California’s $2.4 billion surplus

November 21, 2013

moneyCalifornia’s financial situation has improved and advisors are projecting a $2.4 billion surplus at the end of the fiscal year in June 2014, according to the Legislature’s budget advisors. [LATimes]

Gains from the economic recovery and stock market could provide more than $4 billion in unanticipated funds for schools and community colleges starting next summer, the report says.

“The state’s budgetary condition is stronger than at any point in the past decade,” the report released Wednesday says.

Even so, accounts dedicated to retirement benefits and pensions are underfunded by $135 billion.

 


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Russ J

Gooooood! …….Now give it back.


Rambunctious

If I don’t figure in my Electric bill…and my Food bill…and my Gas bill. Guess what? I have a surplus too! The surplus is not real but I sure will look good for the next election.


Pelican1

It’s interesting that such a surplus exists when we have so many “deferred maintenance” infrastructure projects awaiting funding, an education system that rates in the bottom 5 of 50 states, and just last year we were scrambling to find money to keep our state parks open.

Strange times indeed.


slomike

What a clutch of reflexive whiners. You seem to hate (democratic) government worse when it has good news. Get over yourselves.


isoslo

They should be projecting that the legislators who run California will spend this and more

to guarantee that the projected surplus will soon become another deficit.


kayaknut

Only our elected offficals can have accounts dedicated to retirement benefits and pensions underfunded by $135 billion, crumbling roads and bridges, and talk of more taxes and fees and claim everything is good with a 2.4 billion surplus. With this kind of math no wonder our state is in such sad shape.


Rawhide

Didn’t Moonbeam raise our taxes for this surplus to happen…?

Then there’s Cal Fires Rural Fire Fees / TAX…etc…


LIBERAL TAX, TAX, and TAX again…

You know all those rich people…lol…


unlisted

Yeap, and they balanced the budget.


Your beloved Republicans can’t do that at the state or national level.


kayaknut

Yeah, those silly republicans wanted to cut expenses, public union benefits and pensions, reduce the number of boards and useless departments, good thing the democrats are and have been for several years, in control of CA and got for the few of us who still pay taxes, our taxes raised instead, that will fix everything


unlisted

You might be right about Republicans WANTING to cut costs. I do, too. Unfortunately, Republicans cut taxes far faster than they cut spending, which doesn’t work very well. You need to cut both together.


For example, Arnold cut the car tax from what it had been since 1948 and immediately threw California into a deficit. (George Bush was even worse – he cut taxes and increased spending, which was a recipe for fiscal disaster. But that’s the federal budget.)


Now, back to California. You forget that we had Republican Governors for 24 out of the last 30 years. And remember, the Governor can not only VETO legislation that he doesn’t like, but he can also BLUE PENCIL parts of budgets that he doesn’t like. Plus, veto overrides are difficult and rare.


So tell me, how can Democrats be to blame for the state budget mess when Republicans were in the driver’s seat 80% of the time?????


kayaknut

Shame on Arnold for wanting to help those in the middle class with their vehicle expenses, not the ones who don’t register their vehicles. You forget no matter what party the governor has been the legislature has been controlled by the democrats for far longer than 30 years, and remember all legislation starts there and can just as easily die there. So the body that controls money, the legislators, has been democratic controlled and thus the driver seat, so yes they are to blame.


Sarah Bellum

KQED’s “The California Report” discussed the projected budget surplus this morning and stated that the governor supports putting it into a rainy day fund and paying down existing debt. Due to California’s sharply progressive income tax rate structure, revenues swing wildly with the capital gains/losses experienced by the rich.


abigchocoholic

Gains from the economic recovery and stock market could provide more than $4 billion in unanticipated funds for schools and community colleges starting next summer, the report says.

———————

I thought CA had a 40 billion debt?


This is govt. think. Run 30 years of deficits racking up 40b in debt and the first year you make 4b, rather than pay down the credit card, just spend it. In fact, spend it now while it’s just a projection.


SLOTECH90

And mean while, I defy you to find ANY major artery in this or any other CA County which is NOT being dinkled with by CALTRANS, et al.


unlisted

Do you consider the balance owed on your mortgage when you make your household budget?


I sure don’t. I figure the payments on the mortgage and then pay a little extra each month.


That’s exactly what Moonbean is proposing. He’s going to pay down some debt and put some cash away for a rainy day.