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Yachtie -> And the hole gets deeper (5/13/2012 4:57:33 AM)
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LOS ANGELES — The state budget shortfall in California has increased dramatically in the last six months, forcing state officials to assemble a series of new spending cuts that are likely to mean further reductions to schools, health care and other social programs already battered by nearly five years of budget retrenchment, state officials announced on Saturday.
“We are now facing a $16 billion hole, not the $9 billion we thought in January,” Mr. Brown said. “This means we will have to go much further and make cuts far greater than I asked for at the beginning of the year.”
[...] he aggressively accounted for the steps he said he had taken to try to scale back a $26 billion deficit he found upon taking office. And he urged viewers to back an initiative he is putting on the November ballot that would increase sales taxes by 0.25 percent and impose an income tax surcharge on wealthy Californians to try to stave off more cuts.
So Cali has an increasing shortfall. Gotta pay for it. But just what is being paid for in the first place? Why, those very things that created the shortfall. So just how does one go about paying for it? Why, the same way its been paid for for years. Problem is, people will only go so far till they vote with their feet. For those who cannot, enjoy the sales tax increase and cuts to the trough.
In the short run Cali can do what it says it needs to do and therefore project a savings against the shortfall. Problem solved. At least on paper. But, why isn't it the $9b thought in January? Why doesn't what's on paper equal reality?
Here's a bit of reality for Cali. I foresee rising shoe sales. That should help a little, or not.
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