Saturday, January 3, 2015
Hate to Rain on Your Parade But...
Despite notions to the contrary, that regular reserve can be negative and on a seasonal basis often is. It can be negative at the end of the fiscal year as well. So money can go into the new rainy-day fund and be offset by negativity in the regular reserve. What voters really were endorsing was the uncontroversial concept that it is nice to save when things are good to cushion the effects of future Hard Times. But in fact, ballot propositions being what they are, they actually approved more complicated formulas.
The Sacramento Bee is carrying a piece on what those complications entail. See http://www.sacbee.com/news/politics-government/article5369607.html. Note in particular that with UC engaged in a budget conflict with the governor, it is hard to see how those complications can help the UC side.
Still, cheer up. The problems won't start until next week when the governor makes his budget proposals. So enjoy your weekend: