Originally Posted By Darkbeer <a href="http://www.montereyherald.com/mld/montereyherald/news/13185379.htm" target="_blank">http://www.montereyherald.com/ mld/montereyherald/news/13185379.htm</a> >>SACRAMENTO - California lawmakers won't have to worry about a multibillion budget deficit next year for the first time in four years thanks to an unexpected jump in tax income and ongoing spending cuts, according to a report released Wednesday. But Legislative Analyst Elizabeth Hill tempered the good news with a warning that the state has not solved its long-term spending problems and warned that big deficits will return in 2007-2008 unless additional steps are taken. "The state has to keep its foot on the gas peddle of getting its fiscal house in order," Hill said at a news conference at her office near the Capitol. "We are not out of the woods yet and those operating shortfalls are very important." The report from the nonpartisan Legislative Analyst stands in sharp contrast to a prediction the office made in July that the 2005-2006 fiscal year will generate a shortfall of at least $6 billion. Now, a combination of factors have drastically changed the outlook. First, an improving economy will produce billions more in personal and corporate tax income both through the end of this fiscal year and next. Second, spending cuts imposed in the current budget are also reducing the problem. Hill said that the state will have $5.2 billion more than expected at the end of next fiscal year, which will more than cover a project shortfall revised downward to $4 billion and leave a reserve of $1.2 billion.<<
Originally Posted By cmpaley What the the article left out is that after 2010/11, if nothing changes, the state will grow out of its structural deficit problems. Seems to me that holding the line on spending (keeping it to the rate of with inflation and population growth) and minor revenue enhancing measures as well as utilizing "pay as you go" for new programs will be the ticket for getting California back on track.
Originally Posted By StillThePassHolder "The state has to keep its foot on the gas peddle of getting its fiscal house in order," "Gas peddle"? They're selling gas? Who proofs this copy, me? gas pedal gas pedal gas pedal
Originally Posted By FaMulan Yeah, but that still won't stop Nissan from moving its headquarters to Tennessee next year. Costing the state 1300ish jobs.
Originally Posted By StillThePassHolder Call me delusional, but wasn't Arnold Schwarzeneggger all about getting companies like Nissan to move here? Not the other way around?
Originally Posted By StillThePassHolder "That was part of the platform he ran on, if I recall correctly." You recall correctly. Ironically, he's over in China right now, helping them create jobs.
Originally Posted By ElKay This article proves that Arnold was wrong to conduct a special election in order to try and place a very cumbersome budgeting proposal before a public not very well versed in complex financial matters. Instead of spending most of the summer and fall on another meaningless campaign, he should have used his persuasion skills this past year and try to find a way to both control spending and equitably fund state functions, like education. Had he tried and failed, he then should have tried the propostion route for the June, 06 regular primary election. Given what we know now, it would have shown that it wasn't the emergency Arnold tried to scare the California voters with. Well over a year ago, Arnold could have negociated with the Dems on the vehicle registration fees that were set to return to their normal (higher) rate in exchange for real action on his budgetary reform proposals. That $4 billion in extra revenues would have been a cushion that would positively enhanced the inproved state of the budget this fiscal year. Instead, blindly following Bush's anti-tax idealogy, California suffered through a whole year with seemingly unnecessary big cuts and additional borrowing that will hang over the state for decades in good times or not. Due to his inexperience and blind following of GOP idealogy, the state suffered a whole wasted year of rancor and ineffective leadership.
Originally Posted By woody I still wanted all the propositions to pass. This is a miracle if there ever was one. There's nothing responsible about waiting for this to happen. I credit Bush for the improving economy. Let's make the tax cuts permanent in the Federal level.
Originally Posted By FaMulan LOL. Channel 7, by any chance?<< Yep, then my husband and I ran off to dinner.
Originally Posted By StillThePassHolder "I still wanted all the propositions to pass. This is a miracle if there ever was one. There's nothing responsible about waiting for this to happen." A miracle? You're joking, right? This is all due to the re-fi boom. Period. Countless homeowners are going through re-fi's, getting their homes re-appraised, which in turn accounts for the increase in property taxes. This could have been seen a mile away.
Originally Posted By woody "Countless homeowners are going through re-fi's, getting their homes re-appraised, which in turn accounts for the increase in property taxes." Refinancing your home does not increase property taxes. DUH!!! Property taxes will only increase when a house is sold or when a house receives improvements. You'd better start over. I won't help.
Originally Posted By seanyoda STP, if my memory serves me correctly, under Jarvis-Gann, a property's value is not re-accessed by the county until the title changes hands. Thus, refinancing has zero influence on property taxes.
Originally Posted By woody StillThePassHolder: You probably don't own property in California. I recently refinanced with no change in property values. What else do you not know? FACTS!!! <a href="http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf" target="_blank">http://www.boe.ca.gov/proptaxe s/pdf/pub29.pdf</a> "Disparities in Assessed Value Under Proposition 13, similar properties can have substantially different assessed values based solely on the dates the properties were purchased. Disparities result wherever significant appreciation in property values has occurred over time. Longtime property owners, whose assessed values generally may not be increased more than 2 percent per year, tend to have markedly lower tax liability than recent purchasers, whose assessed values tend to approximate market levels."
Originally Posted By ElKay How's this for an reason why California's budget shortfall got a boost all of a sudden: Chevron Headquarters 6001 Bollinger Canyon Rd. San Ramon, CA 94583, U.S.A. 'nuff said.
Originally Posted By Beaumandy No Elkay, the tax cuts produced more jobs and more revenue. Supply side economics at work compared to your socialist pipe dream once again shows Bush and Reagan were right.
Originally Posted By TomSawyer Bush and Reagan boosted the economy by spending a bunch of government money.
