California Governor, Without Republicans to Obstruct Him, Creates Budget Surplus
In February Texas republican Governor Rick Perry made a trip to California. His supposed intent was to lure California businesses to Texas. The premise is that Texas is more business friendly than California. To be sure, Texas is a state that gives away over $19 Billion in taxpayer dollars even as it cuts basic and higher education. Instead of reinvesting its surplus in human capital, it is attempting to change the Texas constitution to return surplus dollars.
California has been seen as a basket case with regards to its exploding budget deficits. Interesting enough this was occurring during the administration of Republican Arnold Schwarzenegger. He attributed the deficits to reduced tax revenues and overspending. He cut programs in draconian fashion but could never escape the reality that he was making the problem worse. Ultimately he did what both Reagan and Bush did, leave exploding deficits to their successors.
Democrats President Bill Clinton, President Barack Obama, and Governor Jerry Brown did not attempt an ideological game with blinders to the actual results. They tried basic arithmetic. They raised taxes. Interesting enough, the results were the same.
Bill Clinton got a balance budget with a surplus. Barrack Obama is seeing a budget deficit that is shrinking faster than anyone expected. Suffice it to say that the budget deficit hole left by two wars, two massive tax cuts, and a massive drug program on the credit card by the previous administration along with an irresponsible & intransigent Congress cannot be solved in two terms.
Jerry Brown remembered basic arithmetic as well as he brought California to a budget surplus. He raised taxes on the wealthy and cut programs (some more than he should). Does this sound familiar, the balanced approach? Time and time again the evidence is out there that it works and it improves the economy for all.