Posted by Jon Fleischman at 12:00 am on Nov 13, 2006 Comments Off on Financial Challenges Await Governor, Legislature
The financial challenges facing state government in California
are very real. We already have a structural deficit of
billions. Add to that the new commitment to repay, with
interest, all of the new bonds being issued (to add to the payments
on those already issued) and the looming issue of dealing with
unfunded pension liabilities to the tune of billions of dollars
more, and you have a big challenge on your hands. But wait,
there’s more! Let’s also remember that the size and scope of
California state government keeps expanding, and that we have been
kind of (if you don’t count deficit spending) keeping pace with
obligations (ok, you have to count deficit spending, so we really
haven’t kept up). But this has been with the economy humming
along in great shape. In other words, we are one economic
downturn away from a disastrous financial situation in
Sacramento.
Of course, the stage is set for a showdown because while the
Governor has made it clear that he has set a table for himself,
Fabian Nunez and Don Perata, to see how to expand more government
programs (a.k.a… "bi-partisan, party of one"), he is also… Read More