California Governor Arnold Schwarzenegger has declared a fiscal emergency to address California’s deficit. Today is the first day of California’s fiscal budget year and it’s looking at a $24.3 billion deficit for the upcoming fiscal year, something it’s not allowed to have by California law.
Unlike the federal government, California must have a balanced budget. In fact most states must have a balanced budget. They aren’t allowed to have year after year of deficit spending, passing a massive debt to future generations.
They have to pay as they go.
As much as I’d like to blame Arnold Schwarzenegger for California’s mess, it’s not really his fault. California simply spends more money than it takes in. California generates most of it’s revenue from income taxes. When people are making less money, they are paying less in taxes. The second largest revenue source for the state is in income taxes. Once again, when people are making less money, they are spending less, which means they are paying less in sales tax.
The problem is, kids still need to be taught, poor people still get sick, and prisoners still need to be housed and fed. For the 2009-2010 fiscal year, California is looking at spending $47 billion for education, $21 billion for Health care and social services, and $8.5 billion for prisons.
Governor Schwarzenegger has a job I wouldn’t wish on my worst enemy.
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What a coincidence! Jimmy Buffet is my worst enemy, too.
Unfortunately, the great state of NY, with our morally bankrupt bunch of assclowns as a government, and the financial albatross that is NYC’s welfare rolls, is not trailing the Land of Fruits and Nuts (Antelope Valley excluded, of course) by much…