The analysis is out and California has another Bad Budget™. Let’s see what’s in this “Let’s Defer to Tomorrow What We Don’t Want to Address Today” piece of cheese:
- The budget assumes $5.4 billion in federal funds. That seems fine until you realize that only $1.3 billion is likely to make its way here. Well, that’s only a $4.1 billion difference.
- The budget assumes that tax revenues will be higher than anyone in Sacramento (other than the people writing the budget) have projected. Think of a rosy forecast, and then think best case of rosiness, then…well, you get the idea. Let’s add another $2 billion of overage.
- There’s cuts to state workers and schools. Well, that might be good except the way the budget is written these cuts must be paid back. That’s probably another $5 billion or so.
- The budget assumes state workers will agree to major cuts in pensions. Well, there’s probably no choice in that regard–the cuts pretty much have to happen. Still, what if they don’t agree? Contracts are contracts.
And the pension issue is particularly ugly, as Steven Greenhut reported in today’s Register. My educated guess is that the new governor will be facing a $30 billion deficit when he or she takes office. That’s a lot of money.
Tags: 2010CalBudget