Jerry Brown says state faces first budget deficit since 2012 – a $2 billion deficit

government spending

Why is it always a revenue shortfall and never a spending problem? That’s a rhetorical question, of course.

From SFGate: Lagging revenues have put the state’s financial outlook on shaky ground, and Gov. Jerry Brown warned Tuesday that California could face a $2 billion deficit if spending is not tempered.

In unveiling a $122.5 billion general fund budget proposal for the 2017-18 fiscal year, Brown said the projected deficit can be eliminated and he proposed moves that might make the Democrat-controlled Legislature cringe.

Among them are:

  • Spending $2 billion more on public schools and community colleges in 2017-18 instead of $3.8 billion more by adjusting the Proposition 98 formula that guarantees funding. K-14 would receive $73.5 billion in the next fiscal year under the proposed budget.
  • Eliminating last year’s one-time allocation of $400 million for affordable housing that was never spent.
  • Eliminating last year’s one-time allocation of $300 million for state building modernization that was never spent
  • Pausing rate increases for child care and freezing Middle Class scholarships so that no new students receive them. Also freezing state spending, including money that implements new legislation.

“We are in very uncertain times,” Brown said. “We are subject to a lot of unpredictability … I think it is time for precaution.”

Budget negotiations in recent years have been characterized by Brown’s insistence that the state be cautious in its spending, with his January proposal providing a starting point for six months of negotiations with Democrats who have in previous years urged more spending on social programs.

This is the first time since 2012-2013 that the governor’s budget projected a deficit. The governor cited lower than expected revenue, which fell short of estimates in five of the past seven months. Despite that, revenues are up 3 percent overall.

Last year, Brown and legislative leaders reached a budget deal days before the June 15 deadline for the state Legislature to pass the annual spending plan. With that deal in place, Brown uncharacteristically did not use his authority to change the budget passed by the Legislature

The current budget totals $122 billion and bolsters the $6.7 billion rainy day fund. The current budget also sends $71.9 billion to K-12 schools and community colleges, the highest amount sent to schools under the state’s minimum funding guarantee. That brought the per student spending in K-12 schools to $10,643, which is up $3,600 since 2011-12.

Under the budget proposal for the fiscal year that begins July 1, Brown wants to expand the rainy day fund by another $1 billion.

State lawmakers have emphasized the need to address the state’s woefully dated roads and bridges. In his budget, the governor pushed the same transportation package he introduced in 2015, which provides $4.2 billion each year to address the state’s highway system, much of which was built between the 1950s and early 1970s.

Brown’s transportation plan includes a new $65 highway user fee paid by California drivers plus higher taxes at the gas pump.

Population increases in recent decades along with more trucks on the roadways due to increased international trade moving goods from the state’s ports has placed additional pressure on the aging highways. At the same time, fuel-efficient cars have become more popular, leading to a decrease in the amount of the taxes collected at the pump to pay for the transportation infrastructure.

DCG

Advertisements

10 responses to “Jerry Brown says state faces first budget deficit since 2012 – a $2 billion deficit

  1. Surprise! – Not!
    And after how California’s Demonrats voted on Nov. 8, we can be sure the state deficits will get even bigger.

    Liked by 1 person

  2. since jerry’s tunnels to so Kalifornia and his fast train to nowhere aren’t bringing in enough federal dollars, he’ll have to dream up some other crazy project to bring in federal dollars. Maybe we ought to have a contest to see what crazy idea jerry might concoct next! (but if Kalifornia secedes from the US, it won’t have that gravy train any more).

    Ideas: tunnel to Europe? Skyscraper to the moon? Giant solar panel over Kalifornia?

    Liked by 1 person

  3. Wal, Gee Whillikers! Who’d a thunk that would happen? All them rich Liberals love to pay taxes don’t they?
    Get a clue, Moonbeam. One of the largest demographics moving to Texas is people from California. Reason: to escape taxes. Your Deficit problem is gonna get a lot worse, you’re losing your Taxpayers and getting Illegal Aliens. God luck with that, Doofus. Where did these guys learn “economics”/ Mr. Rogers Neighborhood?

    When I moved to Texas from The Peoples Democratic Republic of Florida, I told my new friends, “When the Yankees move to Texas, take their money, but don’t let them vote for at least 5 years! Or they will elect the same type of “Promising Johns” that ruined where ever they left.” Big City Californians are worse than Big City Yankees, as soon as they get what they want, they want to stop development, hunting, fishing, farming, ranching, 4×4 pick-ups, guns, and “the oil bidness” so normal Texans can’t make any money or have any fun.

    Idiots come here and pass a law against cow farts, there’s gonna be a shootin’ war.

    Liked by 1 person

  4. Where “stupid” costs money, they must be pretty dumb…$2 billions dollars dumb.

    Liked by 1 person

  5. Pingback: KOMMONSENTSJANE – HOLLYWEED WILL MAKE UP THE DIFFERENCE | kommonsentsjane

  6. Sorry, Jerry, you own it. You have stupidly accepted every Tom, Dick and Harry and have given them unreasonable amounts of social services.
    Suck it up and admit it you are a piss poor leader and Ca. Deserves what they get for electing you into office yet again.

    Liked by 2 people

  7. I wonder what Trump is going to do when they start screaming for him to sign a financial bailout bill?

    You just know it’s coming.

    LOL – I hope he tells that goober Moonbeam to go pound sand.

    Liked by 1 person

    • Dave—–as a Californian who moved here from elsewhere…even if it hurts me…I.HOPE TRUMP TELLS CA TO POUND SAND on the fantasy of “Sanctuary Cities,” “Dreamer Act,,” & so on…The Federal Gov’t “Trumps” states no matterr what. READ the Constitution….”immigration” (legal or NOT) is the business of CONGRESS of USA….NOT THE STATES… Eric Holder—-collect your CA taxpayer- funded, rich check, and tuck your tail between your legs—–and GO HOME!!!!!!! Bunk up in Ferguson, MO, or someplace like THAT…..Try to collect a big–boy salary from THEM!!!!

      Liked by 1 person

  8. Stop letting illegals work, those who employ them should Ser e time and stiff fines, m no illegals should collect any government assistance and get rid of the evil sanctuary cities. Americans would have jobs and pay taxes, and not be on any assistance, and the drugs and crimes these illegals bring in would be fewer, by putting them in prison and deporting them. I pray all Sanctuary cities are bulldozed to the ground in AMERICA. Tired of supporting illegals when we can’t help our own citizens. STAND UP AMERICA FOR AMERICANS.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s