They are still hugely in debt
False. California's short-term budgetary debt is at zero. Long-term debt obligations are modest. This is due to years of budget surpluses which have been used to both save funds to cover future recessions and deficits; eliminating short-term debt entirely; and reduce long-term debt obligations to manageable levels thru pre-funding of pensions. But, Alan wants to believe in his false narrative and keep posting it over and over.
which will continue for another three years according to that official.
It's a forecast of what future budgets
might look like not what they
will be; they're budget forecasters and not time travelers. The finance director addressed possible scenarios for budget adjustments to offset reductions in revenue if they occur due to recession. They may choose to run a deficit for a few years rather than cut spending on important priorities as a better long-term plan.
I mentioned this in a post yesterday.
"The state has shown an ability and willingness to make adjustments when needed, but could choose to run a deficit if it believes that will provide better stability and growth for economic conditions in the long term." Last night, I heard Biden make a similar argument in his Covid economic relief plan in addressing the debt that would be incurred.
Biden:
"I know what I just described does not come cheaply, but failure to do so will cost us dearly. The consensus among leading economists is we simply can not afford not to do what I’m proposing. Independent, respected institutions from around the world, from the Federal Reserve to the International Monetary Fund have underscored the urgency. Even Wall Street firms have reinforced the logic. If we invest now boldly, smartly and with unwavering focus on American workers and families, we will strengthen our economy, reduce inequity and put our nation’s longterm finances on the most sustainable course. And where we’re making permanent investments, recurring investments."
