California’s tax revenues were $1.2 billion higher than expected in January according to the Department of Finance. Democrats in the Legislature are unfortunately delusional about what $1.2 billion does to a $19.9 billion deficit. From the Mercury-News:
“There is a reasonable scenario by which we can get through this budget with minimal pain,” said Senate President Pro Tem Darrell Steinberg, D-Sacramento, noting “hopeful signs” in the state’s economy after four years of multibillion-dollar deficits.
“As difficult as this budget is,” Steinberg said “we’ve been through the worst of the worst.”
Meanwhile, the Department of Finance and the Legislative Analyst’s Office both note that things aren’t rosy. The Department of Finance has warned that something must be done before April or California will run out cash. The latest news hasn’t changed this. “It doesn’t lessen the urgency of taking action,” said H.D. Palmer, spokesman for the governor’s Finance Department.
I’m hopeful that Governor Schwarzenegger will follow the lead of New Jersey Governor Christie and cut, cut, cut. The problem isn’t revenues, it’s spending. But it appears that the Democrats who control the state legislature haven’t figured out that there really isn’t that much difference between a $19.9 billion deficit and an $18.7 billion deficit.
Tags: 2010CalBudget