California's budget comes from unchecked spending, and a shortfall in tax collections. The state legislature (controlled by Democrats) consistently refuses to cut spending. Other cuts are prevented by law suits and legal injunctions.
SACRAMENTO, Calif. – California's budget deficit has swelled to a projected $16 billion -- much larger than had been predicted just months ago -- and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, Gov. Jerry Brown said Saturday.
The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.
"This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year," Brown said in an online video. "But we can't fill this hole with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety."
Further, the state legislature and the governor consistently assumes economic growth in an atmosphere of over-regulation and heavy taxation. For example, Governor Brown projects his tax initiative would raise as much as $9 billion in fiscal year 2012-13, but other estimates say $6.8 billion.
Hence California's reckless plunge into financial crisis through fiscal irresponsibility. Which is an excellent model for the direction that we do not want to go in.
