Good Morning Gentle Readers,
Got back from my hike around the mountain this A.M. (uphill, both ways) to bad news on the doorstep. Nice sunrise though.
The bold headline in the local rag was clearly visible through the plastic wrapper, no need to even bend down and pick the thing up. So I kicked it across the driveway.
As shocking as that may seem (don't yawn now, pay attention here), the real story isn't the shortfall. It's the 143 billion dollars that the governor has earmarked for the furnaces in Sacramento. A few of the bond guys on Wall Street have noticed that Arnie is half naked.
In addition to the uncertain tax revenue, Schwarzenegger's $143.2 billion budget relies on other risky revenue assumptions, analysts say.
The governor justifies his claim that the budget is balanced by concocting a new accounting concept he calls the net operating deficit. Here's how it works: To enable his claim that he is paying down debt when it is actually increasing, the governor made some pre-payments during the past two years -- akin to paying more than the minimum balance on your credit cards. But to hide the deficit he created on the other side of the ledger, he simply doesn't enter those payments in the state's checkbook.
Overall, the governor has exceeded the net deficit numbers that cost Gumbi Davis his job by a billion dollars. Worse, Schwarzzengroper's ride to the rescue on his White Horse is costing Californicate taxpayers about FORTY BILLION DOLLARS more than Gumbi's worst performance ever. How long ago was that? Just a few short years and Arnie has upped the ante by 40%.
But more taxes will solve everything.
And the fargin' roads still suck.