Tuesday, June 09, 2009

Joint Finance Net Deficit

The Joint Finance Committee (Motto: "Smoke a joint, do finance!") has created a "budget" which is even worse than that of Three-Card-Monte Doyle's.

Believe it or not, folks, that's true.

How so?

The structural deficit. The "structural deficit" is very simple.

Let's say that you write checks to cover your monthly bills, but don't have your paychecks entered in your checkbook at the time. So "on the books," your balance is Big Overdraft. But you won't release those checks until you make your deposits, so the bank will never know the difference.

Same with the State. At the end of the JFC's 2-year budget, the Big Overdraft (structural deficit) will be $2.258 BILLION.

Even Doyle didn't have that kind of nerve (or maybe he doesn't smoke). His Big Overdraft was only $1.574 BILLION, which is about average for him and for the budgets signed during T Thompson's reckless regime.

HT: Chris Schneider

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