Budget Deficits Here To Stay!

Anthony Pignataro:

If you like, you can take the time and read the entire 42-page report the Legislative Analyst’s Office just put out on our state’s glorious fiscal outlook, or you can just peruse the following paragraph:

“Similar to our forecast of one year ago, we project annual budget problems of about $20 billion each year through 2015‑16. In 2012‑13, when the state must repay its 2010 borrowing of local property tax revenues and the full effect of Propositions 22 and 26 hit the state’s bottom line, our forecast shows the operating deficit growing to $22.4 billion. Because our methodology generally assumes no cost‑of‑living adjustments, our projections probably understate the magnitude of the state’s fiscal problems during the forecast period.”

Given the new Proposition 25 (majority budget votes only) and Proposition 26 (no new fees without two-thirds vote majorities), we’re looking at some serious budget fireworks this year. Should be a blast — from a journalistic perspective, of course. The taxpayers are doomed, but does that surprise anyone?

NOV. 10, 2010