California govt: So, that budget surplus we mentioned? That may have been a fluke

posted at 6:01 pm on February 19, 2013 by Erika Johnsen

California’s currently super-liberal state government has been eight different kinds of excited about what they projected was going to come in as a budget surplus, exclaiming about how they’ve managed to buck the longtime trend of overspending and proving the haters wrong:

“Right now, in the next four years, we’re talking about a balanced budget. We’re talking about living within our means. This is new. This is a breakthrough. …

“I went up and down the state promising that we’d be good stewards of the people’s money and would they please add to it by the tax measure. We’re also not going to pay the game of spending money we don’t have.” …

“We have to live within the means we have; otherwise we get to that situation where we get red ink and then go back to cuts. So I want to avoid the boom and the bust, the borrow and the spend, where we make the promise and then we take it back.”

The only issue being that, on second thought, that surplus might not be as wonderful as they originally supposed; Gov. Jerry Brown’s budget office has a new report out cautioning that the $5 billion revenue bump in January might just be the result of an accounting anomaly and not any systemic budgeting victory. The LA Times reports:

The revenue bump was historic. But the question for budget experts was whether lawmakers could begin allocating the windfall toward government programs and tax breaks — or whether the money amounted to an accounting anomaly.

Brown’s budget office now advises in an official cash report that it is probably the latter. …

The report says the extra money was “likely the result of major tax law changes at the federal and state level having a significant impact in the timing of revenue receipts.”

I.e., in light of the still higher taxes on the wealthy for which the state voted in November, certain taxpayers were paying off portions of their bills early in order to get some of their income off of the books before the start of the new year — meaning that January’s surge will be offset by an April dip. Oh, how the optimistic budgetary cookies crumble, especially when you’re counting on a highly graduated tax system to not severely alter people’s financial behaviors. California has been hoping to make up for years of multibillion dollar budget shortfalls with Brown’s budgeting scheme, but as Reuters pointed out last month, it relies on the wealthier getting wealthier, as well as an improving economy and high-earners sticking around to pay those heightened taxes — none of which seem like particularly safe bets.

 


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Meanwhile in Texas

Sekhmet on February 19, 2013 at 6:03 PM

Only liberals could eff up a wonderland of plenty like California, what a shameful waste.

Bishop on February 19, 2013 at 6:04 PM

They said they had a surplus and someone believed them?

rrpjr on February 19, 2013 at 6:05 PM

Don’t try to save me…

… save yourselves.

Seven Percent Solution on February 19, 2013 at 6:08 PM

You know, the real upside to how the left’s policies drive governments into the ground is that the left’s politicians are generally completely incompetent.

If they were actually good at their jobs, they’d be better at hiding their failures rather than than highlighting them.

This is all according to plan; I’m glad my “let it burn” strategy of voting for Brown is paying off.

Nessuno on February 19, 2013 at 6:08 PM

least surprising headline evah.

rob verdi on February 19, 2013 at 6:08 PM

They said they had a surplus and someone believed them?

Not this Californian.

Bob's Kid on February 19, 2013 at 6:09 PM

They lied to the LIVs to push through Prop 30 and now we find out that the money stolen retroactively from the “rich” will not find it’s way to the schools as promised.

I’m shocked!

Now we find out that the surplus doesn’t exist at all and in fact is many billions in the red

I guess that’s what happens when you have “math-free zones” like Sacramento

Ditkaca on February 19, 2013 at 6:12 PM

The libs have been positively wetting themselves over Jerry’s “balanced” budget.

The rest of us have just been muttering “wait and see, wait and see” with our hands buried in our heads, wondering how these poor fools could believe it was so simple.

I hate to say it, but I’m really looking forward to the multi-billion deficit we’re gonna have, because these fools deserve it.

JEM on February 19, 2013 at 6:18 PM

Nice place to visit, but,…..

a capella on February 19, 2013 at 6:18 PM

As much as I enjoy seeing California hurt, all its pain does is force out the morons who ruined that state into other states like Nevada and Colorado so they can ruin them too.

Daemonocracy on February 19, 2013 at 6:19 PM

Only liberals could eff up a wonderland of plenty like California, what a shameful waste.

Bishop on February 19, 2013 at 6:04 PM

They have, since the 1960 US Census and Speaker Unruh’s gerrymandered reapportionment, ensuring DEMOCRAT control of the Assembly and Senate in Sacramento since the 1962 state election…

Own it DIMocrats/Liberals, YOU broke it…

Khun Joe on February 19, 2013 at 6:20 PM

The good news is Legislators can’t sit around dreaming up new ways to waste money.

The bad news is they’ll be able to use that time creating new nanny state laws and regulations.

antipc on February 19, 2013 at 6:21 PM

Really, does anybody with two active brain cells believe anything these turds say? How can anyone think that California, or Illinois, or New York, or any other libtard state is going to make any economic advances with the policies that they hold so dear? You’ve got to be kidding that ANY governmental entity can be believed when nothing but good news is being spewed out.

HiJack on February 19, 2013 at 6:22 PM

You mean the libtard Dems were WRONG yet again?
Shocked I say, shocked I am……

dentarthurdent on February 19, 2013 at 6:25 PM

Nice place to visit, but,…..

a capella on February 19, 2013 at 6:18 PM

I don’t even want to visit any more.

dentarthurdent on February 19, 2013 at 6:26 PM

I said this last year and I’m not even an accountant. When higher taxes are on the horizon there will be more income recognition like people selling businesses, stocks or bonds right up to the deadline. Now that the frenzy is over and taxes are higher people won’t be rushing to cash in anything right now.

Wigglesworth on February 19, 2013 at 6:29 PM

Nice place to visit, but,…..

a capella on February 19, 2013 at 6:18 PM

And Colorado is heading in the same direction, so I’m not so sure I want to live (or visit) here any more either.

dentarthurdent on February 19, 2013 at 6:29 PM

I don’t even want to visit any more.

dentarthurdent on February 19, 2013 at 6:26 PM

I don’t either, but I have a brother and nephew there. So I’m gutting it out…for now.

22044 on February 19, 2013 at 6:30 PM

What I like was how they crowed up and down about how they were not spending what they didn’t have, SEE? SEE? SEE???? as if they subscribed to Conservative principles, as long as they seemed to have gotten it for free, only to have reality swiftly bite them in the you-know-what.

As if any sentient being would EVER have not seen it coming a mile away. Fools.

Dirty Creature on February 19, 2013 at 6:30 PM

Criminal Idiocy.
Taxation and anti-business politices driving an outflow of middle-class workers and business owners, and yet they talked themselves into imagining there was a ‘surplus’ somewhere.
My state is heading right down the shitter, at warp speed. With more public union workers, “educators” and welfare addicts combined, than there are private workers. AND with a fresh marxicrat supermajority in our State legislature and ‘Moon Beam’ for Governor. Unrecoverable. We’re going to outstrip Detroit’s collapse, in half the time.
EJECT EJECT EJECT

rayra on February 19, 2013 at 6:30 PM

I said this last year and I’m not even an accountant. When higher taxes are on the horizon there will be more income recognition like people selling businesses, stocks or bonds right up to the deadline. Now that the frenzy is over and taxes are higher people won’t be rushing to cash in anything right now.

Wigglesworth on February 19, 2013 at 6:29 PM

Yup – because of the impending fiscal cliff, I sold ALL of my stock holdings in December, some at a loss, just to avoid the potential tax hikes. Now I’ll probably just save and pay off bills – I’ve invested a lot in steel, lead and brass since November.

dentarthurdent on February 19, 2013 at 6:32 PM

The report says the extra money was “likely the result of major tax law changes at the federal and state level having a significant impact in the timing of revenue receipts.”

And has nothing, at all, to do with the normalization of CA income tax withholding rates. This is referred to as “aggressive accounting” in the CPA world.

BobMbx on February 19, 2013 at 6:38 PM

California is such a nice place, other than the people who live there.

Tater Salad on February 19, 2013 at 6:39 PM

How much do you want to bet the CBO will come out with th esame finding for the US? They recently said the deficit would be under $1T, however that assumed tax receipts based on higher rates with and no economic slowdown from higher taxes.

Tater Salad on February 19, 2013 at 6:42 PM

Lets legalize 10 million new Democrats.

El_Terrible on February 19, 2013 at 6:45 PM

I’ll believe Moonbeam when the state pays back all the money raided from “special funds” over the last decade.

Why do I have the feeling that those funds will NEVER be paid back?

Meanwhile Moonbeam is polishing his legacy “Bullet Train to Nowhere”.

GarandFan on February 19, 2013 at 6:46 PM

As much as I enjoy seeing California hurt, all its pain does is force out the morons who ruined that state into other states like Nevada and Colorado so they can ruin them too.

Daemonocracy on February 19, 2013 at 6:19 PM

I like to call those people “Economic Locust” as they did not originate in California, but moved here from other states in the Union when California’s economy was booming. They brought with them their socialist dreams of a Marxist Utopia and have crippled California economically.

I do feel sorry for the States bordering California because now that those economic locust have nearly destroyed California, they like real Locust, will more on to the next green pasture, rather than returning to the States where they were born.

SWalker on February 19, 2013 at 6:49 PM

I’m content to view California via NCISLA – that’s as close as I wish to get.

OldEnglish on February 19, 2013 at 6:52 PM

The only issue being that, on second thought, that surplus might not be as wonderful as they originally supposed; Gov. Jerry Brown’s budget office has a new report out cautioning that the $5 billion revenue bump in January might just be the result of an accounting anomaly and not any systemic budgeting victory

“anomaly”…so, in other words, somebody Fluked up.

Still, the Libtards will be posting about California’s supposed surplus to deflect arguments against the unsound policies (being nice here) of Libtardism, well into the future. Heck, we’re still hearing about the Slick Willy “surplus” that is dubious from what I’ve read and heard.

Dr. ZhivBlago on February 19, 2013 at 6:57 PM

Meanwhile in Texas

Sekhmet on February 19, 2013 at 6:03 PM

OMG! ROF! Made my day!!! I needed it.

avagreen on February 19, 2013 at 7:00 PM

I do feel sorry for the States bordering California because now that those economic locust have nearly destroyed California, they like real Locust, will more on to the next green pasture, rather than returning to the States where they were born.

SWalker
on February 19, 2013 at 6:49 PM

Being from Texas……….this is my concern. Stupidity and blindness……..

avagreen on February 19, 2013 at 7:03 PM

Those morons in CA looked at their revenue chart and saw a hockey stick graph. Where have I seen one of those before?

Wigglesworth on February 19, 2013 at 7:06 PM

Nice place to visit, but,…..

The nice places to visit are dwindling as I write. If you want to visit that of California worth seeing, better do it very soon.

hawkeye54 on February 19, 2013 at 7:06 PM

I’m sure Rick Perry will attempt another recruitment effort. He’ll have Texas blue before the next election.

Mr. Arrogant on February 19, 2013 at 7:09 PM

I do feel sorry for the States bordering California because now that those economic locust have nearly destroyed California, they like real Locust, will more on to the next green pasture, rather than returning to the States where they were born.

It isn’t only the bordering states. Regrettably the leftist locusts have heard about air travel and have been using it to migrate well beyond California’s border states. Many evidently consider themselves missionaries, taking leftist ideology with them to infect the areas to which they relocate, so that all may eventually know the misery they inflict.

hawkeye54 on February 19, 2013 at 7:10 PM

Why doesn’t Jerry get his ass over to Texas and try to woo some companies to the Golden State?
Oh right!!!!

http://www.breitbart.com/Big-Government/2012/11/29/Study-CA-worst-governed

redguy on February 19, 2013 at 7:12 PM

I do feel sorry for the States bordering California because now that those economic locust have nearly destroyed California, they like real Locust, will more on to the next green pasture, rather than returning to the States where they were born.

SWalker on February 19, 2013 at 6:49 PM

Sheer fantasy… the economy is growing much faster in California than the national average. Yes the state has bloated unions and welfare programs but no one is producing serious forecasts that place any doubt on multi-billion budget surpluses in 3-6 years out.

http://www.washingtonpost.com/business/economy/will-higher-taxes-on-the-rich-derail-californias-economic-comeback/2013/02/18/13f0b534-7711-11e2-95e4-6148e45d7adb_story.html?hpid=z2

Don’t like the tax rates on the wealthy? Then leave, move to Arizona or ‘bama, no one is going to miss you. California isn’t trying to compete with low tech, poor economies of the south. It’s competing with the pacific rim, Germany, and northern Europe.

bayam on February 19, 2013 at 7:16 PM

I want to get out of this state so bad I can’t stand it.Was looking at Missouri but sounds like the loons are taking hold there.I just wish the state would collapse already and put us out of our misery.

jeffinsjvca on February 19, 2013 at 7:17 PM

It’s competing with the pacific rim, Germany, and northern Europe.

bayam on February 19, 2013 at 7:16 PM

Yes – in trying to be an even bigger thief!

OldEnglish on February 19, 2013 at 7:24 PM

You know, everytime there is a mention of California on an Internet blog, there is a chorus of whining about how Californians have ruined other states.

One trick ponies posters.

Back it up with stats:

http://www.governing.com/gov-data/census/2010-census-state-migration-statistics.html

http://www.forbes.com/special-report/2011/migration.html

MichaelGabriel on February 19, 2013 at 7:30 PM

You know, the real upside to how the left’s policies drive governments into the ground is that the left’s politicians are generally completely incompetent.

If they were actually good at their jobs, they’d be better at hiding their failures rather than than highlighting them.

This is all according to plan; I’m glad my “let it burn” strategy of voting for Brown is paying off.

Nessuno on February 19, 2013 at 6:08 PM

As much as I respect your views and motivations I’m afraid that they’ve simply run out of accounting tricks. For them to fraudulently hide their incompetence beyond the tricks they’ve already employed would require new advances in math and physics; a break-through of Einstein-ian proportions.

hisfrogness on February 19, 2013 at 7:36 PM

They said they had a surplus and someone believed them?

rrpjr on February 19, 2013 at 6:05 PM

No. They don’t even believe it.

peski on February 19, 2013 at 7:52 PM

The problem with Kalifornia is that it is exporting talented, tax-paying producers and importing non-producing leaches. But, don’t worry; if Obama, Schumer, McCain, Graham and Rubio get their way we will all be Kalifornians before long.

bw222 on February 19, 2013 at 7:53 PM

Sheer fantasy… the economy is growing much faster in California than the national average. Yes the state has bloated unions and welfare programs but no one is producing serious forecasts that place any doubt on multi-billion budget surpluses in 3-6 years out.

http://www.washingtonpost.com/business/economy/will-higher-taxes-on-the-rich-derail-californias-economic-comeback/2013/02/18/13f0b534-7711-11e2-95e4-6148e45d7adb_story.html?hpid=z2

Don’t like the tax rates on the wealthy? Then leave, move to Arizona or ‘bama, no one is going to miss you. California isn’t trying to compete with low tech, poor economies of the south. It’s competing with the pacific rim, Germany, and northern Europe.

bayam on February 19, 2013 at 7:16 PM

And you don’t think Moonbeam and his Super-Dem’s will have any additional revenue from growth spent years before they receive it? Dream on.

There’s only ONE thing that’s keeping California from imploding under it’s own weight. THE WEATHER. If we had Chicago’s weather, or even Texas’ we’d already be New Mexico.

peski on February 19, 2013 at 7:56 PM

Keep voting democrat!

tom daschle concerned on February 19, 2013 at 8:13 PM

“I went up and down the state promising that we’d be good stewards of the people’s money and would they please add to it by the tax measure. We’re also not going to pay the game of spending money we don’t have.” …

…as usual…even though it will never happen, the fact that we mentioned it…it is now a fact! (press and prog think!)

KOOLAID2 on February 19, 2013 at 8:33 PM

You own it now demos. Also cali owns it now.

jake49 on February 19, 2013 at 8:52 PM

The rest of us have just been muttering “wait and see, wait and see” with our hands buried in our heads, wondering how these poor fools could believe it was so simple.
JEM on February 19, 2013 at 6:18 PM

Sounds painful.
I’ve had my head buried in my hands, myself.

Count to 10 on February 19, 2013 at 9:05 PM

Sheer fantasy… the economy is growing much faster in California than the national average. Yes the state has bloated unions and welfare programs but no one is producing serious forecasts that place any doubt on multi-billion budget surpluses in 3-6 years out.

http://www.washingtonpost.com/business/economy/will-higher-taxes-on-the-rich-derail-californias-economic-comeback/2013/02/18/13f0b534-7711-11e2-95e4-6148e45d7adb_story.html?hpid=z2

Don’t like the tax rates on the wealthy? Then leave, move to Arizona or ‘bama, no one is going to miss you. California isn’t trying to compete with low tech, poor economies of the south. It’s competing with the pacific rim, Germany, and northern Europe.

bayam on February 19, 2013 at 7:16 PM

Nope. Go find some real statistics. California is doing somewhat worse than average for the country, and no serious economist thinks they are really going to come close to balancing their budget any time soon.

Count to 10 on February 19, 2013 at 9:08 PM

Mark my words, come April when the State Treasurer has to report on a projected budget outlook for the end of the fiscal year on June 30th, he will be reporting a budget deficit. Guaranteed.

powerpickle on February 19, 2013 at 9:31 PM

Why just this morning I clicked on a link, from this very site I think, and read an article which basically said that everything was coming up roses for California. It was basically a big raspberry to anyone who would claim that the Democrat economic model is bad for the economy. The article claimed that the job market was bouncing back, it noted this big surplus and claimed that there are no signs of anyone leaving CA for lower tax states.

So, if the surplus is a bust, what about the rest of it?

Texene on February 19, 2013 at 9:35 PM

The real question is who will continue to lend California monies. I don’t even honestly see how they function. Do they truly make receipts? Who are their financiers? I hear budget deficits of 20bil, then surplus of 9bil, then everything in between.

John Kettlewell on February 19, 2013 at 10:25 PM

Elections have consequences. When you REelect Moonbeam, what do you expect? California you deserve what you get and I think that means bankruptcy.

Christian Conservative on February 19, 2013 at 11:08 PM

bayam, you are full of shit. The economy in CA is tanked and those projections are cooked. The billions they are about to throw away on the bullet train to nowhere alone are going to sink the state, and thats BESIDES the public union thieves and the welfare leeches. Something over 40% of the NATION’s entire welfare addict population is in CA. Then there’s the unfunded burden of illegal aliens.
No amount of powerpoint chart-waving will forestall this stall. This state is going down.

/and that’s besides only FIVE major motion pictures being made in Los Angeles county last year.

rayra on February 19, 2013 at 11:17 PM

Don’t like the tax rates on the wealthy? Then leave, move to Arizona or ‘bama, no one is going to miss you. California isn’t trying to compete with low tech, poor economies of the south. It’s competing with the pacific rim, Germany, and northern Europe.

bayam on February 19, 2013 at 7:16 PM

You arrogant idiot. California wouldn’t be a freaking thing without a government subsidy. Name an industry. Government has propped it up.

You go on about the greatness of liberal corps like Apple? Without universities on the government dole buying those high-priced over-rated computers, they’d have gone out of business in their first decade. You owe everything in liberal Cali to government. Once the well dries of the people footing the bill, you’re a third world state with an expensive taste in wine and everything liberal.

hawkdriver on February 20, 2013 at 12:16 AM

hasn’t propped …

hawkdriver on February 20, 2013 at 12:16 AM

I’m shocked I tell you, SHOCKED!!!!

jukin3 on February 20, 2013 at 1:01 AM

Does anyone actually think moombeam has the slightest clue? Soon the dunces in Sacto will screw up the weather.

StevC on February 20, 2013 at 10:51 AM

You go on about the greatness of liberal corps like Apple? Without universities on the government dole buying those high-priced over-rated computers, they’d have gone out of business in their first decade.

hawkdriver on February 20, 2013 at 12:16 AM

And Apple avoids Cali taxes by funneling most of it’s US revenue into their Reno, NV subsidiary. They’re all for the Cali tax hikes since they don’t pay them!

Random Numbers (Brian Epps) on February 20, 2013 at 7:23 PM