Though the gradual trend toward budget shortfalls was expected when lawmakers and Gov. Gavin Newsom crafted a state budget in June, the large supply of extra cash — equal to almost 20% of all current-year spending out of California’s general fund — is a surprise, Legislative Analyst Gabriel Petek said.And as for deficit solutions, remember that Democrats hold supermajorities in both legislative houses.
“We’re in the middle of a pandemic,” he said. “There’s high unemployment. I don’t expect them to allocate a lot of political capital to solve a future problem, but it would be prudent to start making plans.”The state’s economy “experienced a quicker rebound than expected,” Petek’s report reads. “While negative economic consequences of the pandemic have been severe, they do not appear to have been as catastrophic from a fiscal standpoint as the budget anticipated.
The stock market unexpectedly became robust, recently hitting record levels, Petek notes. That provides the state with hefty taxes on capital gains — unlike in a normal recession when that revenue stream slows to a trickle.And the federal government kicked in $15 billion for the state, cities, counties and the unemployed, the Finance Department says. That was a big boost.
Voodoo economics...
Politicians can’t help themselves. They should give the money back to the taxpayer
Scumbag
👁️📞🔱👑🔥🏴☠️🆘🛎️🛂Big secrets are on the way.