A budget that demonstrates fiscal restraint is essential for California to stay on track. Yet the Governor’s high speed rail funding plan shows his funding priorities are off track.
Our increased revenues are primarily the result of temporary tax increases that will soon expire. A successful, comprehensive plan will prepare for the ending of the increases Californians imposed on themselves to get out of the fiscal hole of overspending and recession.
California cannot solve its long-term budget problems by relying on temporary solutions that undermine job creation and economic growth.
It is also vital to set aside reserves for future shortfalls, or the Legislature may push to make temporary tax increases permanent. A strong rainy day fund is an important part of ensuring our state’s fiscal stability.
Ultimately, California’s budget challenges will only be truly solved when a strong and healthy private sector is able to create jobs and opportunity for more Californians.