Tuesday, November 11, 2008

California finances in bad shape!

California is $28 billion in the hole:

California’s budget woes, which project the current budget is running more than $11 billion in the red, could be seen as the good old day if nothing changes, warns the nonpartisan Legislative Analyst’s Office on Tuesday.

California’s struggling economy signals a major reduction in expected revenues and when combined with rising state expenses, the state will need $27.8 billion in budget solutions over the next 20 months, says the LAO.

“The state’s revenue collapse is so dramatic and the underlying economic factors are
so weak that we forecast huge budget shortfalls through 2013‑14 absent corrective action,” it says. “From 2010‑11 through 2013‑14, we project annual shortfalls that are consistently in the range of $22 billion.”

The LAO says it is imperative that the Legislature attack the budget problem ggressively, making permanent improvements to the state’s fiscal outlook.

“If the state has any hope of developing a fiscally responsible 2009‑10 budget, it must begin acting now,” it says.


Rob Dawg said...

Beat me by 7 minutes but I had a pretty picture.

Bakersfield Bubble said...

What do you want to bet this grows to $35 billion or more? Will they "steal" the money from PERS to make up the difference?

Rob Dawg said...

In a way it has grown to $35b. The Federal receiver is grabbing $8b not counted and there is likely $2-$4 billion in CalPERS and teacher contributions for minimum reserves and there's the $10 billion fantasy choo-choo bond.

Comrade Misean is Dope said...

Aw come on guys. This state is gonna rocket back to health once L.A.'s sales tax rate hit 10.25%.

Imagine all the shopping that will engender...BEFORE the tax hits.



Rob Dawg said...

Internet shopping is gonna explode. Go long DHL... oh... wait.

Anonymous said...

If they're going to "steal" from PERS, they better hurry up. Check out today's LA times story on PERS huge losses in RE investments. Newhall Ranch no less (wonder how they missed out on McAllister).

Richard said...

At what point will Calfornia be considered bankrupt?

I would love to see cuts made in higher education.

bob said...

the liberals have been saturating us with bond issues every election time in order to keep spending above our means....its their favorite game....it also is a " create jobs " gimic for the big Dem unions.....