Proposal by Democrats to Gut Proposed Reserves To Maintain Spending Levels Is Irresponsible
I am going to make two predictions – one about the California economy, and the other about the projections for future revenues coming into state coffers. Hold onto your seats here folks, because what I am going to say it going to shake the very underpinnings of your understanding of state finances
California legislative Democrats, are you reading this?
Prediction #1 – The recession is getting worse, not better. At a time when the public sector should be shrinking so that as much burden as possible can be lifted from a struggling private sector can recover and turn around the state (and national) economy – public spending is up. In Washington, D.C., Democrats seem to be crazy-drunk in their spending orgy, telling the public that more government spending is going to actually help the economy. Not. Of course, as the economy continues to sputter, this will continue to have a detrimental impact on the various taxes and fees that provide the income stream for state government. We’ve already seen a huge-drop off in state and local government revenues – and there is no reason that such a contraction will not continue has severe belt-tightening… Read More