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Congressman Tom McClintock

Representing the 4th District of California

Deficits Made in California Should Stay in California

January 13, 2010
Speeches

Deficits Made in California Should Stay in California

January 13, 2010
 
Mr. Speaker:
 
Yesterday I addressed the demand of Gov. 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 the brittle economy and cost $10 billion in lost revenues in just nine months.
 
California’s revenue problem isn’t the only thing made in Sacramento. Its spending problem is also self-inflicted.   
 
When Schwarzenegger took office, California was spending $78 billion. Instead of hitting the brakes, he hit the accelerator and in just four and a half years increased spending by a stunning 40 percent. When state revenues peaked in July of 2008 at an all-time high of $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 other 49 states as well.