[bushbaba]

The excess tax revenues was also caused by overly inflated IPOs and more than normal capital gains. At least in CA, if the surplus is large enough the government is legally required to give the money back if not spent.

Gavin Newsom in this case is acting like Robinhood. Taking from the rich and giving to the less well off.

[0xy]

He's taking from the children of the recipients, considering California's current debt load. When you're underwater, a "profit" doesn't mean you're suddenly flush with cash. It's still debt-funded frivolity, which will paid by children.

[KptMarchewa]

Current debt is being quickly inflated away. Also, $143 billion debt is peanuts for 3 trillion dollars economy like California.

So, your "children" comments are pure demagogy.

[0xy]

That's over half the usual budget for California, so no it's not "peanuts". The ability to service debt is a function of the government's resources, not the entire economy. As pointed out, the year was anomalous for California, who usually runs a deficit of over $50,000,000,000.

Seems like this is a case of a compulsive indebted gambler patting himself on the back for a good streak at the tables.

California's surplus came from temporarily increased CGT receipts. That trend will be reversed this year considering the markets, and they'll be back to bleeding 10 figures.

[giantrobot]

Government debt is not like personal debt. Governments debt is structured and has fixed predictable rates (bonds etc). There's no incentive to pay down debt because the debt holders want long term structured repayment.

The only time government debt is bad is when the government can't make the payments.