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California Governor Claims $24 Billion Deficit is Really a Surplus

Posted By Daniel Greenfield On January 10, 2013 @ 10:44 pm In The Point | 10 Comments

Governor Jerry Brown must have found one of those Platinum coins every progressive economist is talking about because he has performed another economic miracle. The kind of economic miracle that Madoff and many convicted fraudsters commit on a regular basis. Even CNBC seems impressed by Brown’s ability to levitate economics with sustained meditation.

According to the California Controllers’ Office, the state is running a 24.2 billion dollar budget deficit. Not to mention a 1.9 billion dollar gap. But according to Governor Moonbeam it’s really an 851 million dollar surplus. It’s a slight discrepancy when you consider that

The finance department estimates there is still a $28 billion “Wall of Debt” built up over years of internal borrowing, as well as more than $100 billion in unfunded liabilities in state-backed retirement health and pension systems.

Governor Moonbeam is taking credit making huge cuts to spending. How huge? Well this one is only 11 billion dollars more than the last one. By Atlantean math, that’s actually less.

Brown warned the state not to get exuberant over its improved finances. “It’s very hard to say no. That’s going to be my job,” he said.

So no one’s going to say “no”. Certainly not California’s multicultural coalition of money grows on trees.

Assembly Speaker John A. PĂ©rez applauded Brown’s budget proposal, citing its slashing of the state’s structural deficit, reduction of state debt, increase in school funding and commitment to implementing federal health-care reform.

“This is a good starting point,” he said. “But it is that, it’s a starting point.”

The state’s judicial leaders were among the most frustrated by Brown’s proposal. While he kept funding flat for judicial operations, he proposed taking $200 million in court construction funds to help make ends meet and didn’t add back funding as some had hoped.

Chief Justice Tani Cantil-Sakauye said a flat operational budget isn’t enough because courts have suffered cuts too deep in recent years. She noted that courts in Los Angeles, Fresno and San Bernardino Counties are slated to close without additional funds.

“This budget doesn’t answer our challenges and our problems,” she said in a conference call with reporters.

Let’s try a 200 billion dollar budget next time. We can pay for it with a platinum coin.


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