Gov. Newsom’s Pea Shell Game Budget Tricks

0
32

California’s budget is balanced only on the assumption that Nancy Pelosi’s $3 trillions bail-out is approved by Congress, including funding to bail out pensions and state operating costs.

Just as in a pea shell game, there is no way to know whether the real balance of the California budget is and if the new budget is a tax increase or tax cut.

But all the temporary budget cuts, tax increases, delayed spending, borrowing and reliance of federal funds doesn’t tell us whether there has been a net change to the 20-21 annual budget, up or down, or whether there was any $54 billion budget deficit at all. 

According to media reports, California will close the purported $54 billion general fund budget deficit gap blamed on the coronavirus epidemic with a mixture of:

  • Temporary budget cuts $2.8 billion,
  • School funding deferrals $12 billion,
  • Loans from special funds
  • Bond borrowing
  • Other federal funds…

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here