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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (12782)	8/20/2003 10:33:14 PM
From: deeno	Read Replies (1) \| Respond to of 306849

your link "California’s exceptional economic performance over the past year, coupled with continued strong stock market growth, led to robust revenue growth in fiscal year 1999-00 that is expected to largely continue in 2000-01. Since enactment of the final 1999-00 Governor’s Budget, the General Fund revenue forecast over the past and current-year period has increased by $2.9 billion. In addition, total General Fund revenues in 2000-01 are expected to be up $3.1 billion or 4.7 percent from 1999-00, to reach $68.2 billion. This revenue strength comes on top of unusually strong gains in the current and past year. General Fund collections are expected to increase 11.2 percent on a year-over-year basis in 1999-00, which will bring revenues to $65.2 billion in the current fiscal year. For 1998-99, total revenues were up 6.7 percent or $3.7 billion, to reach $58.6 billion. This growth pattern is particularly impressive given the significant General Fund tax relief enacted over the last three years. The current year’s growth in part reflects the fact that 1999-00 is the first year in which California will receive revenue from tobacco company litigation. Over $500 million is expected from this source in 1999-00 and nearly $400 million in 2000-01. California’s remarkable employment and income growth during 1999 were reflected strongly in revenues. At the time the budget was prepared, personal income tax withholding paid in 1999 was over 14 percent above the year earlier. The first three estimated payments for the personal income tax were up over 15 percent. Taxable sales grew at a faster pace in inflation-adjusted terms than any time since the early 1980s. Much of the State’s revenue surge in recent years results from the extraordinary gains in the stock market. Taxpayers have realized record-level capital gains that have grown at year-over-year rates of between 22 and 58 percent for the last four years. In addition, stock options have become an increasingly common component in wage packages—particularly in California’s high tech sector. Taxpayers deriving income from retirement saving vehicles, such as Individual Retirement Accounts and 401(k)s, have also benefited from this growth. Together, these factors account for much of the rapid growth in the personal income tax. The stock market has also contributed to a sense of wealth among consumers, resulting in dramatic increases in sales tax revenue." Gee everythings going well. gee we have lots of money. but wow we have some real critical needs. Needs by the way we WOULDNT have had if we didnt project a great year. CUT ' EM THEY WILL ALWAYS SPEND WHAT WE GIVE 'em dof.ca.gov THATS YOUR LINk GEE revenue goes up 3 BILLION DOLLARS guess what the expenditures go up? Maybe when the revenues go down the expenditures should go down. They will spend what we give em. If we give 'em less they will spend less. Picking on any one group plays into the hands of politioans. Cut it across the board. "The Legislature reduced the 2002-03 Proposition 98 funding level for K-12 education three times during 2003. Chapter 4x (SB 18x, Chesbro), Chapter 10x (SB 28x, Committee on Budget and Fiscal Review), and Chapter 26 (SB 1040, Committee on Budget and Fiscal Review) reduced funding for K-12 by a total of $2.5 billion through a combination of deferrals, use of one-time prior-year Proposition 98 funds, capturing anticipated program savings, and limited program reductions" I guess they will need to reduce it more. Like everyone should have to. "With prop 98 (requires half of state money goes to schools)- " 1/2 of a smaller number is a smaller number. "we'd have to cut whatever discretionary stuff is available by 50%. There is not much of this. I don't think there there is 50% available to cut." Of course there is 1. we dont haave the money 2. cuts should be across the board If your number is 50% so be it, you still have my vote. BTW I dont beleive it HAS to be done in one year. It might take 2. So what I can wait a year. Real cuts will leverage themselves to emergency reserves when tiems are good again. (and yes they will learn how to spend it again) "Bottom line: the tech workforce and the stock market paid the bills for the freeloaders in this state. Now, those are gone. And you're screwed" So you agree lets stop paying for all the freeloaders that DOES NOT mean raise taxes it means spend less.