OC Political

A right-of-center blog covering local, statewide, and national politics

Asm. Wagner: Does the Governor’s Budget Pay Down “Wall of Debt” or Simply Add More Bricks to the Wall?

Posted by Newsletter Reprint on January 19, 2013

This came over the wire from Assemblyman Don Wagner’s office yesterday…

California State Assembly Seal
Don Wagner | District 68


Does the Governor’s Budget Pay Down “Wall of Debt” or Simply Add More Bricks to the Wall?

Governor Brown has made paying off budgetary debt the cornerstone of his fiscal austerity program.  The Republican Leader of the Assembly referred to this as “channeling his inner Republican” in a recent radio interview.  This raises the following questions: what is budgetary debt?  Why is it important to pay it off?  Does the Governor’s budget meet that challenge?  The Fact Check found:
  • California budgetary debt topped $35 billion at its height.  As of the end of the 2012-13 budget year, California will owe $27.8 billion in budgetary debt.
  • While the Governor committed to repaying debt if his taxes were approved, his current budget lowers debt payment by $1 billion, putting repayment behind schedule.
  • Using one-time money to pay back budgetary loans would help the state avoid a fiscal cliff in the future.

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3 Park Plaza, Suite #150
Irvine, CA 92614
(949) 863-7070, (949) 863-9337 fax
State Capitol
Sacramento, CA 95814
(916) 319-2068, (916) 319-2168 fax
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