| Submit your comments on this article | |
| Economy | |
| California Begging | |
| 2009-12-26 | |
| States: The once-great state of California has been reduced to begging from the federal government. But no matter how much help the feds give, the state's fiscal ills won't end until its lawmakers stop spending money. To say California is a mess is an understatement. In the current fiscal year, the state is expected to post a deficit of $21 billion as the budget continues to spiral out of control. Even after last year's epic budget battle, when Californians were hit with $12.5 billion in new taxes and $6 billion more in borrowing, the state still isn't close to bringing revenues and expenditures into balance. So Gov. Arnold Schwarzenegger has an idea: He wants President Obama to give him $8 billion -- or else, he says, he'll kill or slash most of the state's welfare programs, cut pay for 200,000 state workers and end two tax breaks for big corporations.
The White House should do California a favor and say no. The only thing that will help at this point is for the state's citizens to vote the Legislature out of office -- or for the state to be forced into bankruptcy. The Legislature has been under almost exclusive Democratic control for decades. Time for change. Lawmakers in Sacramento are held in almost universal contempt by Californians, yet most are safe inside their carefully gerrymandered districts. They're the country's highest-paid state legislators, pulling down nearly $100,000, with $30,000 in tax-free money for their "expenses" and a state-provided car for their use. Yet look at the state's imploding economy and shrinking population, and it's clear they're guilty of negligence at best and malfeasance at worst. They've handed much of the control of the economy and education to the public employee unions that have systematically looted the public fisc. Businesses and high-income entrepreneurs are leaving the state in droves, fed up with the anti-business zealots who control Sacramento. By most objective measures, the economy is among the worst in the nation. Unemployment of over 12% is well above the national average of 10% -- no surprise, considering the nonpartisan Tax Foundation recently ranked California 48th among the states on business-tax competitiveness. | |
| Posted by:Fred |
| #18 and not one word of the six million to illegal aliens. |
| Posted by: HammerHead 2009-12-26 18:22 |
| #17 As Bloody Mary sang, You gotta have a dream, if you don't have a dream,How you gonna have a dream come true? |
| Posted by: Nimble Spemble 2009-12-26 17:29 |
| #16 Love that train, tipper. We're kinda behind in that area, aren't we? |
| Posted by: Abu Uluque 2009-12-26 17:26 |
| #15 Many state employees, especially in academia, have already taken what amounts to about a 10% pay cut in the form of furlough days. They have to take two or three days off per month without pay. Well, some of them might actually enjoy the time off. And if a college professor isn't in the classroom for a few days a month, that's a few days a month when he won't be doing any harm to the students. So it's not all bad news. And besides, I rather enjoy the lighter traffic on the freeways. The part I don't like is when I have to pay my taxes. |
| Posted by: Abu Uluque 2009-12-26 17:24 |
| #14 Businesses and people with retirement income are fleeing the state in droves. The latest budget disaster is cause in large part because of plunging tax revenues below even relatively normal times. And the greatest joke of all, massive income and job losses in the breadbasket of America, the central valley. Unemployment is at 30-40% in places, and 25% of the smaller farms have closed...permanently. Why? not the recession/depression....water, and not just the drought, but the diversion of what little there is after 3 yrs of drought to the delta to protect the delta smelt, a 1 inch long fish. In the food banks and charity lines in the central valley, they are giving away food to illegal farm worker that was IMPORTED from China. Can you get government policy more f*cked up that this? Now you see why we are bailing and as fast as we can get the house sold moving on..... |
| Posted by: NoMoreBS 2009-12-26 14:23 |
| #13 And if Texas then exercised its option, the nation might be safe. For those of you who may not be aware of Nimble's reference, under the terms by which Texas joined the US in 1845 there was a proviso under which Texas could at some later date split itself into four new states. However, that clause may (stress the may)be invalid for two reasons. First, although Texas may make the request, the US Constitution says that new states may be created out of existing states ONLY if the state in question and Congress approve it. And sadly, I cannot possibly see any Congress approving any arrangement that would permanently alter the balance of power so drastically. Second, when Texas rejoined the Union after the Civil War, it did so under the traditional method as prescribed by the Constitution - which probably invalidated the original annexation agreement. /Neat historical stuff Mike |
| Posted by: Mike Kozlowski 2009-12-26 14:18 |
| #12 $10B of junk bonds to back a bullet train from LA to SF. They are now saying that they need $60B and that the ticket prices will have to be subsidized to compete with South West - This is what the Chinese have just got for $15B. The fastest train in the world. |
| Posted by: tipper 2009-12-26 14:00 |
| #11 During the 2008 election there were about 10 really expensive initiatives on the ballot even though anyone who had successfully completed pre-algebra could see that state finances were headed down the toilet. One that passed mandated that the state issue $10B of junk bonds to back a bullet train from LA to SF. They are now saying that they need $60B and that the ticket prices will have to be subsidized to compete with South West - there is no talk of pulling the plug. |
| Posted by: Super Hose 2009-12-26 12:07 |
| #10 Any progress on the San Andreas Continental Drift project? |
| Posted by: ed 2009-12-26 11:21 |
| #9 Who will get to file banruptcy first? The US or California. Arnold should encourage all California medicare recipients to move to Nebraska (one-way bus ticket vouchers should do the trick). |
| Posted by: airandee 2009-12-26 10:18 |
| #8 Instead of 2 radicals you'd have 3 or 4 radicals and 6 or 7 conservatives. Much improves the odds. And if Texas then exercised its option, the nation might be safe. |
| Posted by: Nimble Spemble 2009-12-26 10:09 |
| #7 Problem is, then instead of 2 Senators they will have 10. |
| Posted by: CrazyFool 2009-12-26 10:00 |
| #6 Something along the lines of Barry's 57 state solution I take it? |
| Posted by: Besoeker 2009-12-26 09:00 |
| #5 Condition of cash should be the dismemberment of California into five states, Northern Caliphornia, San Franistan, Central Valley, Sierra and SoCal. Inland Empire gets to choose whether it wants to be part of SoCal or Sierra. |
| Posted by: Nimble Spemble 2009-12-26 08:56 |
| #4 Sure Arnold, but put them in receivership, return to territorial status, lose the vote of Senators and Representatives in Congress [but get to keep the federal income tax - see the residents of the District of Columbia about the one], and have a federally appointed territorial governor till the state draws up a new Constitution that includes provisions for living within their own means requiring both statewide popular vote and Congressional approval to full return to State status. See if they'll swallow that one. |
| Posted by: P2k on vacation 2009-12-26 08:37 |
| #3 As an aside, there is a downright funny conspiracy theory making the rounds right now, that Canadian military equipment likely going to Afghanistan from the Port of Seattle, is instead going to California in case there is a massive social collapse there. Yeah, I know, more holes than Swiss cheese, but still. |
| Posted by: Anonymoose 2009-12-26 08:17 |
| #2 CA has been relying on the pre-2009 Bernie Madoff financial model. When the top 3% pay half the CA income tax, any hiccup will cause a similar crisis. |
| Posted by: ed 2009-12-26 06:37 |
| #1 Note there was no mention of cutting programs other than welfare? State funded Medical research could be one that could go? |
| Posted by: tipover 2009-12-26 02:57 |