California – Now $21 Billion Dollars in the Hole

By AWC on November 20, 2009 • ( 0 )

Keeping in theme with yesterday’s post, this is just a short and quick update on what is being reported today about our California budget.

The legislators in California who have consistently based future budget revenue projections on “best case” scenarios have once again fallen short of those projections to the tune of $21 Billion dollars. That’s a 21 with nine zeroes, like this…$21,000,000,000.

In the Spring of 2009, California legislators assumed the economy would turn around, growth would return within a few months and all would be well. Even then, a ridiculous assumption. Less than one week after they passed a budget based on that precept, they were over budget again. A couple months later, they made the same assumptions and immediately went over budget again.

This is what led to the tax increases they rammed through on us in the spring, the second round of tax increases they tried to ram through in the summer but failed (thanks to voters shooting it down), and why they are now taking an additional 10% of our income by force (see yesterday’s post).

And here we are now, the year not even done yet and they are now $21 billion over budget…again.

Can you even begin to imagine what our lawyers…err…I mean leaders in our California government are going to try to do to us now…with $21 billion coming due?

This would be a good time to watch an entertaining video on what $1 billion dollars looks like in terms we can relate to….