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California's Budget Miracle A Mirage After All

Tyler Durden's picture




 

Just under a month ago, the mainstream media and blogging coat-tail-riders all hailed the miracle that was a huge windfall rise in California's tax receipts as a sign; a glimpse of what was to come from our centrally planned utopian recovery. Surpluses, taxes up, life is good. Unfortunately, as is always the case in reality, if its too good to be true, then it is! The LA Times reports that the historic $5bn revenue bump appears to have been an accounting anomaly! Just as state accountants were starting to allocate the magical inflow of tax receipts, Governor Brown's administration says the extra money was "likely the result of major tax law changes at the federal and state level having a significant impact in the timing of revenue receipts." Taxpayers were paying a share of their bill early, getting income off their books in the hope of limiting exposure to the tax hikes that recently kicked in. The administration was expecting that money to arrive in April. Now, officials are saying it won't, and that just as January's receipts soared, they'll be offset by a spring plunge. We need another miracle, stat!

 

Via The LA Times,

The surge of revenue that showed up unexpectedly in state coffers last month may well be offset by a revenue dip in coming months, according to Gov. Jerry Brown's administration.

 

The surprise money has been the source of much speculation in the Capitol. Unanticipated tax receipts filled state coffers with more than $5 billion beyond initial projections for January — more tax dollars than are allocated to the entire state university system in a year.

 

The revenue bump was historic. But the question for budget experts was whether lawmakers could begin allocating the windfall toward government programs and tax breaks — or whether the money amounted to an accounting anomaly.

 

Brown's budget office now advises in an official cash report that it is probably the latter. Lawmakers need not do much reading between the lines to understand that the governor does not see the revenue boost as an occasion to pack the budget with extra spending.

 

The report says the extra money was "likely the result of major tax law changes at the federal and state level having a significant impact in the timing of revenue receipts."

 

That is: Taxpayers were paying a share of their bill early, getting income off their books in the hope of limiting exposure to the tax hikes that recently kicked in.

 

The administration was expecting that money to arrive in April. Now, officials are saying it won't, and that just as January's receipts soared, they'll be offset by a spring plunge.

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Tue, 02/19/2013 - 14:15 | 3256699 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Oops!

Tue, 02/19/2013 - 14:26 | 3256759 JLee2027
JLee2027's picture

The Laffer curve is a bitch.

Tue, 02/19/2013 - 14:41 | 3256818 I am more equal...
I am more equal than others's picture

Frau Froma Harrop had an editorial a week or two ago gloating over the $5 billion.  She spouted that liberalism in its hideous Califorincation form was the WAY to govern.  Opps.  Not.  Reality is a bitch that just slapped that mess back to 'Dumb and Dumber.' Sorry Frau Fromma - the shit pie is horrible..... would you like some Ketchup?  John Kerry has a deal on Heinz.

Tue, 02/19/2013 - 14:52 | 3256866 ACP
ACP's picture

This is the part where Jerry Brown sticks his fingers in his ears and yells, "LALALALALALALA!!! I'M NOT LISTENING!!! LALALALALALALALALA!!!"

Tue, 02/19/2013 - 16:21 | 3257237 chumbawamba
chumbawamba's picture

Don't worry, they are making up for the shortfall by collecting it out of the asses of parolees.  And also by hijacking and kidnapping people, throwing them in a cage and holding their automobile for ransom.  Based on the people I met during the night I spent in jail a couple weeks back, they should be at a surplus again in no time.  Plenty of parolees to fleece in this state.  And when they run out of money then I guess it's to the FEMA camps.

As for my abductees, they will be paying my way out of their salary for the next year or so.  I think the sheriff will also be contributing to my party fund.  I will use the windfall to teach other people how they, too, can profit from their unlawful arrest and incarceration.

America: what a country!

I am Chumbawamba.

Tue, 02/19/2013 - 21:17 | 3258000 Stax Edwards
Stax Edwards's picture

Nobody could have seen this coming. Nobody.

Wed, 02/20/2013 - 01:38 | 3258574 Theosebes Goodfellow
Theosebes Goodfellow's picture

Stick his fingers in his ears? Are you kidding me? With so many more socialist utopian acts yet to be performed? The Moonbeam unit cannot rest on his laurels yet:

CA Gov. Brown Paroles 377 Convicted Killers

http://www.breitbart.com/Big-Government/2013/02/18/Brown-paroles-convict...

And don't forget:

CA Property Crimes Jump After Brown Releases Prisoners

http://www.breitbart.com/Big-Government/2013/01/06/CA-property-crimes-jump

 

 

Tue, 02/19/2013 - 14:41 | 3256828 walküre
walküre's picture

Accounting "anomaly"

All roads lead to 200 West Street. Look no further.

Tue, 02/19/2013 - 15:32 | 3257020 A Nanny Moose
A Nanny Moose's picture

Enron learned everything it knew from these fucktards.

Tue, 02/19/2013 - 15:51 | 3257093 cpzimmon
cpzimmon's picture

Please don't call those people fucktards. It's insulting to fucktards.

Tue, 02/19/2013 - 16:06 | 3257165 goldfish1
goldfish1's picture

A new adjective: dipshitidiots

The plural of such known as dipshitidians; also known as the race of dipshitidians.

 

Tue, 02/19/2013 - 14:52 | 3256869 Greshams Law
Tue, 02/19/2013 - 14:32 | 3256787 kliguy38
kliguy38's picture

If you are still sitting in that state by the end of this year then you can bend over and kiss your ass goodbye. This is just the tip of the iceberg......this is ground zero for the state and local budget implosion coming. This will be the first figuritively "green glass" state.....

Tue, 02/19/2013 - 14:45 | 3256844 Yancey Ward
Yancey Ward's picture

Sorry, that ass was taxed away in 2011.

Tue, 02/19/2013 - 16:36 | 3257295 eatthebanksters
eatthebanksters's picture

I am loving it...I live here and can't wait for this shit to blow up in the faces of those morons in Sacramento. Moonbeam the dreamer...well, tell me whan you figure out how to pay the bills with dreams!  Rick Perry must have a big Texas sized shit eating grin o his face rght about now...

Tue, 02/19/2013 - 16:46 | 3257337 Meat Hammer
Meat Hammer's picture

Agreed.  I'm in the belly of the beast and I want a front row seat to the "WTF just happened?" looks on the faces of the bastards who voted for this.  Despite the people, I love California; it's my home and I'm not leaving it to the parasitic libtards.  When baby-mama on EBT is fighting against bloated-union-pension recipient for the tax crumbs it's going to be quite the comedy.

Tue, 02/19/2013 - 18:14 | 3257599 DoChenRollingBearing
DoChenRollingBearing's picture

Non-California resident Bearing (but certainly having appreciated the beauty of your state) would suggest to you worthies living there to consider just not playing anymore.  Retire.  Buy/sell for cash.  Keep your heads low, maybe this will either blow over (aah, probably not) or at least many of you live in a place with a nice climate.

And, yes!  Keep the popcorn handy for the fun to come!

Tue, 02/19/2013 - 18:53 | 3257693 Miffed Microbio...
Miffed Microbiologist's picture

This is the plan many of us are implementing Do. We know what is coming and are frantically networking with other like minded people. It's hard to leave your home of 30 years even though it has degraded into a cess pool caused by ivy tower academia and an endless stream of parasites. However, I do at times feel like a Jew in the 1930s...better get out of here. We do have a place to go in Wash state if it gets truly bad but for now it's hunker down. Perhaps ultimately we'll help others. It looks like we're going over the cliff first so other states can see how it all goes down. Cali seems to be the leader in all things good and bad. Hope you enjoy the show.

Miffed:-)

Tue, 02/19/2013 - 20:26 | 3257883 nightshiftsucks
nightshiftsucks's picture

Where do you meet like minded people,i'm in San Ramon.

Tue, 02/19/2013 - 21:19 | 3258006 Meat Hammer
Meat Hammer's picture

nightshift, you being in the Bay Area will make it tough to find like minded people, but they're out there.  Check FB for local libertarian groups or just casually talk to your neighbors to see what they think the future holds.  If they start talking about the rich paying their fair share, nod your head and then go talk to the next neighbor, who may not be a statist cocksucker.

Tue, 02/19/2013 - 14:16 | 3256702 Hedgetard55
Hedgetard55's picture

No way! Whocouldanode?

Tue, 02/19/2013 - 14:27 | 3256765 myptofvu
myptofvu's picture

Lazy Californians, if they tried harder they could find a way to make this the Guns fault, or Bush's fault.

Tue, 02/19/2013 - 14:57 | 3256891 CaptainObvious
CaptainObvious's picture

Naw, it's Facebook's fault. Facebook was supposed to create a shit ton of instant millionaires for the People's Republic of California to tax into an early grave, or at least into moving to Nevada. Curse you, Zuckerberg!

Tue, 02/19/2013 - 15:39 | 3257045 A Nanny Moose
A Nanny Moose's picture

Understanding Austrian Econ/Anarcho-capitalism, means always having to apologize for being able to say, "I told you so."

Tue, 02/19/2013 - 16:08 | 3257177 goldfish1
goldfish1's picture

How To Solve Our Unemployment, Economic, and Mortgage Problems, California -style

http://news.goldseek.com/GoldSeek/1361227178.php

Tue, 02/19/2013 - 14:16 | 3256703 nobusiness
nobusiness's picture

Shock! and disbelief!

Tue, 02/19/2013 - 15:00 | 3256905 McMolotov
McMolotov's picture

And unexpected! This whole country is a big ass mirage.

Potemkin Nation.

Tue, 02/19/2013 - 14:17 | 3256711 insanelysane
insanelysane's picture

See Greece....

Tue, 02/19/2013 - 14:17 | 3256715 r00t61
r00t61's picture

Why not just do what the FedGov does and change the accounting rules so that the "anomaly" just goes away?

Tue, 02/19/2013 - 14:18 | 3256722 centerline
centerline's picture

Or they need another anomaly!

The new normal.

Tue, 02/19/2013 - 14:21 | 3256738 GolfHatesMe
GolfHatesMe's picture

Attention HAARP.  We need some snow over here

Tue, 02/19/2013 - 19:11 | 3257732 Northern Lights
Northern Lights's picture

How about just turning all negative amounts on the book into positive amounts using "absolutes" arithmatic.

Wed, 02/20/2013 - 00:22 | 3258467 jerry_theking_lawler
jerry_theking_lawler's picture

so, instead of mark-to-market, its gonna be mark-to-anomaly??

Tue, 02/19/2013 - 14:19 | 3256716 Sudden Debt
Sudden Debt's picture

HUMMERS FOR EVERYBODY!!!!

just a idea, but why not tax everybody on their supposed salary they'll make for the next year or so?

AS A NON CALI CITIZEN, I APROVE THIS!!!

Tue, 02/19/2013 - 14:39 | 3256816 Poetic injustice
Poetic injustice's picture

Except government workers, for their dedicated work they should receive bonus as big as of their next year's salary.

Tue, 02/19/2013 - 16:22 | 3257244 Nick Jihad
Nick Jihad's picture

You may think you're only joking, but there is precedent for this in child-support law.

Tue, 02/19/2013 - 19:10 | 3257726 Northern Lights
Northern Lights's picture

You may think you're only joking, but there is precedent for this in child-support law.

 

Yeah, and God help you if you fall below expectations.  As a CEO, they'd just fire you and give you an exit package worth millions.  As a father, you'll go to jail!

Tue, 02/19/2013 - 14:18 | 3256719 Piranhanoia
Piranhanoia's picture

Surplus, missing surplus.  Took a long time to create the accounting error to hide all the missing money.  Offshore deposits anyone?

Tue, 02/19/2013 - 14:19 | 3256727 The Proletariat
The Proletariat's picture

..."significant impact in the timing of revenue receipts".  I am tired of .gov consistently taking from the productive and using extortion as defining "revenue"

Tue, 02/19/2013 - 14:27 | 3256763 Sudden Debt
Sudden Debt's picture

look at it like this:

You are a sheephearder. you have 100 sheep and 2 border collies to keep them under control and do the work for you.

So... every week, you kill a sheep to feed the dogs, kill one for yourself and life is good...

untill you realize... there's 52 weeks in a year... you'll be 2 sheep short... not to mention there will be a next year....

So you let other sheep come in from other flocks... other sheepheards... who also have the same problem but that's another story... and so you'll have more sheep every week.
So life is good...
untill you realize... those sheep don't produce wool... and eat the other sheeps grass... and they start painting their wool in red and blue colours... and start shooting each other...

So you notice there's a Austrian goat... and you apoint him governor... to fix your problems...

So long story short: the goat didn't solve the sheep problem and in the end the dogs killed the herd for food and you're left with nothing so you'll have to look for a real job... but.. the dogs are still there... hungry... and they kill you.

Tue, 02/19/2013 - 14:40 | 3256821 Broccoli
Broccoli's picture

Took me a second to realize you were talking about our friends the undocumented first class citizens and hasta la vista, Baby.

I am getting slow.

Tue, 02/19/2013 - 14:45 | 3256841 walküre
walküre's picture

Spoken like a true CITY SLICKER

If you have 100 sheep, you probably end up with 350 sheep p.a. minus the 104 sheep for the feeding purposes in your example.

The average ewe drops 2.5 lambs per year. One ram can service up to 50 ewes quite easily and is a happy ram.

Anyway, give or take a few sheep .. the "sheephearder" a.k.a. SHEPHERD will do just fine.

Tue, 02/19/2013 - 15:49 | 3257084 fitzpady
fitzpady's picture

Score one for Dwight Schrute...

Tue, 02/19/2013 - 14:48 | 3256850 BLOTTO
BLOTTO's picture

"Sheep" - P - Floyd

.
Harmlessly passing your time in the grassland away
Only dimly aware of a certain unease in the air
You better watch out
There may be dogs about
I've looked over Jordan and I have seen
Things are not what they seem.
.
What do you get for pretending the danger's not real
Meek and obedient you follow the leader
Down well trodden corridors into the valley of steel
What a surprise!
A look of terminal shock in your eyes
Now things are really what they seem
No, this is no bad dream.

Tue, 02/19/2013 - 15:26 | 3256972 JLee2027
JLee2027's picture

The solution is obviously infinite rehypothecation of sheep. You get some local guy (call him Ben) to print images of sheep to hand to other sheepherders as proof of ownership. In the meantime you promise you take care of and hold their sheep for them in return for a miminal fee. If they come to get their sheep back, just hand them more images of sheep in lieu of actual delivery. Therefore, you and the dogs have all the sheep they will need for many decades to come. 

Tue, 02/19/2013 - 15:40 | 3257053 Sudden Debt
Sudden Debt's picture

sounds like the most logical sollution to keep the party going :)

Tue, 02/19/2013 - 16:27 | 3257263 conspicio
conspicio's picture

Patent that shit, bro. Meme'd it

Tue, 02/19/2013 - 16:41 | 3257310 knukles
knukles's picture

And  blow up sex sheep for the goats (whatever guy sheeps are called) than you have something to sell for dessert.
Or something like that.
Slurpies.

 

come on, its not much different than horse meat FFS

Tue, 02/19/2013 - 17:47 | 3257531 The Proletariat
The Proletariat's picture

Thanks for the analogies....you sheep fuckers

Tue, 02/19/2013 - 14:19 | 3256729 EscapeKey
EscapeKey's picture

I look forward to the morons on reddit who literally circle jerked about CA's budget issues having been fixed, now all accept that they were wrong.

Do NOT follow this link or you will be banned from the site!