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The fiscally conservative choice for 2024
RaceBannon
Member, Swaye's Wigwam Posts: 101,259
in Tug Tavern
https://hoover.org/research/california-defaults-185-billion-debt-leaving-state-businesses-holding-bag
Little did California businesses know that they were cosigners on the state’s nearly $20 billion loan from the federal government that was used to cover California’s unemployment fund shortfall during the COVID pandemic. This ugly truth became apparent when the state recently decided to stop making payments on this loan. When a state defaults on its federal unemployment insurance loan, federal law requires that the state’s businesses repay the loan.
What makes this default even more egregious is that the stone-age-era IT system of the state’s Employment and Development Department (EDD) opened the floodgates to bad actors, permitting more than $30 billion in fraudulent unemployment claims during the pandemic. Those receiving fraudulent payments include incarcerated felons, a person impersonating a one-year-old, and a person impersonating Senator Dianne Feinstein. A single residential address received checks for around 60 separate individuals filing from that address.
This could have been avoided with a competent EDD. But this department’s performance has been deficient for decades, and California businesses, many of which are struggling, are left paying for blatant and costly mistakes that should and could have been solved years ago.
With an unpaid federal unemployment insurance loan, the federal government raises the unemployment insurance tax immediately by 0.3 percent on each business within the state, and an additional 0.3 percent each year after that until the loan is fully repaid. The normal federal unemployment insurance tax rate is 0.6 percent per year, which means that California businesses will be paying several multiples of the normal federal tax rate before the loan is retired.
https://thehill.com/homenews/state-watch/californias-governor-says-states-budget-deficit-has-grown-to-nearly-32-billion/
SACRAMENTO, Calif. (AP) — California’s budget deficit has soared to nearly $32 billion, Gov. Gavin Newsom said Friday as he announced a plan that would cover the shortfall this year while potentially leaving the state with multibillion-dollar deficits in the future.
Newsom, a Democrat in his second term, proposed no major tax increases for individuals or spending cuts across the state’s most important programs, including those impacting public education, health care and homelessness. His plan would cut spending by about $10.6 billion — about $1 billion more than what he proposed in January — while covering the rest of the deficit through a combination of borrowing and delaying some spending while shifting other expenses to different sources.
California has a progressive tax system that relies on rich people, meaning it gets about half its revenues from just 1% of the population. When the economy is good, rich people pay more in taxes and revenues can soar quickly. When the economy is bad, they pay less and revenues can drop just as fast.
That’s why Newsom said it is common for future budgets to be unbalanced, especially during lean years. He also said Democrats, who control state government, have learned to use the volatile tax system to their advantage. Newsom’s plan would leave California with $37.2 billion in various savings accounts, money that he said could be used to balance future budgets.
“A progressive tax system allows us to stack away billions and billions of dollars for exactly this moment,” Newsom said.
Little did California businesses know that they were cosigners on the state’s nearly $20 billion loan from the federal government that was used to cover California’s unemployment fund shortfall during the COVID pandemic. This ugly truth became apparent when the state recently decided to stop making payments on this loan. When a state defaults on its federal unemployment insurance loan, federal law requires that the state’s businesses repay the loan.
What makes this default even more egregious is that the stone-age-era IT system of the state’s Employment and Development Department (EDD) opened the floodgates to bad actors, permitting more than $30 billion in fraudulent unemployment claims during the pandemic. Those receiving fraudulent payments include incarcerated felons, a person impersonating a one-year-old, and a person impersonating Senator Dianne Feinstein. A single residential address received checks for around 60 separate individuals filing from that address.
This could have been avoided with a competent EDD. But this department’s performance has been deficient for decades, and California businesses, many of which are struggling, are left paying for blatant and costly mistakes that should and could have been solved years ago.
With an unpaid federal unemployment insurance loan, the federal government raises the unemployment insurance tax immediately by 0.3 percent on each business within the state, and an additional 0.3 percent each year after that until the loan is fully repaid. The normal federal unemployment insurance tax rate is 0.6 percent per year, which means that California businesses will be paying several multiples of the normal federal tax rate before the loan is retired.
https://thehill.com/homenews/state-watch/californias-governor-says-states-budget-deficit-has-grown-to-nearly-32-billion/
SACRAMENTO, Calif. (AP) — California’s budget deficit has soared to nearly $32 billion, Gov. Gavin Newsom said Friday as he announced a plan that would cover the shortfall this year while potentially leaving the state with multibillion-dollar deficits in the future.
Newsom, a Democrat in his second term, proposed no major tax increases for individuals or spending cuts across the state’s most important programs, including those impacting public education, health care and homelessness. His plan would cut spending by about $10.6 billion — about $1 billion more than what he proposed in January — while covering the rest of the deficit through a combination of borrowing and delaying some spending while shifting other expenses to different sources.
California has a progressive tax system that relies on rich people, meaning it gets about half its revenues from just 1% of the population. When the economy is good, rich people pay more in taxes and revenues can soar quickly. When the economy is bad, they pay less and revenues can drop just as fast.
That’s why Newsom said it is common for future budgets to be unbalanced, especially during lean years. He also said Democrats, who control state government, have learned to use the volatile tax system to their advantage. Newsom’s plan would leave California with $37.2 billion in various savings accounts, money that he said could be used to balance future budgets.
“A progressive tax system allows us to stack away billions and billions of dollars for exactly this moment,” Newsom said.
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https://nbcnews.com/news/us-news/california-gov-newsom-unveils-historic-975-billion-budget-surplus-rcna28758
SACRAMENTO, Calif. — California is entering the next budget year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.
Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal year, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.
That means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans additional spending to tackle the ongoing drought, to help more women get abortions in California and to offset rising costs of food, gas and other goods due to inflation.
Wasn't housewives.
Exit polling had Joey winning women 57% to 42%.
Trump won Men.