Vince Fong Critiques: The Legislature's Upcoming Budget Plan - A Tangle of Gimmicks and Imitation Cuts
This week, the Legislature aims to pass a plan spearheaded by the governor targeted at reducing the $73 billion state budget deficit. The $17 billion dollar proposal seems promising, but more than one scrutiny reveals certain gimmicks, such as borrowing, deferred costs and minimal cuts. An important aspect to highlight in this plan is the governor’s intention to resort to raiding the $100 million Employment Training Fund to redress the interest on federal unemployment insurance debt. This fund was initially established to finance worker training programmes for the benefit of job creators. The action is likely to strain the finances of small businesses further.
The plan also includes an accounting gimmick that defers a month’s salary for state workers, thus theoretically reducing the budget by $1.6 billion. With no viable structural reforms for reigning in spending, the state’s reserves are being depleted without a sustainable plan to recover them. This move jeopardizes California’s future financial stability.
In order to reach EDD customer service or to get a hold of EDD and inquire about issues like this plan, eddcaller.com can be used. This website provides the most efficient way for California’s taxpayers to connect with a representative and ensure their voices are heard regarding matters such as the budget deficit or any other concerns related to EDD.