Good News and Bad News - We Have a Budget Surplus

The Governor has released the May Revision of his Budget Proposal, which includes a total budget of $451.7 billion, with $267.8 billion going towards a state spending plan.

You can read it HERE

The good news? We have a projected $75 billion surplus. The bad news? We have a projected $75 billion surplus.

Having an additional $75 billion after most citizens have been bearing the brunt of a pandemic for over a year proves that the tax burden on families and workers is too high and that the government is taking too much hard-earned taxpayer money.

The Governor is proposing $12 billion in direct stimulus payments in the form of $600 checks, but realistically this one-time program will only provide some temporary relief while failing to create any meaningful change.

What Californians deserve are long-term, structural solutions that focus on affordability and reducing the high cost of living. People and businesses are leaving our state in record numbers.

While I agree with a few of the Governor’s priorities, this budget assumes that our problem is a lack of funding; that all we need to do to address affordability, homelessness, lack of housing, wildfires, rising violent crime rates, drought, healthcare, unemployment, a crumbling infrastructure, mental health, business closures, school closures, unreliable and expensive energy, and overall government dysfunction (especially EDD) is to throw money, your money, at it and hope the problems disappear.

Unfortunately, this budget offers no real solutions, just more spending. If spending were the only thing holding us back from solving problems, more progress would have been made by now. Each year, the state budget continues to increase, yet we’re still talking about the same problems that have plagued us for years, and in some cases, decades.

Additionally, the majority of these increased expenditures are one-time deals for new programs that provide no structural change. In many instances they will be left unfunded in the future, which will drain resources from existing programs or lead to a call for more tax increases.

We need to go back to basics, not towards more bureaucracy.

Now the month-long budget negotiations begin, and hopefully, we can work towards achieving comprehensive, bipartisan solutions.