California State Senator John M. W. Moorlach (R-Costa Mesa) issued the following statement regarding the 2019-2020 budget adopted by the Senate in Assembly Bill 74:
“I voted against the budget today because it falls short of what is frustrating Californians and their needs. It is the largest budget in the history of the state thanks to tax increases and last minute pork additions. California should be on an aggressive savings spree,” Moorlach reacted.
“The extra payment of $3 billion for state pension debt is a good start, but the state should be doing more with the surplus. California has enjoyed a robust economy in recent years, but the state’s school districts, cities and counties are struggling. And the bond market is warning us a recession is on the horizon. An economic downturn hurts defined benefit pension plans, which increases employer contributions just when they are making massive budget cuts. We should be preparing now for those who will follow to pick up the pieces.”
Gov. Newsom’s budget is a record $215 billion in state funds, thanks to projections of robust tax revenues. Yet, Governor Newsom and Legislative Democrats have negotiated an additional $2 billion in new taxes. On the last day of the Budget Conference Committee’s hearings, Democrats announced more than $300 million in handouts to various local projects. While only taking small steps toward paying down the state’s massive unfunded pension and retiree health liabilities, which total more than $180 billion.