California Governor Jerry Brown
Tries To Copycat Texas Governor
Rick Perry's Economic Miracle In
Waving Around A Piece of Paper
At A Press Conference
At least Perry waited until after a year and a half of belt tightening following billions in across-the-board cuts to state spending & getting to a surplus BEFORE bragging about it.
Note the negative spin the NYT's puts on Texas' budget surplus. The article is one long downer - oh no, politicians in TX are arguing over what to do with all this surplus money!
California? Look at the marked CONTRAST to how the NYT's handles a state with a $27 billion deficit last month that merely ANNOUNCES it's intention to balance it's budget:
"I just waved my hands like this and that $27 billion deficit just went 'POOF!'"
“The deficit is gone,” Mr. Brown proclaimed, standing in front of an array of that-was-then and this-is-now charts that illustrated what he said were dramatic changes in California’s fortunes.
“For the next four years we are talking about a balanced budget,” he said. “We are talking about living within our means. This is new. This is a breakthrough.”
Mr. Brown was not just talking about a balanced budget. He projected that the state would begin posting surpluses starting next year, leading to a projected surplus of $21.5 million by 2014, a dramatic turnaround from the deficit of $26 billion — billion, not million — he faced when he was elected in 2010.That's right. Brown called a press conference and announced CA's $27 billion deficit from just last month has now been 'erased'. Note the deceptive headline of the NYT's, as if this balanced budget has already been achieved.
It needs to be remembered these guys were over $7 billion off in their budget deficit projections last year. Not only that, they grew their budget deficit from $9 billion at the start of 2012 to over $27 billion in just one year. They kept jacking up their tax rates then watching the revenues drop as taxpayers and businesses fled the state in droves.
Back From the Fiscal Abyss, California Balances Its Budget
So one state cut it's budget and went through a brief period of making do with less, and is now reaping the fiscal rewards of that, while the other kept spending like drunken sailors and jacking up their taxes and borrowing to make up the shortfall. The NYT's sees only silver linings and blue skies for CA, while pointing out TX has a real problem on it's hands.
What I suspect is that Brown is engaging in this Kabuki Theater here to convince the lending institutions that have been threatening to cut off the state's credit & borrowing ability to continue shoving more money into CA's state treasury so they can spend it.
It's an attempt to fool credit raters and banks into thinking the politicians in Sacramento have AT LAST gotten serious about dealing with their over-the-top spending problem. I don't think any of them will be fooled, and they will instead take the wiser 'wait and see' approach to discern if Brown & Co. actually follow through on this proposed budget for 2013-14.
I'd love to see CA balance it's budget in a year and follow the example of Texas. Nobody wants to see the state fail and end up being bailed out. The question is if there will be any real, committed follow-through on what Brown announced last week.
Perry & Texas has demonstrated it IS possible to go from $27 billion in the hole to having a surplus in less than 2 years. But Texas' attitude towards businesses and taxpayers is MARKEDLY DIFFERENT from CA's. So I remain skeptical.
UPDATE: Thanks to @rdbrewer4 for the link in the sidebar at Ace of Spades HQ! Welcome to my fellow members of the Moron Horde!
All non-Moron Horde blog readers are encouraged to head over and check out Ace's blog - it's awesome & I read it every day:
Ace Of Spades Blog