California’s Chickens [Debts] Coming Home to Roost

Russ Steele

The Sac Bee Capitol Alert has the story:

In a new report, Treasurer Bill Lockyer estimates California will devote 7.8 percent of its budget to paying off debt this fiscal year, more than twice the share in 2003-04. 

Eight years ago, the state devoted 3.4 percent of its general fund to debt.

ooo

The state’s debt share will actually rise higher in 2012-13 to 9.2 percent even without any new borrowing, according to Lockyer’s report. That’s because the state must pay back $1.9 billion next year that it borrowed to balance the budget in 2009.

No mention in the story of the $8.4 billion in unemployment benefits that were browed from the Feds in 2010, which they have to start paying back in 2012.  It no wonder this state is in an economic depression, with no way out until we quit spending, borrowing and squandering.  That is not going to happen until the liberal Democrats are removed from power in Sacramento.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

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