Tuesday, January 10, 2006

McClintock Statement on the Budget

“Today the Governor released his budget proposal for the 2006-2007 fiscal year.

“It projects general fund spending of $97.9 billion with income of $91.5 billion, for a general fund operating deficit of $6.4 billion. This brings the accumulated three year operating deficit to $9.8 billion.

“This deficit is funded entirely with borrowed funds from Proposition 57, approved by voters in 2004. Although the public was promised that this bond would only be used to pay for past deficits, it is in fact being used to cover deficits for 2004 ($0.6 billion), 2005 ($2.9 billion) and now 2006 ($6.4 billion).

“In November, the Legislative Analyst projected that if nothing were done to rein in spending, the 2006 budget would consume $95.1 billion. The governor proposes spending $2.8 billion above this figure.

“In the last three years, combined population and inflation will have grown 16 percent; revenues 19 percent; spending 25 percent. For the budget year, combined population and inflation will increase 4 percent; revenues 5 percent; spending 9 percent. Revenues continue to outpace inflation and population; spending continues to outpace revenues.

“I have always applied two fundamental tests to a budget: it must be balanced within existing revenues and it must contain a prudent reserve. The proposal as submitted to the legislature fails both tests.”


At 1/18/2006 8:04 PM, Blogger Goldwaterguy said...

I just couldn't stand the fact that no one has responded to McClintock's posting ...


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