|California is the Greece of the USA.|
Failed Socialism in the People's Republic . . .
- State spending is projected to increase by 12 percent.
- A $13 Billion budget deficit.
- 10% unemployment to 2014.
The Legislative Analyst's Office for the People's Republic warns of declining tax revenue and a rocky statewide economic outlook that will lead to budget shortfalls for years to come.
California faces a $3 billion shortfall through the remainder of the fiscal year and is expected to have $10 billion less than the state needs in the fiscal year that will start July 1, resulting in a $13 billion gap over the next 18 months.
The current budget was based on a combination of spending cuts, fee hikes and projections of higher tax revenue in the months ahead. Republican lawmakers, who opposed tax increases, had warned that the revenue projections were overly optimistic, reports the Associated Press.
He also noted that state spending is projected to increase by 12 percent in the fiscal year that will start July 1.
"It indicates that a lot more needs to be done to get California's budget under control, and that does not happen through tax increases," he said.
California State University trustees voted to increase annual undergraduate tuition to 9 percent, $5,472 to $5,970. The system has more than 400,000 students.
The legislative analyst said a double-dip recession was not likely, it did downgrade its forecast for employment growth and housing permits. It projects California's jobless rate will remain above 10 percent through the middle of 2014 and above 8 percent through 2017.