OMG! California controller to suspend tax refunds, welfare checks!

reply to post by David9176

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Well the link I posted was back in October when the first complains by state started, so I wonder how is going to look this year.

AIG Insurance got $70BILLION

Arnold & Maria want only about 1/2 that. So on first impression this is to get a handout from Obama. If that is not the case then this is the first domino to fall and we go medieval. In my state we are short $3 Billion and the Governor has announced deep cuts.

Remember when I said we were in the Mideast for RESOURCES? How much in terms of resources does our military expend daily and now for years and years? Remember all of those Congressional actions to pay the army? Remember the solution? Print more funny money! When your Buck is worth 4¢ it will then take $25.00 to purchase a $1.00 item.

If you want heat you will need to light a fire but you don't own the woods and it takes a while to cure the wood. How will you cook? How can you fish w/ out a license? What on Earth will you eat? The cops have no problem shooting people in California! What will they eat? YOU?

As someone who lives in California, all I can say is....

good.

The state has plenty of money. The problem is that there are many, many state workers getting paid way too much.

Example: A public school teacher can average around 60k a year. Yet a private school teacher makes much less but teaches much better. The public school dropout rate in Los Angeles is an astronomical 1 out of 4 and the test scores equally suck. Yet L.A. has one of the most well funded education systems in the country. There is something seriously wrong here.

The state workers and all their unions don't want a cut back and legally the state is contracted so cut backs cannot happen without union consent. The workers and their unions want more while the California is making less from taxes (even though the population is one of the highest taxed in the country). The unions and their government lapdogs want more tax increases to feed the unions.

Then there is all the other waste. Illegal immigration and large governments are only some of the many problems.

So I hope it all collapses. At least if the state defaults, the union contracts will be worthless. Maybe all the illegals will realize that their social services will no longer be available and decide to leave. Maybe all the worthless teachers and their very highly paid administrators and union bosses will get cut back by default. Maybe all the wasteful regulations and all the state nannies will also be thrown out by default.

I hope California doesn't get a bailout either. Why should people in other states pay for the incompetence of the California government?

California government needed a cut-back a looooong time ago. One way or another, it is gonna happen.

reply to post by secretagent woooman

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Yes here in GA people are having the same problem with the unemployment offices, phones and internet site, but it was in the news the reason why, their systems crashed in more than a few states due to the increadible amount of people filing for unemployment benefits.

They has never been in demand this much.

Unemployment Claims Crash Multiple Websites



globaleconomicanalysis.blogspot.com...

And when have you seen, in your lifetime, such an unprecedented step by a state like California?

You make it sound like this happens every other week, the fact is, it doesn't. When any authority can no longer supply state welfare payment to citizens there is cause to ring alarm bells, and ring them loudly.

The welfare system is one of the last things to be tapped in desperation. This means that they have already used every other option and not found a solution.
Government staff cannot make such statements lightly. Yes, he might be encouraging the government to take action by pushing it, but it's still a risky move and means that the situation really is dire.
This statement alone is enough to incite a mass exodus from the state, and it'll be the wealthy leaving for safer climes.

This should be taken as a serious warning.
When you see him quit his post, and others follow, it's time for California to batten down the hatches for a severe storm of public unrest.

And on Arnie...
Being able to repeat your previous tag lines for blockbuster movies doesn't qualify you to operate a state. How did anyone take him seriously?

One thing that really makes me chuckle right now...
All those Gay folks, you know, the ones with the disposable incomes, more wealth than they know what to do with, they'll jump ship and watch all those who voted to steal their rights sink with the local economy

Now that's Karma!

This was all predicted by several economists over two months ago. And it is just the beginning. Look to New York for the next announcement.

Make sure you all thank Bush on his way out of office.
He deserves a round of applause for creating wars on two fronts, giving his wealthy buddies tax breaks, widening the gap between rich and poor, lax regulation on finance and loans, encouraging the false "American dream" of buy now pay never...

The world usually follows what ever happens in California.

BTW: California is the world's 7th largest economy.

reply to post by marg6043

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I have a sick suspicion based on what the agency rep told me that they are out of money and this is a last-ditch attempt to stagger payments in lieue of denying payments. I know others in the area are starting to think the same thing. Unemployment hasn't increased that much here in just 14 days.

reply to post by Alpha_Magnum

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If you want heat in your home in some California cities and decide to light a fire by using wood as a fuel, you will get a citation.

We, the people of California, put global warming theories ahead of people.

We, the people of California, deserve what is happening right now.

reply to post by secretagent woooman

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I agree with you, I also believe that the problems is the lack of money available to states right now to keep with the demand on the unemployment benefits, interesting that we most remember that this only the people that have benefits can you imagine those hundreds of thousands per state that do not fall within the benefits?.

Incredible.

reply to post by Jinni

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I'm curious. Are you aware that in the United States the States operate independently? California could go belly up and not have any impact on most other States.

For instance we had 3.5% growth up here last year and a stable housing market with normal unemployment numbers for this season. We have no income tax and yet we are rock solid. Perhaps people should rethink their leadership, eh?

Interesting that so many of the residents of States that are failing laughed at our leadership.

California should just stop payments to the Illegals and take care of its citizens, which is as it should be. Mexico should take care of its own for a change. We can't afford them anymore.

reply to post by marg6043

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There are six adults in our household, all out of work since summer at the latest, and only two qualify for any type of assistance. Only one has insurance, five with chronic medical conditions, and most of the health agencies here won't treat indigent patients. I don't qualify anyway because I barely made more than the legal poverty limit last year. It looks like the bad times already are on, God only knows how bad things will be all over come late May for everyone in general. I hear a lot of people who qualify for tax refunds already are filing but what about others who don't file because they can't pay? That's a lot of money that won't go back into the system, that's for sure, and that's not even counting bankruptcies.

reply to post by wutone

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Hi there. I agree with much of what you're saying. There is a lot of waste in that many people being overpaid for what they "do." I just wish that the cost of living wasn't so high. Yeh, people can be greedy and buy unnecessary "stuff" but mortgages, rent, utilities is crazy. I wouldn't care if I was only paid $5 an hour if it didn't cost so much to just live - the basic necessities. Why DID everything become so expensive? Who puts value on things? Who says diamonds or houses or whatever is worth what they say they are? Yes demand is part of it, but for many other items. . .

Relax folks, Arnie is playing power politics.

He knows that the Dems cannot afford to let California go broke. He is just staking out a claim as first in line. So that when the Unka Suga Gravy Train moves on from banks and corporations, and starts throwing bags of money at the states, Cali will be ready to catch them.

Give it a week and I am quite sure that Barack Obama will announce a new bailout plan for the states. How much is California asking for? Simply multiply that number by 10 and that will be the size of the bailout.

Once the Feds are done handing out checks to the states, then the major cities will get in line. We'll be bailing out New York City, LA, Chicago, Miami, San Francisco, and a dozen other cities.

After that, it will be Unions and "Non-Profits".

reply to post by lel1111

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Those are agencies, call "regulators" that their jobs is to do just that and guess what is all under the law occurs manipulation and greed plays a big role.







[edit on 16-1-2009 by marg6043]

These (many) people will somehow react! Thats for sure..

Fasten your seat belts USA!

Ko3

Just to put this into perspective and buffer the fear mongering -

Currently 92.8% of the workers in the United States are still working at their normal jobs earning what they earned before. We are still paying our bills and living the same.

Now if we could just get the Illegals to go the hell home the rest of us could have a job too. Think about it.

Now we return to AAAAAAAAAAAAAAAAAAAAAAAAAH!!! California is bankrupt the whole country is doomed!!! Oh My God!!!!!!!!!!!!!!!!!!!!!!!!

reply to post by Blaine91555

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The problem is, when a state fails financially to this degree, people will migrate to places where the life is better and their chances of employment are better. That puts further strain on neighboring states and their economy. In a national problem of rising unemployment, there are only so many jobs going, and there are already more unemployed than positions available. So what do all the new people coming in do?

I'm assuming a person can leave California and seek work in another state? If they cannot find work there, can they claim government assistance?
If so, the collapse of California will certainly have a dramatic impact on the finances of other states too.

And remember that this is a national financial problem. Just because California is the one to utter the first mention of trouble, doesn't mean every other state is doing just fine.

I think the government will likely issue funds from their never-ending pot of tax money while hoping that everything will be better in six months. It does seem like this announcement is more of a prod at government to help them.

And is it any surprise this isn't national news? They really don't want you to stop buying and start stockpiling, so they're hardly going to give you even more evidence of how serious the situation is.

FEMA camps anyone?

hmmm I just read this and well, I am shaking my head.

Is this really on the agenda? It could be a political stunt to get money for the State by the Federal Gov? Perhaps California wants a bail out?

If not, then it seems to me the economic meltdown has provided Govt, the elite with the opportunity to get rid of/deny welfare recipients... who in their right mind denies welfare to people?

What also is strange... most moderate income earners would rely or need the tax refund. Wealthy people would not starve without it. So this decision is hitting who the hardest? People who are in the low and moderate income bracket?

Is this part of an agenda to 'select' an ideal state?

very weird...



[edit on 16-1-2009 by Thurisaz]