Ah, California! The Golden State! Why, it was just a few months ago that the governor and legislature got together and passed a balanced budget. Problem solved?
Not exactly. Initially, the budget deficit number that came in just a few months after the budget agreement was about $7B. Then, Arnold said maybe it was about $12B. Today, we’re hearing the deficit is over $20B and likely to continue indefinitely.
California’s budget deficit will balloon to $20.7 billion over the next 18 months, a report from the state’s budget analyst predicted Wednesday, all but promising another year of partisan gridlock as lawmakers labor to fill the gap with more spending cuts and efforts to raise taxes.
And the office says deficits of close to $20 billion or more will haunt the state for years — fed in part by skyrocketing retirement costs for state workers and debt service accumulated after years of borrowing to make ends meet.
Remember this as you’re reading about how much a national health care system is projected (by government folks) to cost, or how much the health care system is projected (by government folks) to save.
Do we really believe any government projections? The Republicans are blaming the Democrats, while the Democrats are blaming the Republicans. Meanwhile, the state of California is rolling in red ink.