the budget for the 2013-14 fiscal year beginning in July.
The state expects $98.5 billion in revenues and transfers and plans spending $97.7 billion, according to the proposal published on the state Department of Finance website.
That leaves a surplus of $851 million for the year, in addition to a projected $785 million surplus for the current fiscal year, which ends in June, allowing the state to put $1 billion toward a rainy day fund.
Brown said he saw a balanced budget for the next four years.
Spending in the upcoming year is set to rise 5 percent, or $4.7 billion, from the current 2012-13 budget. Schools and universities will see a $4 billion boost, health care spending will rise $1.2 billion, while transfers to local government will drop $2.1 billion.
The 74-year-old Governor said he aimed to focus education spending on the neediest students and districts, such as kids in poor areas like Compton, California.
Brown, a Democrat with a national reputation as a liberal, plays up his penny pinching in California. He has repeatedly stressed the need for spending restraint, even amid signs the state economy is picking up.
California job growth tops the national average, unemployment has fallen below double-digit levels for the first time in nearly four years, and voters in November approved a tax increase that closed most of the lingering budget gap.
The state Department of Finance on Thursday projected unemployment will fall to 9.6 percent this year and 8.7 percent in 2014.
California faced deficits of $9 billion just a year ago and $25 billion two years ago. Brown noted that federal government issues could challenge California's forecasts and warned the state not to get over exuberant.
"It's very hard to say no. That's going to be my job," he said.
Signs of improvement in the state's economy have raised hopes among some liberals that cuts made to healthcare and welfare programs of the last few years can be rolled back.
Democrats won a supermajority in the state legislature in November's vote, giving them the power to raise taxes without Republican support.
Republican State Assembly Leader Connie Conway said she supported Brown's messages of fiscal restraint and support for education.
(Reporting by Peter Henderson and Jim Christie; editing by Tiziana Barghini, Theodore d'Afflisio, G Crosse and Andrew Hay)
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“The US founders were Deists”

Since: May 09

Any Town USA

#2 Jan 10, 2013
Why haven't the topix economic geniuses commented on this one? Fox not give you any talking points yet?

Since: Sep 11

Location hidden

#3 Jan 10, 2013
kama sutra 69 wrote:
Why haven't the topix economic geniuses commented on this one? Fox not give you any talking points yet?
You mean like Reuters gave you your talking points on this, genius.

What's there to talk about concerning your link? Sounds like he has a budget proposal. Maybe it will do well. We'll just have to wait until next year to see. If it doesn't, you can still blame the Republicans like always.

DON W SOUTH

Mount Vernon, OH

#4 Jan 10, 2013
kama sutra 69 wrote:
Why haven't the topix economic geniuses commented on this one? Fox not give you any talking points yet?
Fiscally responsible democrats will be the end to the Republican Party.

Arnold was really a liberal. Just a bad one.
Pollster

Bucyrus, OH

#5 Jan 10, 2013
Bellefontaine Forum wrote:
<quoted text>You mean like Reuters gave you your talking points on this, genius.
What's there to talk about concerning your link? Sounds like he has a budget proposal. Maybe it will do well. We'll just have to wait until next year to see. If it doesn't, you can still blame the Republicans like always.
Are you talking about a legitimate verifiable statistic? If it really happened it's not a talking point.

Since: Sep 11

Location hidden

#6 Jan 10, 2013
Pollster wrote:
<quoted text> Are you talking about a legitimate verifiable statistic? If it really happened it's not a talking point.
I'm talking about the first separate sentence, then the first paragraph. Sounds like a campaign speech. We'll see if it works, then return for comments.
Pollster

Bucyrus, OH

#7 Jan 10, 2013
Bellefontaine Forum wrote:
<quoted text>I'm talking about the first separate sentence, then the first paragraph. Sounds like a campaign speech. We'll see if it works, then return for comments.
ok, I was just wondering

Since: Oct 10

Haines City, FL

#8 Jan 11, 2013
Brown balanced the budget on the backs of its citizens with higher taxes. To his credit, he also reduced spending. While he is to be commended for seeking balance, CA still has some of the highest taxes in the nation, is considered one of the worst states to do business in and many have left or are already leaving. Much of this "balance" is based on projected revenues from the tax increase which most often fall short so while he may have a long term fix, CA is loaded with tax and spend Democrats and holding them a bay for an extended period is really doubtful. Add to a bad business growth climate in this state and I wouldn't be bragging to soon. No one is California dreamin' yet. Risk takers are not going to take risks in a highly taxed, heavily regulated and wacko state like CA. Look for the south to continue to develop

Since: Oct 10

Haines City, FL

#9 Jan 11, 2013
PS - to give Brown credit, he cut many social programs.
The Oracle

Lima, OH

#10 Jan 11, 2013
Brown is a kook and California is a mess.

Good luck Governor Moonbeam.

“ +IAN, AMERICAN, OHIOAN, BELLE”

Since: Sep 11

Bellefontaine, OH

#11 Jan 11, 2013
DON W SOUTH wrote:
<quoted text>
Fiscally responsible democrats will be the end to the Republican Party.
Arnold was really a liberal. Just a bad one.
I didn't realize that there was a good one!!!

“ +IAN, AMERICAN, OHIOAN, BELLE”

Since: Sep 11

Bellefontaine, OH

#12 Jan 11, 2013
Governor Brown served two earlier terms as Governor of California from 1975-1983. He governed as a budget cutter & a fiscal conservative then and, hopefully is again. As a conservative, I wish him well. However, time will tell. It looks like his figures are only projections that will need to materialize before the projections become fact.
Trillion Dollar Baby

Bellefontaine, OH

#13 Jan 11, 2013
Obama is going to fix all our money woes with minting a single Trillion dollar coin and depositing it in the bank of Beijing.

Read it on MSNBC, baby!

“Listen to Jazz Music”

Since: Mar 09

Bellefontaine, OH

#14 Jan 12, 2013
thud333 wrote:
Brown balanced the budget on the backs of its citizens with higher taxes. To his credit, he also reduced spending. While he is to be commended for seeking balance, CA still has some of the highest taxes in the nation, is considered one of the worst states to do business in and many have left or are already leaving. Much of this "balance" is based on projected revenues from the tax increase which most often fall short so while he may have a long term fix, CA is loaded with tax and spend Democrats and holding them a bay for an extended period is really doubtful. Add to a bad business growth climate in this state and I wouldn't be bragging to soon. No one is California dreamin' yet. Risk takers are not going to take risks in a highly taxed, heavily regulated and wacko state like CA. Look for the south to continue to develop
I would suggest much of the loss of unemployment is due to Mexicans going back to Mexico and, others moving out of California to Arizona, Oregon and Washington.

I would hope his state's economy gets much better because, I might be able to pick up some work.

Since: Feb 09

Location hidden

#15 Jan 12, 2013
kama sutra 69 wrote:
Why haven't the topix economic geniuses commented on this one? Fox not give you any talking points yet?
It is a PROJECTION. The California Department of Finance does not have a very good record with their projections, as a simple search of news articles over the past 10 years CLEARLY show. They have not been right once!

For the projection to become a reality, there are a few things that must happen:

1. Tax revenue must meet expectations (which they have not since Brown took office)
2. California's unemployment rate must drop from 9.6% to 8.7%
3. The state legislature cannot force increased social spending on programs that have been cut....and they are trying to restore those cuts.
4. Consumer spending must remain constant.

Of course, we cannot ignore federal policy role in all of this. Federal policy could throw off those projections real fast with the click of a pen.

To sum it up, there is NO surplus as of right now. The surplus only exists in a projection and the stars must line up perfectly for it to become reality. Only time will tell if they do.

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