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California expects a record $97.5B budget surplus (nytimes.com)
23 points by s1artibartfast on May 14, 2022 | hide | past | favorite | 27 comments


It should almost all go to education. That's where it came from, the surplus is basically the result of closing schools and shutting down services for nearly two years, coupled with the federal bailouts of course which account for about 40 billion. They should really save the money to deal with the fallout of many students being two years behind in their most formative years.

Let's not pretend California has suddenly become fiscally responsible.


This isn't true. it is the result of record tax collection, not savings or cost cutting.

California took in record taxes each year during the pandemic

https://fred.stlouisfed.org/series/QTAXTOTALQTAXCAT3CANO


What would spending 97.5B more on education accomplish?


At current market rates it would enable class sizes of ~4 with more highly paid individuals functioning as teachers.


That would require a teaching workforce somewhere between four and eight times the size of the present one, wouldn't it?


Sure, maybe more.


The money would be better spent on giving each student sessions with a personal trainer.


maybe it can buy a river or water from other states.


interestingly, a housing subsidy for lower income families has been proposed.

the WSJ bills it as 10 billion. The LA times bills it as 1 billion for "the next decade". It's all in the phrasing right?

regardless of the phrasing, to me it sounds like free money for homeowners and an anchor on the lower income if property prices dont keep increasing.

https://www.latimes.com/california/story/2022-05-11/new-cali...

https://www.wsj.com/articles/california-legislative-leader-w...


Can't help but think this will create more buyers without more supply which will only drive up prices higher.


It will, without a doubt.

The issue is not demand, it’s supply. But if we increase supply we will be killing the piggy banks of most people. It’s horrible, and will likely end in complete catastrophe in the next 20 years.

Until then, BTFD.


Its eventually gonna buy a desal plant somewhere people wont complain and ship water all over.


There are already a few in California. Environmentalists don't like them, so there will be no real expansion of them and certainly not to the level of being a net exporter.


Desalination only really makes sense with a surplus of energy. Driving desalination with the cooling system of a nuclear power plant would make sense, as it's otherwise wasted energy. But that's not popular in California, so that leaves other options like osmosis membranes that require energy.


It could buy the water rights from a good portion of the states almond farmers.


Better yet, the cattle ranchers.


Solve homelessness in the state?

Nah..


> “No other state in American history has ever experienced a surplus as large as this,” Mr. Newsom said, outlining revisions to spending he first proposed in January for the 12 months starting in July.

As if that has something to do with how incompetently the state is run, rather than the inflation caused by the Fed and enormous federal overspending.

> Once again, as California heads into a gubernatorial election, the massive surplus allows Mr. Newsom to sprinkle cash across the state.

Once again, rare gains will be spent on vote buying, and next year when record budget deficit hits California, they'll whine how they have no choice but borrow more and increase debt and taxes.


It's called over taxation


No they just spent less while schools were closed during Covid


This isn't true. it is the result of record tax collection, not savings or cost cutting. California token record taxes each year during the pandemic

https://fred.stlouisfed.org/series/QTAXTOTALQTAXCAT3CANO


Since the state has like 350 billion in deficit, they should consider that first.


Do you mean debt? Or are you referring to some sort of projected, aggregate deficit?


Well, the two large California pension systems are both each underfunded for over 100 billion each.


We got projects to pay for. How many big budget organizations out there dont hold debt? Lets look at the Feds debt while we at it, or apples. Luckily, this 100B surplus is just from this year and that debt gets paid over time ... mostly to people in california.


Apple’s debt was entirely to avoid taxes: they had cash overseas and wanted to pay a dividend, but repatriating that cash in order to pay it out would have been expensive, so they simply borrowed against it.


A surplus inherently means there is not a deficit




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