Hope is not a good biz plan – California Dreaming, Guessing

Editor’s Note – As SUA has been reporting in our series on governmental reports on economic numbers, fact or fiction, California Governor ”Moonbeam Again” Brown, contrived a budget that was chock full of holes. These holes relied on estimates that were pure fiction; estimates that seemed pie-in-the-sky at best.

All of his plans were based upon the mis-conceived notion that the economy would rebound fast. The problem is, all the indicators back then said otherwise, but damn the numbers, they “felt” the recovery would come. “Hope and Change” were on the way.

Darn - We were off by this much!

Wishful thinking, emotionally driven decision making, and hope were never good business plans.

Brown and the California-left knew this, but they chose to appease. The unions “Moonbeam” helped create in the public service sector in his first foray as Governor are now sucking California dry. They knew it would, but they hoped, they prayed, they lied to us.

Now we see that original estimates for revenue were way off, the estimates for revenue increases was low by 42%, close guess “Moonbeam”. Like his kin in control in Washington now, the numbers game was just that, a game. If it looks like excrement, smells like excrement, is the color of excrement, it was probably political excrement. In other words…it was BS! As California goes, so goes the nation…thanks liberals and unions!

California Dreaming – great song, poor business plan, change the name to California Guessing.

California deficit has soared to $16 billion, Gov. Jerry Brown says

LA Times

Gov. Jerry Brown announced on Saturday that the state’s deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.

The bigger deficit is a significant setback for California, which has struggled to turn the page on a devastating budget crisis. Brown, who announced the deficit on YouTube, is expected to outline his full budget proposal on Monday in Sacramento.

“This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year,” Brown said in the video.

Lawmakers and others were hoping that a rebounding economy would help the state avoid steep cuts to social services. But revenue in April, the most important month of the year for income taxes, fell far short of expectations, leading to a shortfall of at least $3 billion in the current fiscal year.

The state has also spent $2.1 billion more than expected, according to the controller, further worsening California’s financial health.

Advocates involved in budget discussions say they expect deeper cuts to social services than Brown originally proposed in January. Union officials are also in negotiations with administration officials about ways to reduce state payroll costs, an issue that wasn’t on the table earlier this year.

Brown has said there will be even deeper cuts, mostly to public education, if voters do not improve tax hikes in November. He is seeking a quarter-cent increase in the state sales tax for four years and a seven-year hike on incomes of $250,000 or more that will range from 1 to 3 percentage points. He says the measure would raise $9 billion in the upcoming budget year.

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