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…