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SACRAMENTO – In advance of the governor announcing his budget next week, the nonpartisan Legislative Analyst’s Office recently reported that there is a $7.5 billion surplus in the state’s general fund. In an op-ed recently printed in the San Francisco Chronicle, Senator John Moorlach (R-Costa Mesa) cautions that even given the surplus California’s underlying fiscal condition is awful, and he outlines some proposals to improve the state’s economy that he thinks the governor would be wise to prioritize in the budget.
Excerpted op-ed:
While you’re struggling to make ends meet, the California Legislative Analyst’s Office reported that this year the state’s coffers will overflow with an additional, unexpected $7.5 billion of your tax dollars. Will the governor propose to spend it or save it? … As a serious corrective, here are some proposals Brown should announce in his new budget to smartly use that $7.5 billion in unexpected revenues. … Pay off bonds. … Make another prepayment on public employee pension debt. … Get more aggressive in paying down the state retiree medical liabilities. … Pay cash. Get really radical and start making infrastructure investments without borrowing … Jan. 10 will let you know if Brown is trying to balance his budget with some serious balance-sheet debt reductions. Otherwise, his legacy will be presiding over a financial bottom-dweller state.
Click here to read the full op-ed in the San Francisco Chronicle.