Tuesday, November 16, 2010

Hot topic: California state budget

This from a reader:

Gov. Arnold Schwarzenegger has called a special session Dec. 6 for the incoming legislature to deal with a new $25 billion state budget deficit predicted over the next year and a half. This is on top of the $21 billion budget hole that kept lawmakers from reaching a deal on a state budget for 100 days.

Educated Guess blog reviews the Legislative Analyst's Office report that includes the potential impact of the shortfall on Califonria public schools. "The only good news is that the 2011-12 budget should be rock bottom, after which revenues for schools will begin to climb slowly again."



  1. On what basis does the author conclude that 2011-2012 will be the worst? There is little indication of any major recovery and many of the deferred payments will be deferred again without increased revenue brought on by a recovery of substance - meaning even lower budgets. By recovery I mean one that was not just the government borrowing to hire or government workers, but real sustained growth in the private sector. Despite its dark tone, this article is indulging in optimism. We could have several more years of even worse budgets as California goes bankrupt. Have you hear the desperate advertisements to buy California bonds? Nobody wants to invest in them and unless we can borrow, we can't pay the bills. Head east young man.

  2. The lack of interest in funding is representative of the progressive establishment's view that money grows on trees. It is no wonder there is no fiscal discipline.