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Deficits Made In California Should Stay In California

Floor Speech

Date: Jan. 13, 2010
Location: Washington, DC
Issues: Taxes Foreign Aid Government Budget and Spending

Mr. McCLINTOCK. Mr. Speaker, yesterday I addressed the demand of Governor Schwarzenegger for Federal aid by noting the devastating impact that his tax increases have had on California's economy. Tax increases that were supposed to bring in $13 billion of additional revenue have, instead, crushed California's brittle economy and cost $10 billion in lost revenues in just 9 months.

California's revenue problem isn't the only thing that was made in Sacramento. Their spending problem is also self-inflicted. When Schwarzenegger took office, California was spending $78 billion a year. Instead of hitting the brakes, he hit the accelerator and in just 4.5 years increased spending by a stunning 40 percent. When State revenues peaked at their all-time high in July of 2008 at $97 billion, California was already running a $9 billion deficit.

Mr. Speaker, budget deficits that are made in California need to stay in California, and that goes for the 49 other States as well.


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