Commentary
“The planned reduction involves all categories, including personnel, operating costs, and contracting. The Department of Finance will collaborate with agencies and departments in the fall to implement the necessary budget adjustments,” the budget summary states.
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Additionally, the budget proposal includes “gimmicks” such as fund delays, pauses, and revenue/internal borrowing. The plan also involves tapping into rainy day funds, which are typically reserved for times of economic depression.
The deficit is attributed to a significant drop in revenues after a period of high income. Revenues surged from $139 billion in 2019–20 to $215 billion in 2021–22, fueled in part by federal COVID-19 relief funds. However, revenues fell back to $170 billion in 2022–23.
The budget predicament underscores the importance of fiscal responsibility and long-term planning. The proposed budget adjustments aim to address the current financial challenges facing the state.
After the Legislative Analyst’s Office presents its analysis, the Legislature will be tasked with finding solutions to rectify the deficit caused by past financial decisions.
In conclusion, the budget shortfall highlights the consequences of unsustainable spending practices and the need for prudent financial management moving forward.
Newsom and the Legislature
Ultimately, it is the voters who must be blamed for preferring wild spending over prudent budgets that were suggested by Mr. Moorlach. As the saying goes, you reap what you sow.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
