The chart below tries to do this. It was put together from those resolutions passed last March. It provides the year-by-year totals (not ten years sums) needed to compare the two budgets. Says John.But what are the growth assumptions? If we intend to grow at a real 3.2% with the Senate budget, then the Ten Year rate is likely to be 4.5%. Interest payments will be about 5% of GDP after the roll over effects. If John is looking at lower growth rates, then we are screwed. Otherwise, this Senate spending chart does not cover the rate risk with expanded growth.
My claim is that the thirty Little Hoover States have not thought this thing out, and Californians should be worried.
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