$20 Billion Deficit a Possibility

After the three budget battles during the past 18 months, are Californians ready for the fourth installment of the state budget crunch next Spring? Like it or not, it’s coming.

This report notes that a $20 Billion is possible for next year. Democrats are already saying that nothing else can be cut; Republicans vow no new taxes.

The past few budgets have been balanced with smoke and mirrors. While there were some real spending cuts in the last budget, there were also the usual budgetary shenanigans. Several one-time moves (such as the increase in state withholding that began on November first) can’t be repeated. Or maybe they can; perhaps Democrats in Sacramento will propose that during 2010 we prepay our 2011 California income tax?

As long as we have state agencies trying to implement ridiculous regulations (such as the proposed regulations on LCD televisions), I’m certain there’s waste in Sacramento.

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This entry was posted on Sunday, November 15th, 2009 at 8:34 pm and is filed under California. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “$20 Billion Deficit a Possibility”

  1. What’s $21 Billion Among Friends? « Taxable Talk says:
    November 18, 2009 at 8:03 pm

    […] this week I wrote that California might be facing a $20 Billion Deficit. You’ll be happy to know I was wrong. The Legislative Analyst (LAO) released his official […]