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As Goes California, So Goes America

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posted on Feb, 18 2009 @ 08:43 AM
Whats the Latest From California?

It seems news events are happening very quickly. Lets use this thread to post any 'new' news event that occurs in California. There have been many threads started that pertained to one topic and new information gets lost in the thread.

Since California is the 8th largest economy in the world, it is very important for those of us who live in other states pay close attention. If the Federal Government allows California to fail, what do you think they will do in your state?.

Please post information about your town or city. What stores are closing in your area, who is laying off, taxes....ect. How is your local media
covering the information.

Let me explain by using California as an example, because, as the 8th largest economy in the world, as goes California, so goes America.

Los Angeles nears water rationing

LOS ANGELES (Reuters) - With a recent flurry of winter storms doing little to dampen California's latest drought, the nation's biggest public utility voted on Tuesday to impose water rationing in Los Angeles for the first time in nearly two decades.

Under the plan adopted in principle by the governing board of the L.A. Department of Water and Power, homes and businesses would pay a penalty rate -- nearly double normal prices -- for any water they use in excess of a reduced monthly allowance.

GodSpeed To All..........

posted on Feb, 18 2009 @ 08:52 AM
First off, I'm not sure I agree that one state mismanaging their business is going to drag the other 49 down.

Second, what does happen if they "fail?" California in particular? Is revenue (tax and otherwise) n this "8th largest industry" going to freeze? No more oranges or movies? Or is the problem that the "laws" in the past few years have given the truly rich and the corporate "individuals" so much of a tax "break" that the little people can no longer carry the burden with their pitiful taxes? What is the REAL issue here (and countrywide for that matter).

Anyway, I digress. At some point they need to step up and fix themselves and quit whining to daddy for help. It's time for some belt-tightening and tough love all around...let them "fail"...California, the car companies, the banks. At some point it's gotta be time to pay the piper and quit passing if forward and saddling the entire country and our future generations with the problem.

posted on Feb, 18 2009 @ 08:53 AM
California budget negotiations hit a new snag

Reporting from Sacramento -- As California's government continued its grinding downshift toward insolvency, efforts to close the state's nearly $42-billion budget gap hit a new snag late Tuesday as Republicans in the state Senate ousted their leader.

Around 11 p.m., a group of GOP senators, unhappy with the higher taxes that Senate leader Dave Cogdill of Modesto agreed to as part of a deal with the governor and Democrats, voted to replace him in a private caucus meeting in Cogdill's office.

posted on Feb, 18 2009 @ 09:08 AM
reply to post by Cloudsinthesky

As the massive exodus happens do to the collapse of California's economy you will see other states setting up check points, yes road blocks to turn Californians away as to not put a further drain on that particular state's hand outs available thru social programs for their existing residents.

posted on Feb, 18 2009 @ 09:16 AM
Reply To Lucidity:

California Municipal Bond Ratings Cut to Lowest Amongst States

So I guess those states (many on the east coast) who have invested into California will not be affected when California fails?

California's financial paralysis and its deteriorating fiscal condition is not something that is widely reported. Still, investors hold tens of biillions of its bonds and the state has the fifth largest economy in the world. We should all be paying attention.

So you are saying that California will not affect the rest of the states not to mention if Mexico fails who is the 12th largest economy?

I think there is little more than the oranges to be worried about? But we all have our opinions!

Well I should say for now............

[edit on 18-2-2009 by Cloudsinthesky]

posted on Feb, 18 2009 @ 09:19 AM
Californias biggest exports seem to be: self-righteous, nanny-state politicians; self-righteous, nanny-state celebrities and wine in a box.

I think I can manage without those things. Somehow, I'll survive.

posted on Feb, 18 2009 @ 09:36 AM
Copy of State of California surplus notice

The State Worker has received a copy of the "surplus notice" that individual departments are sending out to their least senior employees. Each department will put the notice on its own the letterhead.

Copy of State of California surplus notice
ShareThisPublished: Tuesday, Feb. 17, 2009
State of California

Surplus Notice


In the face of a $42 billion budget shortfall, and still no budget, measures are needed to preserve the State's cash. Even when a budget is passed, and even with the mandatory furlough, elimination of programs, offices or other reductions in workforce, and layoffs will be required.

As you know, civil service rules require that the least senior employees in departments receive surplus notices when there is a reduction. You have been identified as one of the least senior in your department which means that you may face layoff, demotion in lieu of layoff, or transfer.

As has been reported, SEIU 1000 has recently signed a tentative agreement with the State. If you are an employee in a SEIU bargaining unit, you will have special placement provisions to a job within 10% of your current salary and within 50 miles of your home in order to avoid layoffs. While this agreement requires final ratification by the SEIU 1000 membership and the Legislature, we will be preparing to implement these position reductions along with the placement provisioning for SEIU 1000, in expectation that this tentative agreement will be ratified.

You have been designated as surplus and have priority hiring preference for open positions for which you qualify.

Now that you have been informed of your surplus status, there are specific things you need to do and keep in mind:

1. Read and keep this letter, attach a copy of this letter to your job application form (Std. 678) and take a copy to all job interviews. This will verify your surplus status to the hiring department.

2. Review state vacancies on the State Personnel Board's (SPB) Vacant Position Database (VPOS) and apply for those comparable positions for which you may qualify.

3. Always respond quickly to hiring departments inquiries. If you do not, your surplus status may be impacted.

4. Appear for all scheduled interviews; your eligibility for surplus status will be impacted if you do not.

5. Keep your contact information current.

6. If you are offered a job for which you qualify, accept it. Otherwise your surplus status and hiring preference for a job will be in jeopardy.

Each department is now preparing a staffing reduction plan. If you are impacted by this plan, in addition to this surplus notice, your name will be placed on the State Restrictions of Appointments (SROA) certification list for your class and location. Hiring departments use this certification list to contact eligible employees for interviews when filling vacant positions.

For more information on the State's surplus/SROA lists and layoffs, go to

[edit on 18-2-2009 by Cloudsinthesky]

[edit on 18-2-2009 by Cloudsinthesky]

posted on Feb, 18 2009 @ 01:19 PM
reply to post by Cloudsinthesky

My point remains. Let the chips fall where they may. Let the consequences HAPPEN already. All we're doing with all this bailing out is putting the monkey on someone else's back.

posted on Feb, 18 2009 @ 01:22 PM
I had just read yesterday that 36 of the 50 states
were in the throes of a budget crisis, so I think it's safe
to say that we're pretty much all in the same boat,
or will be soon.

posted on Feb, 18 2009 @ 01:32 PM
reply to post by ~Lucidity

I don't disagree with you as far as letting the chips fall............I am all about capitalism and the free market.

posted on Feb, 18 2009 @ 01:39 PM
reply to post by ~Lucidity

Well, it's not just California. There are 46 other states with budget shortfalls. Kansas is also suspending tax returns and there are East Coast states like Vermont who are also calling for state wide furloughs. As business in these states spirals down tax revenue is going with it. When California goes it will signal the mark of other states to follow. The Federal Government will then step in and try to bailout the states. How long do you think this will go on before the Federal Government defaults?

California does have a first domino quality to it regardless of industry.

posted on Feb, 18 2009 @ 01:57 PM

Originally posted by amari
reply to post by Cloudsinthesky

As the massive exodus happens do to the collapse of California's economy you will see other states setting up check points, yes road blocks to turn Californians away as to not put a further drain on that particular state's hand outs available thru social programs for their existing residents.

That is illegal per the US Constitution, a treaty signed by all states as they joined the Union, they cannot impede civilian migration cross borders. If Californians flee en mass, we must take them.. ironically, it's how California was founded .. just opposite direction.

posted on Feb, 18 2009 @ 02:03 PM
I certainly hope that California doesn't go down soon as I am in Bakersfield right now on business.

Most of the people I've had an opportunity to interact with here tend to be quite optimistic and living their lives quite normally. Of course they are employed for the time being.

People are working here, shopping, eating out and if you were here would not see any real signs of a bad economy.... I have been in other parts of California that are not doing nearly as well, nor are the people optimistic.

California may not survive the economic collapse but Californians will!

[edit on 18-2-2009 by Walkswithfish]

posted on Feb, 18 2009 @ 02:18 PM
Yeah well as far as the rest of us states are concerned California is like our dysfunctional inbred cousin.

It is in no way a barometer of the rest of the country.

posted on Feb, 18 2009 @ 02:22 PM

Originally posted by projectvxn
reply to post by ~Lucidity

Well, it's not just California.

I'm not saying that it is. And my point remains. The madness has to stop somewhere. Figure out WHY this is happening and act on that. Don't turn around with your hand out looking for help from someone else.

I said long ago that the state and federal tax revenue bases from all the manufacturing and jobs going offshore and all the loopholes for the corps and rich people was gonna bite us in the ass one day. That day's here.

posted on Feb, 18 2009 @ 02:26 PM
California's problems stem from corrupt politicians on the Union payroll vs the People of the Republic of California.

The democratically controlled legislature refuses to roll back the government to sustainable levels. The unions will not allow it.


California is already one of the highest taxed states in the country.

This 'budget' includes an increase of your California State Income Tax
A new tax on your income, surcharging your federal tax of up to 5%
Doubling of the VLF (car tax) Fee
.12cents per mile increase on the existing gas tax
Raising of the sales tax.

All of it goes for the DMV workers and the like to have a 95% pension and pay raises -- not cuts.

Heres a link for the Calculator of additional taxes that Californians will have to pay if they pass this budget. Enter in your info just to see how much additional you would have to pay.

I'm outraged at the amount of more of MY money they want to take because they can't spend within their means.

The cuts in this budget? Those were proposed spending INCREASES they cut -- not actual cuts.

Now what do we get in exchange? A Cap on spending -- that the voters HAVE to vote on which includes an extension of the proposed taxes for an additional 2 years. So to get a cap, we get more tax. Who is going to vote for that?

This budget will KILL whats left of California. People here are waking up and they are downright ANGRY about it. If you think Californians are fleeing now, just wait until whats left of the middle class here will do when they see this.

People here CANNOT AFFORD this.

We recalled Davis for tripling our car tax, imagine what is going to happen if they pass this budget.

The two holidays state workers just gave up? BAHAHAHAHAHA. They got them replaced by two floating holidays.

At least the republicans finally realized if they vote for this and do not hold members of their own party accountable -- then ALL of them are going to be blamed for it. If they support this, they are committing political suicide. This is why they replaced the Republican Leader pushing for the final vote.

Oh and the notice of surplus? Don't make me laugh.

Arnold just signed a new union contract for 75,000 workers exempting them from furloughs or layoffs.

They are shooting for 10,000, even though it's 20,000 stated. They may get a few thousand. Those few thousand are actually open spots or those leaving through attrition -- end result being no decreases. It's fluff.

Enough is enough. One of the republicans wavering on this was quoted something like 'they are going to lynch me'. Damn straight.

Cut the crap, cut the spending.

posted on Feb, 18 2009 @ 02:35 PM
Oh yes. Let's blame the unions. Bad unions! You know, this talking point has been beaten to death. but I have to hand it to them for dusting it off and trotting it out everytime Cali gets in a pickle. Thing is, this goes way, way deeper.

posted on Feb, 18 2009 @ 02:41 PM
i guess it could be much worse....
after all the Californians would be Down-&-Out in the San Joaquin valley,
(the nation's salad bowl)... getting out of the city would be good for the adventureous on what remains of their Calpers retirement payment

posted on Feb, 18 2009 @ 03:11 PM

Hah! You and I both know they're not going to look at something as silly as facts...'swrong with you!? Suggesting such a thing.

posted on Feb, 18 2009 @ 03:20 PM

Originally posted by ~Lucidity
Oh yes. Let's blame the unions. Bad unions! You know, this talking point has been beaten to death. but I have to hand it to them for dusting it off and trotting it out everytime Cali gets in a pickle. Thing is, this goes way, way deeper.

If not the unions and the illegal immigrants, what then is the problem exactly for the budget problems?

It can't be that California needs more taxing because we are already taxed to near death.

Sorry but this defense of the state worker unions doesn't stand up, especially with all the deals that these unions get. The pension packages are way better than anything in the private sector, and massive layoffs haven't happened since the 1970's. The unions have massive political influence and many of the legislators have been bought and paid for by the unions.

The unions DO NOT WANT TO GIVE UP A DAMN THING event though state revenue has dropped due to the economy. They just want the state to increase taxes even more.

As a citizen of California, it is enraging.

I HOPE the state goes down in flames.

I HOPE there is financial catastrophe.

Even if the budget passes, there will either be a flood of businesses and people leaving the state and depriving even more revenue or there will be a tax revolt.

There is open talk about tax revolts already. The people of California DO NOT WANT to fund the unions nor do they want to fund our bloated budget.

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