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Started By
Message
re: LA Politicians can't budget
Posted on 12/11/18 at 9:16 am to WPBTiger
Posted on 12/11/18 at 9:16 am to WPBTiger
quote:.
Yeah, lets spend money we don't actually have yet
this is the biggest thing IMO. I understand the necessity in budget planning, but they actually spend it. They (nor any government agency it seems) ever operates off of ACTUAL funds.
0
Posted on 12/11/18 at 9:18 am to Mingo Was His NameO
quote:
Sounds like you're the one that doesn't know how to budget
It is what it is. I have to budget on what is known and spend based on what I have. I can't just tax people to cover my deficit when I didn't account for things properly.
Posted on 12/11/18 at 9:20 am to Areddishfish
quote:
I have to budget on what is known
Tax revenue is way more guaranteed that your income. You could get hit by a bus tomorrow and be on long term disability. The state is going to collect tax revenue.
Posted on 12/11/18 at 9:24 am to Areddishfish
quote:It's voila! But point taken.
wahlah
Posted on 12/11/18 at 9:32 am to Mingo Was His NameO
quote:
Tax revenue is way more guaranteed that your income.
Tax revenue itself, yes. But the amount not so much. Hence, the great surprise of everyone with the surplus or as in previous years, deficits.
Posted on 12/11/18 at 9:34 am to Areddishfish
quote:
wahlah
like walla walla washington?
Posted on 12/11/18 at 9:49 am to High C
quote:
wahlah
There's an entertaining thread regarding this unique interpretation from a couple of years back maybe.
Posted on 12/11/18 at 9:49 am to Areddishfish
quote:
LA Politicians can't budget
using your money, why should they care?
Posted on 12/11/18 at 9:50 am to Tmcgin
quote:
29 billion budget and off by $130m in revenue projections
The state revenues are around 9 Billion dollars the rest is federal funds.
So when they tell you they need to raise taxes 600 million or there will be a budget crisis so they do it, we should be happy they really only needed 470 million instead but stuck us for 600???
Posted on 12/11/18 at 9:50 am to WildManGoose
I realize now what I should have typed but that's what my mind blurted out haha
Posted on 12/11/18 at 10:07 am to Areddishfish
quote:
Imagine a common citizen planning their budget around a bonus that may or may not come.
Imagine how a large company budgets. That is the more appropriate comparison. Companies always are forecasting and revising revenue projections, and making changes to their budget as needed. LA gets something like 29 billion a year in revenue from all sources (including federal funds). If their revenue forecast is 99 percent accurate, that means they are 290 MILLION off on their projection. And I think we should be able to agree that 99 percent accurate is pretty damn good.
Posted on 12/11/18 at 10:09 am to Areddishfish
Because a huge portion of state tax revenue comes from sales taxes and royalties from oil and gas leases, the amount the state gets in in taxes is very volatile year to year. If gas prices are high, the state gets more money. If gas prices are low, the state gets less. If people spend more money, the state makes more money.
For that reason, the state is always budgeting with a moving target.
For that reason, the state is always budgeting with a moving target.
Posted on 12/11/18 at 10:11 am to Areddishfish
Never seen so many people mad about a surplus. We’re in debt. we need this
This post was edited on 12/11/18 at 10:28 am
Posted on 12/11/18 at 10:11 am to LSUFanHouston
quote:
If their revenue forecast is 99 percent accurate, that means they are 290 MILLION off on their projection.
I think some of you are focusing on the wrong thing though. What happens when they are off 1% in a bad way? More taxes. Even though they were 99% accurate, that still leaves them with a shortage of 290 million dollars which isn't exactly a few cents.
The problem with government in general but especially here is they will project x revenue at say $100 million and then go on to say "Alright we expect to collect $100 million so therefore we have $100 million to spend." That's how deficits happen.
This post was edited on 12/11/18 at 10:14 am
Posted on 12/11/18 at 10:13 am to crewdepoo
quote:
We’re in dept. we need this
In what?
Posted on 12/11/18 at 10:14 am to Mingo Was His NameO
The OT dept
Posted on 12/11/18 at 10:15 am to Areddishfish
quote:
I think some of you are focusing on the wrong thing though. What happens when they are off 1% in a bad way? More taxes
No it doesn't, it typically means a deficit or borrowing money. If what you are saying is the case there'd be new state taxes all the time. Most of the tax increases you've seen lately are your localities, hell the state sales tax rate went down this year.
quote:
Even though they were 99% accurate, that still leaves them with a shortage of 290 million dollars which isn't exactly a few cents.
When you're talking about a $29 billion budget, it essentially is. That's delaying a project on one bridge. Ideal? No. Some huge deal? Absolutely not.
Posted on 12/11/18 at 10:26 am to Mingo Was His NameO
quote:
it typically means a deficit or borrowing money
See that's how come we are in the shape we are. You can't borrow your way out of debt. You'll always be in debt at that rate, see federal government. It's irresponsible but it isn't their money so I don't think they view it that way. Government needs to adopt the mindset of spend what they have and not resort to cuts and taxes when they miscalculate.
Posted on 12/11/18 at 10:30 am to Areddishfish
quote:
See that's how come we are in the shape we are. You can't borrow your way out of debt. You'll always be in debt at that rate, see federal government. It's irresponsible but it isn't their money so I don't think they view it that way. Government needs to adopt the mindset of spend what they have and not resort to cuts and taxes when they miscalculate
I mean what you are saying is impossible. There's not a government in the world that does this (or corporation for that matter). Would I like that to happen? Sure, but more realistically what we should do is control spending and borrow responsibly and through the correct channels.
I'm not pro big government at all, and really all I care about politically is fiscal responsibility, but I'm also realistic and realize that government accounting is complex. Especially when your revenues are heavily driven off of a commodity market and your secondary revenues are dependent on a constituency that relies on a commodity market.
Posted on 12/11/18 at 10:41 am to Mingo Was His NameO
quote:
really all I care about politically is fiscal responsibility
Does that really exist anymore or is it more of a that would be nice, but scenario?
I feel like any time you glance at government budgets, especially the federal one, you see so much money going to things that leave you scratching your head.
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