California To Have A Budget Surplus

[108]

California's budget really didn't have many problems until the crash of 08 that left nearly every state reeling with a lack of revenue


Link

SACRAMENTO, California (Reuters) - California's budget deficit is gone after years of financial troubles, Governor Jerry Brown said on Thursday, proposing a state budget plan that would raise spending on education and healthcare, boosting total expenditures by 5 percent with a surplus remaining.

But Brown vowed to push back at legislators eager to increase spending even more by restoring the billions of dollars to social services and other state programs cut in lean years.

"I am determined to avoid the fiscal mess that the last few governors had to deal with," Brown told reporters as he introduced his budget plan for the 2013-14 fiscal year beginning in July. Leading Democratic legislators agree with his plan.

California's economy melted down with the housing market, slashing the state's revenue, but it is finally on the mend. For years the state's leaders have tackled budget deficits with a combination of deep cuts and accounting gimmicks. The projected surplus is now the latest surprise.

[myamiG8R]

fine... i still think we should let them be their own country... trade them for puerto rico, so we don't need to change the flag... or make canada a state...

[surfn1080]

So he finally put his foot down to increase spending. Lets see of that's what actually happens as with government, they always spend more then planned.

[Dreamliner]

I like the idea of adding Canada. It would make the US more conservative, for starters.

[ATLitigator]

you missed the last line and a half.......see..."...accounting gimmicks. The projected surplus is now the latest surprise."

they slashed their deficit and PROJECT a surplus with ACCOUNTING GIMMICKS

what did they do about all those inflated pensions...?

[108]

Originally Posted by ATLitigator

you missed the last line and a half.......see..."...accounting gimmicks. The projected surplus is now the latest surprise."

they slashed their deficit and PROJECT a surplus with ACCOUNTING GIMMICKS

what did they do about all those inflated pensions...?

i read that as them talking about the past

For years the state's leaders have tackled budget deficits with a combination of deep cuts and accounting gimmicks.

[northandsouth]

Originally Posted by 108

California's budget really didn't have many problems until the crash of 08 that left nearly every state reeling with a lack of revenue


California's economy melted down with the housing market, slashing the state's revenue, but it is finally on the mend. For years the state's leaders have tackled budget deficits with a combination of deep cuts and accounting gimmicks. The projected surplus is now the latest surprise.[/i]

Sounds like the "latest surprise" might be more from "accounting gimmicks" than actual economic growth.

And "creative accounting" is a sure-fire path to long term economic stability.

[G8trGr8t]

creative accounting and massively underfunded pensions lie beneath the surface of the gimmicks

[rivergator]

there you guys go. If a liberal state balances the budget, it must be cheating.

[northandsouth]

Originally Posted by rivergator

there you guys go. If a liberal state balances the budget, it must be cheating.

Well, are you asserting that their current budget situation is the result of revenue growth piggybacked off an expanding economy?

If, as the opening contribution stated, the budget surplus is from massive cuts and, and I quote, "accounting gimmicks" what the hell are reasonable people supposed to conclude?

I did not use the word "cheating." You interjected that presumption. Falsely too.

Care to re-enter the actual discussion and try again?

[rivergator]

Originally Posted by northandsouth

Well, are you asserting that their current budget situation is the result of revenue growth piggybacked off an expanding economy?

If, as the opening contribution stated, the budget surplus is from massive cuts and, and I quote, "accounting gimmicks" what the hell are reasonable people supposed to conclude?

I did not use the word "cheating." You interjected that presumption. Falsely too.

Care to re-enter the actual discussion and try again?

No, those are what they did for years in order to achieve a balanced budget. Now they don't have to resort to that. That's what the story said.

[oragator1]

Maybe I am missing something, but this isn't the year end tally, this is his projected budget? Can we see the budget actually prove correct before claiming they are balanced? Not saying it won't be, but politicians and math aren't always the best of friends.

[rivergator]

Originally Posted by oragator1

Maybe I am missing something, but this isn't the year end tally, this is his projected budget? Can we see the budget actually prove correct before claiming they are balanced? Not saying it won't be, but politicians and math aren't always the best of friends.

yes, this is a projection.

[northandsouth]

Originally Posted by rivergator

No, those are what they did for years in order to achieve a balanced budget. Now they don't have to resort to that. That's what the story said.

Do you even understand what accounting is? And how it works?

So they used tricks and gimmicks to bury liabilities from the past instead of actually paying for the expenses and now that has resulted in a doctored financial statement that allows current revenues to be expended on current projects and programs instead of fulfilling legitimate obligations.

I have some experience here, having worked as a consultant to the government of Brazil since 1998. Brazil tried this same trick.

Again, I ask you. Are you asserting that the current budget situation in California is the result of an expanding tax base the result of an expanding economy? Simple question. You may find the answer not to be so.

[bluelang]

California's going crazy with construction/manufacturing boom right now.

https://www.google.com/search?q=cali...a&channel=fflb

If government can be 50% disciplined they should have sufficient revenues to run a surplus over the next few years.

[GatorNorth]

Originally Posted by myamiG8R

fine... i still think we should let them be their own country... trade them for puerto rico, so we don't need to change the flag... or make canada a state...

california has its problems but trading away the world's 7th or 8th largest economy for mostly frozen, uninhabitable tundra or an island of unskilled laborers is nuts.....and isn't puerto rico already a US territory? Not much to gain there.

[rivergator]

Originally Posted by northandsouth

Do you even understand what accounting is? And how it works?

So they used tricks and gimmicks to bury liabilities from the past instead of actually paying for the expenses and now that has resulted in a doctored financial statement that allows current revenues to be expended on current projects and programs instead of fulfilling legitimate obligations.

I have some experience here, having worked as a consultant to the government of Brazil since 1998. Brazil tried this same trick.

Again, I ask you. Are you asserting that the current budget situation in California is the result of an expanding tax base the result of an expanding economy? Simple question. You may find the answer not to be so.

do I know what accounting is? Why, yes, I think so.
As far as your claim

allows current revenues to be expended on current projects and programs instead of fulfilling legitimate obligations.

how do you know that's true?

[JerseyGator01]

In other news, it is projected by some that I might be the sexiest man alive by the end of the century.

[orangeblueorangeblue]

They cut their deficit.

It's by no means an actual surplus, though.

[northandsouth]

Originally Posted by rivergator

do I know what accounting is? Why, yes, I think so.
As far as your claim

how do you know that's true?

Your statements prior allow the inference you have no understanding of the long-term balance sheet implications accounting gimmicks reflect on the availability of current revenues to be spent on new projects.

My question was do you "understand" accounting, not that you "know what" it is as you assert last. Those are not the same thing.

As to your question of "how do (I) know that's true?"

Accounting gimmicks and tricks allow you to create a false and misleading balance sheet that allows you to divert current funds from legitimate prior obligations to more current projects. It is really that simple. My history of working with governments has given me much experience seeing exactly this.

You accused me of criticizing the use of "accounting gimmicks" on behalf of a "liberal state" based on nothing more than politics. Methinks you attempt to attack the messenger as a way of diverting attention from the message. Especially since you know nothing of me.

I will ask again, in the sincere hope you will at least offer your opinion if not a factually supported statement. Is it your assertion the current budget situation in California is the result of an expanding tax base the result of an expanding state economy there? Or is the the result of trickery and gimmicks?

Again, simple question. I cannot fathom why you refuse to answer. Unless you know the answer and that said answer will expose your earlier attempt as mere hackery.