California Controller John Chiang announced today that the budget proposed by the Democrats was not balanced and that therefore he would stop paying the legislature until a balanced budget is voted on. Mr. Chiang stated, “The numbers simply did not add up.” He said the budget had $1.86 billion more in spending than in revenues.
As you can imagine, Democrats in the legislature are livid. Democrats accused him of grandstanding and playing for a higher office. There are rumors of a lawsuit (I’m sure that would go over really well with Californians).
Frankly, Democrats should realize that the budget they proposed was yet another smoke and mirrors budget. Mr. Chiang included revenues in the proposed budget that were likely unconstitutional (he assumed all of the revenues would occur). The true budget deficit was significantly greater than $1.86 billion — probably $5 billion or more.
So will Democrats finally agree to stop kicking the can down the road, or will there be yet another episode of As the Budget Churns? Being a cynic, I’m voting for the soap opera to continue. Expect a lawsuit to be filed, and nothing to happen for more weeks. The losers, of course, are California taxpayers.
Tags: 2011CalBudget