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May 26, 2009
Why is Califorrnia is such a budget mess?
I have reason to question that general fund budget chart I posted last week (How high tax is California) because of a great piece from reason:
In FY 1990-91, the state took in over $38 billion in General Fund revenues. In FY 2008-09 revenues are $102 billion. Based on these revenues, if California had simply limited its spending increases to the 4.38 percent average increase in the state’s consumer price index and population growth each year since FY 1990-91, instead of a $42 billion deficit, the state would be sitting on a $15 billion surplus this year.
California Spending by the Numbers: A Historic Look at State Spending from Gov. Pete Wilson to Gov. Arnold Schwarzenegger
Fortunately, now we know what to cut. We just whip out the 1990-1991 budget and cut everything down to the staffing and funding levels of that year but adjusted to today's population and prices. That would cut $57 billion, and we can play around with the $15 billion surplus to meet new needs and address federal unfunded mandates.
Posted by OneEyedMan at May 26, 2009 2:18 PM
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