Opinion: Calif. cities not faring as well as state
By Dan Walters, Sacramento Bee
The state budget is largely financed by personal income taxes, and thanks to an improving economy and a temporary tax increase approved by voters two years ago, it is enjoying surpluses after years of deficits.
Indeed, the big conflict in the Capitol this year is over competing priorities for billions of extra bucks.
Dan Walters
Gov. Jerry Brown wants to devote most of the extra money on debt repayment and reserves, but his fellow Democrats in the Legislature want more spending, ranging from universal pre-kindergarten to health and welfare services.
Cities, however, are not sharing in the income tax cornucopia because their budgets are based on sales and property taxes, and neither is generating the big gains that an up-cycle brings to the income tax system.
Residential and commercial construction, a source of property tax gains, remains somewhat sluggish. Ditto for retail sales as consumers, still reeling from the effects of recession, remain skittish.
As officials in cities large and small begin work on their 2014-15 budgets, therefore, they are seeing very tight times ahead, not only because of modest revenue growth, but because they face rapidly escalating costs for retiree pensions and health care.
Gov. Jerry Brown wants to devote most of the extra money on debt repayment and reserves, but his fellow Democrats in the Legislature want more spending, ranging from universal pre-kindergarten to health and welfare services.
Not a fan of Moonbutt, however he looks to be headed in the right direction with this thought. But right on que, his cast of Demorats want to get back into debt. Fools! I think I learned somewhere in grade school to not buy anything unless I had the money to pay for it. WOW, what a concept.
Which is why it’s foolish to ever voluntarily increase your taxes. It doesn’t matter how much you give government. It will NEVER be enough. They will ALWAYS spend every dime, and more. They have no reason not to.
Gaspen and Dog. “Moonbutt?” Really? What entity and Governor was directly responsible for California’s Debt problem? ENRON! $27 billion stolen is a lot of money to replace. Arnold settled with Texas for $500 million then floated a bond aka debt.
Quite frankly, neither one of you is great at predicting anything except doom and gloom that never happens. I will trust Governor Brown any day of the week and twice on Sunday over you two.