Standard & Poor is Worried About California’s Budget Deficit
Standard & Poor is Worried About California’s Budget Deficit
The credit rating of California has not been lowered by Standard and Poor. However, the rating agency observed that the recent development in the budget of Golden State is something to be worried about. Standard & Poor is a little bit disgusted about what is taking place in California.
A review was conducted last Tuesday and it was found out that the income tax revenues were below the target to be collected for the month of April. Standard & Poor is very much worried about this finding about income tax revenues collection. California State Controller John Chiang was stopped to withhold the legislative pay based on budget quality of employees because a judge ruled that it is illegal to do it.
Gov. Jerry Brown’s has his own forecast regarding personal and corporate income taxes for the fiscal year. According to the Legislative Analyst’s Office estimate made last week, the state of California is behind its tax collection target by more or less $3.5 billion for the fiscal year.
A judge from Sacramento Superior Court supported the State lawmakers in accusing Controller John Chiang for allegedly violating the constitution when he withheld their pay for twelve days last summer. John Chiang submitted a budget that is not properly balanced.
According to S&P, the decision is not a solution to solve the budget deficit. The decision simply opens the door for Legislature to make adjustments in budget allocation which may be politically expedient but may not be an effective solution to fix the budget deficit. What is needed is additional spending cuts in order to decrease the risk of an imbalanced budget for the fiscal year 2013.
BY THE NUMBERS
California community health centers was awarded on Tuesday by Obama $122 million under the embattled Affordable Care Act. The grants will be allocated to different centers. Large health centers like Davis, Visalia and East Paolo will receive $ 5 million; others like Madera center will receive $4.8 million and for small centers like the one in Yuba City the allocated amount is $500,000.
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