State taxpayers got more bad news this week when the State Senate released its proposed early action plan for addressing California’s budget shortfall in which we can find nothing of substance that differs from Governor Newsom’s plan, which earlier we criticized here. In short, despite the deficit arising as a result of excessive spending, not inadequate revenue, and during a period of healthy economic growth, Mr. Newsom and the State Senate propose to invade reserves, raise taxes, borrow money, shift funds, defer some spending and cut some programs but not to cut employee staffing, compensation or benefits. If enacted, their plan will leave the state unprotected from the next recession and a sitting duck for more tax increase proposals, which public employee unions are already polling. If you’re in any doubt as to the identity of the sacred cows and sacrificial lambs referred to in the subject line of this email, perhaps this essay will be helpful.
