The great state of California has well over $100 Billion in debt obligations. Our annual revenues are roughly $90 Billion, of which we will overspend again this year (known as the “Deficit”) by somewhere in the neighborhood of $10 Billion. We are racking up an amazing, and soon to be, un-serviceable debt.
What’s the big deal? Paying interest on the debt, leaves less of the budget “pie” to slice up for much needed services like firefighters, teachers, new schools, police, freeways, and helping the poor.
How do we save California?
The only hope is a constitutional amendment that removes from the Legislature the ability to determine how big the budget is. You see, our legislature “slices the pie” = decides where to spend our tax dollars. That’s quite alright and a power they are entitled to because they are elected. But “they”, the Assembly members and Senate members, also decide “how big” the pie is. That’s the problem.
We must remove this power and make it a simple determination by the Legislative Analyst’s Office (LAO) in conjuction with the State Board of Equalization and Franchise Tax Board (these are the major taxing agencies in California). Don’t we all agree that the budget must never, ever, exceed the projected revenues. Once, the LAO decides how big the budget will be, they can allocate monies for repayment of debt and give the remaining money to the Legislators and say: “have fun, slicing the pie.”
The result will be a cash surplus within 10 years… and a California that is Saved!
Help me be the man who saves California. Spread the idea!