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California scores staggering $75B budget surplus
mystery-ak:
California scores staggering $75B budget surplus
By Reid Wilson - 05/10/21 02:35 PM EDT
California’s budget is in the black — by a staggering amount.
A state that expected perhaps the most severe budget crunch in American history instead has a more than $75 billion budget surplus, Gov. Gavin Newsom (D) said Monday, after a booming stock market and better-than-anticipated tax revenues over the pandemic-plagued year.
As recently as a year ago, California’s top elected officials were staring into a budgetary abyss that made the Great Recession look like a pothole. Newsom’s office projected a budget deficit of up to $54 billion, or about a quarter of the entire state budget. Legislators prepared to cut state government to the bone.
“We were scared, all of us,” state Assemblyman Chad Mayes (I) told The Hill last month. “We all agreed, 'Hey, we’re going to take a hit because we’re heavily dependent on high-income earners.'”
But the stock market’s rebound, and its yearlong rally, have helped repair the gap. California is unusually reliant on receipts from capital gains tax, so a strong year in the market is good news for state government. Initial public offerings from companies like DoorDash and Airbnb helped, while sales tax revenues also came in in greater amounts than expected.
Newsom said in an address Monday that he would propose using much of the money to fund what he said would be the biggest economic recovery package in state history.
Newsom’s $100 billion proposal would add $12 billion more in direct payments to California residents, including $600 to most people and an extra $500 to families with dependents. The payments would go to families making less than $75,000 a year.
more
https://thehill.com/homenews/state-watch/552685-california-scores-staggering-75-billion-budget-surplus
mystery-ak:
Oh please, no mention of the federal bailout... :smokin:
mystery-ak:
Newsom Running Scared From Recall, Resorts To Bribing the Taxpayers He Stiffed On the Last Stimulus
https://redstate.com/kiradavis/2021/05/10/newsom-running-scared-from-recall-resorts-to-bribing-the-taxpayers-he-stiffed-on-the-last-stimulus-n377615
sneakypete:
--- Quote from: mystery-ak on May 10, 2021, 08:31:46 pm ---Oh please, no mention of the federal bailout... :smokin:
--- End quote ---
@mystery-ak
I missed that. Could you post about it on this thread?
mystery-ak:
Why California will Receive the Most ‘COVID’ Bailout Money of all 50 States
https://californiaglobe.com/section-2/why-california-will-receive-the-most-covid-bailout-money-of-all-50-states/
Stimulus Plan a Bailout Bonanza for California
https://www.pacificresearch.org/stimulus-plan-a-bailout-bonanza-for-california/
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