There goes the rainy day budget

Gov. Gavin Newsom’s proposal to use some of the state’s budget surplus to pay down unfunded liabilities in the state’s two giant government employee pension funds drew praise from an unexpected source – the Howard Jarvis Taxpayers Association, which otherwise had a low opinion of the new governor’s 2019-20 spending plan.Next fiscal year, Newsom wants to give $3 billion to the California Public Employees’ Retirement System. He also proposes giving up to $5.9 billion over four years to the California State Teachers’ Retirement System.

Gavin is spending it in anticipation of a major bailout on the way.   House sector and capital gains sectors have stalled, and I go through the list.  All the plots to arrive at a tipping point are happening on schedule.   The Venezuelans awaited the departure of Jerry, then they head straight for the spiral.

Capital gain taxes are zero, a major hole in the state budget has arrived.  Localities on the hook for much more than anticipated, a 5-7% budget increase for pension payouts. Taxes everywhere are flat.  The union squeeze is on, expect Gavin to declare a global warming emergency to raise union bailouts money.