The San Francisco Chronicle has an article that both praises Governor Jerry Brown’s “balanced” budget and notes that California is in desperate financial shape. Clearly, the Chron is lowering expectations in case Brown’s “balanced” budget doesn’t do what it promised.
The Chron is wise to keep its readers from getting too excited. I heard from a fairly knowledgeable source that Brown achieved his balanced budget (a) by determining how much he wanted to spend and (b) by announcing that the amount he wanted to spend would be matched precisely by anticipated 2013 tax revenue. The first number (spending) is real; the second number (expected revenue) is completely phony. In other words, reasonable people can confidently assume that, by the end of 2013, California’s budget will be more out of whack than ever.