You're watching...
Mark Standriff of Frontline Strategies on the economics of the Golden State.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Honestly island.
I want you to tell us all am I writing doing mass.
Is California out of the woods is -- in the black is it a model for the nation go.
Well no and -- unfortunately that governor Jerry -- not guilty of kicking the can down the road he's trying to hide became an entirely.
You've got out a budget that's balanced basically and seven billion dollars of a debt payment defer rules of funding shifts in the and other gimmicks.
You've got spending rising twelve billion dollars this year and 125 billion dollars over the next three years.
And Elizabeth is talking about the unfunded pension liabilities I think -- 181 billion dollars.
Is -- the low end of the estimates on hearing over maybe half a trillion dollars we've got cities going bankrupt we've lost a trillion dollars in our economy do that the housing bubble.
And we had four point four million taxpayers leave California since the year -- 1998 and that's not including Tiger Woods and Phil Mickelson are on now he says that he's back in the black they've balanced the budget a new law sign that's only been done with seven billion dollars worth of gimmicks correct.
Yes and then there's also spending but -- Dutch it's a revenue projections that are speculative at best they think that the governor's new tax hike.
Is is going to generate anywhere from eight to twelve billion dollars in in new money.
But as we're finding out you're gonna get the Obama care taxes that are kicking in.
The effects of his tax hikes still yet to be seen and frankly I think we're gonna end up at the end of the day with a lot of promises going on to fill two more items I -- -- -- number one the bullet train.
-- the governor yesterday in that state of the state message he is pressing ahead with -- they've broken ground on -- that means -- 68 billion minimum.
And it in the relatively near future that they got to spend on this thing.
Yes and and does Stewart the interesting thing is you mention a bullet train going from San Francisco to Los Angeles.
It's not even close to being there because of all of the environmentalists that said well we'll wait not in our backyard know that bullet train.
Is going to go between Fresno and Bakersfield.
Which you know is not necessarily the gardens by the state I'd love the folks in Fresno and Bakersfield.
But did to -- due to start your bullet train project there.
Is I think high speed fail not high speed rail what was that about the huge water tunnels and -- -- miles long I didn't get the dollar cost I'm sure -- tens of billions what's that all about.
Relatively good we've had issues about getting water from the Sierras in northern California to San Francisco.
There is number of reservoirs of they're trying to preserve so.
His -- is to build these underground water delta tunnels that go from northern California around the Tahoe region all the way down to the Bay Area but again as you mentioned Stewart.
They -- -- talking about it if that a minimum.
Tens of billions of dollars in construction cost and nobody knows where the revenues coming for a time -- number us from Marx founder of his usual thank you very much indeed mark we'll see you again very soon you'd best thank you so thanks to review some of the Diane.
