Best Short Explanation of the CA Defecit I've Seen

[On the Road]

from Economists for Dean:

...California's Budget is just under $100 billion this year, and determined without much wriggle room: 40% is mandated for spending on K-12 education by Proposition 98. Almost all of the rest is federally mandated spending on programs including health and welfare. Only 2.5% of the budget is discretionary* -- available for cuts and reapportionment.

----snip

CA Personal Income Tax Revenue in $Billions:

Year __ Income Tax __ Change

1998-99 __ $30.9 __ 3.0
1999-00 __ $39.6 __ 8.7
2000-01 __ $44.6 __ 5.0
2001-02 __ $33.1 __ -11.6
2002-03 __ $32.4 __ -.6
2003-04 __ $33.6 __ 1.2

----snip

Because a lot of state spending is mandated as a percentage of revenues, such a large surplus would automatically raise required expenditures.... Governor Davis and his budget officers knew this was a one-time phenomenon and urged one-time only budget actions to avoid locking-in unsustainable tax cuts and program spending for years to come. "

Why aren't articles like this in newspapers or other parts of the media? It's not THAT difficult. This at least provides a starting point for addressing the problem.

OOH, Arnold's whole message was "no one understands the budget. I will hire a team of consultants to understand the budget for me."

*emphasis mine

[barbaraann]

1. So, basically the people should have recalled themselves for

trying to run a government by initiative and destroying their state in the process.

The Golden State - R.I.P 1978 (Passage of Prop 13 and the beginning of a era of government by middle-wing radicalism)

[On the Road]

2. Yeah, This is a New Twist for Me

It doesn't seem like a smart way to run a state. And it doesn't seem like Davis did a good job of communicating.

Although when Bustamente announced, his proposal for filling the gap seemed very knowledgable.