California has a budget surplus?

[RandFan]

Democrats at odds over California’s multi-billion dollar budget surplus

California is expected to see a budget surplus of about $4.5 billion thanks to a voter-approved tax increase, rising employment, increasing home prices, a surging stock market, and tens of billions in spending cuts.

Brown has indicated he plans to continue to cautiously restrain spending and pay down the state’s debt, though he also hopes to increase education funding for the underprivileged and expand the state’s Medicaid program.

 

[Newtons Bit]

Damn that austerity.

 

[RandFan]

Damn that austerity.

Damn those tax increases and growing economy.

 

[WildCat]

If they haven't fixed their pension mess they don't really have a surplus.

And since when doesn't tax increases count as austerity?

 

[RandFan]

And since when doesn't tax increases count as austerity?

What?

 

[Puppycow]

The full list of factors according to the article is:

thanks to a voter-approved tax increase, rising employment, increasing home prices, a surging stock market, and tens of billions in spending cuts

So yes, this would be a case of austerity. Both tax increases and spending cuts are austerity policies. Rising employment, increasing home prices, and a surging stock market are not austerity policies but independent factors.

 

[Puppycow]

If they haven't fixed their pension mess they don't really have a surplus.

http://articles.latimes.com/2013/jan/15/business/la-fi-calpers-return-20130115

 

[Brainster]

Perhaps RandFan has forgotten the last time he posted about California's phantom surplus? But hey, who am I to rain on the Democrats in Cali's parade. I suggest they spend the money on the rapid rail project. Bound to work out for them.

 

[DC]

funny, just a few days ago someone used California as an example why direct democracy doesn't work lol...... hillarious.

 

[Travis]

Perhaps RandFan has forgotten the last time he posted about California's phantom surplus? But hey, who am I to rain on the Democrats in Cali's parade. I suggest they spend the money on the rapid rail project. Bound to work out for them.

I'd be behind that.

Better to spend that money on rail than on the old paradigm of endless freeways to suburbia.

 

[Travis]

funny, just a few days ago someone used California as an example why direct democracy doesn't work lol...... hillarious.

Actually I'd say the state is succeeding (seriously half of all job growth in the US last year was in California according to figures I saw on the news one night) in spite of direct democracy.

 

[DC]

maybe its thanks to DD?

 

[WildCat]

http://articles.latimes.com/2013/jan/15/business/la-fi-calpers-return-20130115

" And its returns in the first six months of its current fiscal year were 7.1%, slightly below the 7.5% it had assumed it would gain for the full fiscal year."

Which means they're still falling further behind, they'd have to get 7.9% the rest of the year to catch up.

 

[Newtons Bit]

Damn those tax increases and growing economy.

Don't forget the spending cuts!

 

[RandFan]

Don't forget the spending cuts!

Don't forget the tax increases.

Is this some childish game. I posted the OP. I know what it says. And BTW, I have consistently conceded we need spending cuts AND tax rate increases. I have consistently reported on the GOP plan of 2010 that calls for both so I don't know why you are making a deal about spending cuts. I'm not opposed to them. I've said over and over we need both.

 

[RandFan]

And since when doesn't tax increases count as austerity?

Is this thing on or am I on ignore. Since when does tax rate increase count as austerity?

 

[DC]

Is this thing on or am I on ignore. Since when does tax rate increase count as austerity?

In economics, austerity describes policies used by governments to reduce budget deficits during adverse economic conditions. These policies can include spending cuts, tax increases, or a mixture of the two.

http://en.wikipedia.org/wiki/Austerity

 

[RandFan]

http://en.wikipedia.org/wiki/Austerity

Fair enough. I stand corrected. I've been focusing too much on the Grover Norquist and his GOP sycophants who demand no tax rate increases. I'll concede the point but somehow I don't think austerity means tax rate increases to the GOP. I've not seen many other than eeyore who have been willing to consider them. But there have been a few. Not the Norquist fan boys though.

Let me make sure no one is thinking I've moved the goal posts. I accept your wiki as source and I accept the premise. I was wrong and I apologize.

Thanks DC.

 

[JoeTheJuggler]

Sounds like a good argument for a "balanced approached" to dealing with budget deficits.

If we take any lesson from this large state budget to the federal issue*, I'd say it argues in favor of the approach the Democratic Party offered in the last election campaign (both spending cuts and tax increases--modest in the short term in light of the fragile recovery) rather than the approach offered by Republicans (no tax cuts whatsoever, spending cuts, and treating the long term debt problem as if it were a short term crisis, especially by using the debt ceiling as a bargaining chip).

*And I'm not sure we should draw too many generalities out, because they are different animals.

 

[DavidJames]

http://en.wikipedia.org/wiki/Austerity

Classical definitions of words mean nothing. What matters is how the politicians think and what actions they take.

Fair enough. I stand corrected. I've been focusing too much on the Grover Norquist and his GOP sycophants who demand no tax rate increases.

Bingo.