A Nugget from the AP Wire
Some explanations for California’s ongoing budget problems
For the first time in four years, California does not expect a budget shortfall in the coming fiscal year, thanks to unexpected tax revenue pouring into the state this year.
But a $6 billion deficit is expected to return during the 2007-2008 fiscal year, with continued deficits anticipated for the next several years. Here are some of the central reasons why state government has so much trouble living within its means:
MANDATED SPENDING As much as 70 percent of spending in California’s budget is mandated through federal law, court order or voter initiatives. Even if lawmakers had the will to cut, most of the reductions would fall disproportionately on specific programs. Some of those smaller pieces of the budget pie are considered critical such as certain law enforcement, parks and recreation, and public health programs.… Read More