A budget land mine is in the path of California's fiscal future. It's been there for several months waiting to go off on schedule in January. It's the budget trigger that could mandate up to $2.5 billion in additional state spending cuts, most of which would be borne by already diminished K-12 education funding.You can't have big government unless you have flexible government. Now we have to deal with thousands of panicked union bureaucrats, and who knows what havoc they will sow. The California solution remains bankruptcy, then subdivision.
Gov. Jerry Brown's and the Legislature's hope was that somehow an additional $4 billion in previously unanticipated capital gains tax revenues would appear in time to defuse the trigger.
But as the state's weak economy continues without significant recovery in sight, it is, or should be, clear that billions of extra tax money is not forthcoming.
Adding to the state's fiscal woes, the California Supreme Court stayed legislation that dissolved California Redevelopment Agencies. That means the state won't be able to grab $1.7 billion from redevelopment districts.
The money that wasn't there in June, when the budget was passed, is still not there today and is not likely to be there before the December deadline on deciding whether to deploy the trigger in January. Daily News from Whittier California
Wednesday, October 12, 2011
Government self crowding in California
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