Friday, December 17, 2010

Is Jerry doing the Doomsday?

Yes says Dan Walters:
Gov.-elect Jerry Brown appears poised to ask voters next year to raise taxes, or at least continue some temporary taxes that will soon expire, or see vital public programs, such as the schools, suffer irreparable harm.

Ever since his election last month, the once and future governor has been hinting that he'll ask voters for additional state revenues to partially close a whopping budget deficit, now approaching $30 billion during the next 18 months.


Read more
The strategy has a problem. I would speculate that 30% of property taxes are now delinquent and most of those going to collection agencies and about 15% of us are unemployed. The Doomsday strategy is a short path to bankruptcy.

The risk?
Were Brown's doomsday strategy to fall short, he'd be stuck with an even worse budget mess and virtually no option other than following through with deep spending slashes in schools and other public services.
Dan Walters is the California bankruptcy watcher in Sacramento.

No comments: