Fraudulent California State Budget

  • Mercury News: Senate OKs plan, rejects tax hikes. Lawmakers relied on $10.7 billion in borrowing while slashing spending by $7.3 billion — or 9.4 percent — with cuts to cities, counties, higher education and health care for the poor.

  • The Big Lie in this budget is that there’s no tax increase. The legislators would borrow more billions instead, and now they get to pretend that there’s no consequence.

    What a crock. How will we pay back those loans (plus the exhorbitant interest California now must pay due to the state’s fiscal mess)? Why, with our tax dollars.

    So, in a few years, barring an economic miracle that only a fool would rely on, the situation will be this: California will either just about eliminate — not just cut back — popular and/or vital services, or it will have higher taxes.

    The phoniness of this budget “compromise” is nauseating. But maybe we Californians get the government we deserve. We’re definitely getting the one we voted for.


    Posted by: on July 28, 2003 06:46 PM

    It gets worse: we get to borrow that money with a
    worst-in-the-nation BBB bond rating, meaning that we will pay much more in interest than other states pay.

    Posted by: Warren TenBrook on July 28, 2003 11:32 PM

    Yeah, we are paying a finance charge. Yeah, we are paying more for the money than other States. The solution sucks, but the economy sucks more.

    It may be better to take the loan and amortize State revenue across multiple years until our economy and tax base improves, rather than immediately slicing a pound of flesh out of our taxpayers in 2004 while we’re down and out.

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