Correct me if I'm wrong, but wasnt California in deep $hit even before Arnie took office? Now the chickins are coming to roost and it makes me wonder what other states are next.

All we need are more tax cuts especially for the corporations!! Tax cuts and this problem will disappear! You guys worry too much!

Florida is next. I heard they were to be in a 31 billions deficit by 2013...

So next, states bailouts.

[edit on 1-12-2008 by Vitchilo]

I can tell you now Nevada is in the same toilet. We will eventually have to declare a financial emergency of our own in the next few weeks to a months. Nevada is in really bad shape right now and have had to make major cuts in educations and social services. Eventually they will start laying people off, or telling them not to come to work on certain days. Then a state of emergency will be declared.

It was just a matter of time,with all the foreclosures and buisnesses failing,I could see the revenue fly out the window,I'm thinking they will try to repel Prop 13,and taxes will be in 20% range come next year,IMO

Originally posted by projectvxn
I can tell you now Nevada is in the same toilet. We will eventually have to declare a financial emergency of our own in the next few weeks to a months. Nevada is in really bad shape right now and have had to make major cuts in educations and social services. Eventually they will start laying people off, or telling them not to come to work on certain days. Then a state of emergency will be declared.

Not to mention Nevada's upcoming water crisis. And it's not the only state in danger of running out of water in the next 20 years.

The California government spends so much on their employees. State workers get far more in comparison to their private sector counterparts and get far better benefits.

Then the California government spends a ton of money on welfare for illegal immigrants.

Then there is the broken education system. California spends so a ton of money on students (including illegals) only to see many of them drop out in high school.

Then there is the ballot measures. California voters love voting for new bond measures for whatever new project that can be thought of (voting money for themselves) without thinking that the state has to borrow money or raise taxes.

The the California budget was set around good times like the dot-com bubble or the housing bubble. Now the economy is tanking, the state dares not cut back on their unionized employees nor do they dare cut back on their precious education system nor do they dare cut back on their welfare programs that the Mexican government should be paying for.

Then there is.......

Yea I can keep going with this.

It is no surprise how the Cali government is in the hole. What pisses me off though is that we pay such high taxes and the government STILL doesn't have enough.

You know, IF some major regulations and requirements were enacted around the eligibillity and amount of federal bailout funds, I wouldn't be totally opposed to the idea of the federal government lending some assistance to troubled states. Afterall, in many ways it is the fault of the federal government that some of these states are in such a crunch. In fact, if you really get right down to it, the federal government's primary responsibillity is to protect their member states from harm, including financial ruin.

Some of those aforementioned restrictions and regulations I'd want to see enacted first include:

1. Abolishment of "safe haven" policies in regards to enforcement of federal laws. If a state allows some of its counties or cities to harbor and protect illegal aliens, drug dealers, or drunk drivers then they get nothing.

2. Elimination of non vital spending. IMHO, it is an abomination to see tax payer dollars wasted on things like art projects, cultural endeavors, sports stadiums, and the like during a period in which the crappy economy is forcing budget cuts to important sectors like education, infrastructure, and health care. It's called prioritization. It is irresponsible and childish for a family to not be able to afford new shoes for their barefoot kid because they spent the shoe budget on tickets to a movie or a PPV... why then does it seem to be perfectly fine for governments to essentially do the same thing? In times of great financial distress you cut the fat from infrastructure improvements, funding only what is needed to safely construct a project, and leaving the frou-frou crap for a sunnier day.

3. Development of a rainy day fund. Every state should be required by federal law to maintain at least a 90 day working surplus which would cover all required expenditures for that period and which can only be tapped into following either arbitration of a specially designated panel of federal COngress or through a supermajority vote from the state in question's house of representatives. This fund would have some leeway for use of any uinterest it generates, but it would also have to be added to to maintain the full 90 day supply as normal expenditures rise during fruitfull times.

4. Development of a biannually updated sustainabillity plan. This plan should include a prioritization of all state level expenditures. This goes along with #5

5. Complete transparency of all expenditures AND prioritizations. The tax payer deserves the right to know where his dollars are going and not only what they're being used for, but also what they're not being used for. For example, if $10 Mil is used towards beautifying the grounds around the state capital building, yet the state's school districts fell short by $10 Mil, the tax payer should know this. This also goes along with #6

6. Accessabillity by the public for airing of grievances and demands for explanations. There should be an open and accessible outlet for the public to demand their state account and explain every cent which is used. Our lawmakers should have to look the tax payer in the eye and defend using money to fund projects of lesser tangible importance while taking funding away from more crucial programs.

If the states were required to ratify and follow these regulations, I'd have no problem with the federal government bailing them out. I certainly have been opposed to the commercial bailouts, but seeing as how this would be more akin to a parent helping their own child, I don't t have the same outrage over the idea as I had to the other bailouts.

I'm sorry. Double post caused by overly excited, fat, twitchy fingers.

[edit on 2-12-2008 by burdman30ott6]

Originally posted by Mr Knowledge

Schwarzenegger declares emergency

SACRAMENTO, Calif. (AP) -- Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called lawmakers into a special session to address California's $11.2 billion deficit.

Why should the lawmakers address it... It's that HIS job???

So the worlds 5th largest economy is going Bankrupt?

Its the equivalent to the UK going into Fiscal Emergency.....

Been waiting very concerned for us all.

very very worried.....

Elf.

Originally posted by MischeviousElf
So the worlds 5th largest economy is going Bankrupt?

Its the equivalent to the UK going into Fiscal Emergency.....

Been waiting very concerned for us all.

very very worried.....

Elf.

I second the weirdness of California's move here... I don't think so. Something else is afoot, and the smell of it is "bailout" dollars for preparation for something else. Yes, the people of California are about to be raped some more - because California, like was mentioned earlier, the 5th largest economy IN THE WORLD, has oil too. They have a lot more going for them than oil too. They have an immense seafood harvest. They have two immense farming regions both in the San Jauoquin and Imperial Valleys. They have tourism, the entertainment industry, a large cyber industrial complex, not to mention a wealth of federal spending supporting their economy with satellite, aerospace, and other military industrial complexes such as Teledyne, Rocketdyne, TRW, Hughes, LockHeed Martin, and Boeing.

And let's not forget the vast wealth California possesses in gold - yes, there is still a lot of gold in California...

Plus... taking the economic gambit to it's extreme we have to remember the vast black market bounty California harvests annually in Marijuana - which the government there has conveniently benefited from.

Nope... I'm not buying it Arnie. I would have expected Nevada to proclaim an economic emergency before California, and while we have not, but are expected to soon, it goes to show that something is just not adding up. Sure, this year California saw one of it's worst years during their fire season in quite awhile, but that too shouldn't have affected their economy as bad as Nevada's.

You do the math, like I just did, and lets see if this isn't an inside operation about to go poof in the peoples face once again...