The goals are the right ones, but it’s crucial that the state not make promises it can’t keep over the long run. Newsom noted that the vast majority of the spending he’s proposed from the surplus would be for one-time needs, such as upgraded day-care centers and classrooms, rather than ongoing obligations, such as new services. He also has sought novel ways to fund some of his proposals; for example, the larger earned income tax credit would be financed by conforming state tax law to the changes Congress made in federal taxes, which would boost state revenue. Of course, that’s just a way to shift money from high-income taxpayers to low-income ones.
Source: latimes.com – Los Angeles Times