Ok, so…….where exactly are the cuts in this new budget?

I only asked because I am a little confused.  If you read the LAO’s analysis in the voter pamphlet about the "budget solutions" that are leading to the need for the May election, it says that the budget solutions included (1) $15 billion in spending reductions; (2) $12.5 billion in tax increases; (3) $8 billion in federal funds; and (4) $5 billion in borrowing from the lottery.  We also know that another $1 billion is coming from redirecting funds from health programs and the First Five program, all to solve an approximately $40 billion difference between the baseline spending (what the state wanted to spend) and projected revenue (what the state expected to collect in taxes).

Now, we know that tax increases, borrowing, redirecting money from other accounts and federal funds are all designed to avoid having to cut the base of any program.  These are "revenue enhancements" specifically designed to avoid "deep and painful cuts in essential state services," like free health care and education to illegals and free abortions to teenagers, and six figure salaries to life tenured bureaucrats (as well as extraordinarily large retirements), things that, of course, the people of the state of California cannot live without, and, if they were actually cut or reduced, would cause the death of senior citizens and young children throughout California.  I can see how we wouldn’t want to cut these things, but leaders just have to make tough decisions.  If we reduce a $150,000 a year bureaucrat’s lavish pension, and some senior citizen dies because of that, sometimes that’s just what happens in the real world.  It’s tough, but it has to be done.

But wait.  We don’t have to do that.  Obama has come to the rescue.  The state has scored $17.5 billion in federal welfare in the most recent stimulus package.  $17.5 billion is $9.5 billion more than they thought they were going to receive when they asked the people of the state of California to reach deep into their pockets for a $12.5 billion tax increase. After reading the stories on this windfall, however, I now find out this federal bailout is just not enough to defer any of the requested tax increases.  OH NO!!!! Those cheap feds just didn’t want to bail out the state’s tax payers.  I was so upset.  Obama just didn’t do enough to help out all those Californians who voted for him who must now pay higher taxes.

But wait again.  Now I am confused.  The proposed budget shortfall is $39.5 billion.  With the $17.5 billion in federal bailout money, the proposed solutions are now $49 billion, and we know that taxes are not going to be reduced because this extra $9.5 billion is just not enough to defer any tax increase at all.   I know I Iearned math in public schools, but that was before the teacher’s union took it over, and turned our children into their own private cash cow.  $49 billion is $9.5 billion more than $39.5 billion, and if the legislature and the Governor don’t reduce our taxes, just what is going to happen to that extra money?

That’s right.  No more cuts in spending.  The final part of the budget scam is now complete.  By the time this is all over, the entire $15 billion in alleged cuts will be covered by the feds, the state will have a whole lot more in new taxes.  Proposition 1A, if it really is enacted, will provide about as much of a fig leaf to the business end of the state’s rape of the taxpayers as the emperor’s new clothes did to his.  No spending cuts, no spending cap, and $12.5 billion in new taxes.  I have to admit, I am now really impressed with the negotiating ability of the Republicans who voted for this budget deal.  They really helped us out.

This entry was posted on Sunday, March 29th, 2009 at 12:00 am and is filed under Blog Posts.