On January 31 last year, the state’s General Fund had a deficit of $15.7 billion. The higher tax rates brought in new money. This, along with internal and external borrowing, made it look as if the deficit had gone with the wind, but it hadn’t. Brown called it a surplus, amid much cheering by the spendthrift legislature.
Fast forward to the end of January this year. The deficit had been whittled down to $12.6 billion. Some surplus!
Saturday, March 29, 2014
CALIFORNIA’S VANISHING ‘SURPLUS’