White House says no to California budget help

WASHINGTON (Reuters) – The White House on Tuesday dashed hopes that the federal government would help California overcome a mammoth budget crisis that has brought the state dangerously close to an economic meltdown, saying the state will have to solve the problem on its own.

"It's obviously not an easy time for the state of California," White House spokesman Robert Gibbs told a briefing when asked if the administration would provide emergency financing for the state.

** Snip **

It will run out of cash within weeks if it does not balance its books, according to State Controller John Chiang, who estimated last week California was "less than 50 days away from a meltdown of state government."

news.yahoo.com...

Okay, so let me get this strait...

The U.S. Federal Government has bailed out the largest banks that caused this financial situtation. They bailed out AIG who in turn sent BILLIONS of U.S. tax dollars to FOREIGN banks. We gave Chrysler billions of dollars so that the UAW and Fiat could take it over without actually putting up any money, and last but not least, we - the U.S. tax payers - now own GM.

But the federal government cannot do anything to prevent the collapse of one of the fifty states?

Some of the things that U.S. citizens in California will loss:

* $302.3 million from the elimination of the Healthy Families program, denying coverage to over one million children.

* $1 billion in unspecified cuts to Medi-Cal, that could deny coverage to nearly 1 million California children, parents, seniors and people with disabilities.

* $34.8 million in additional Medi-Cal cuts to eliminate certain "state-only" programs that don't get federal funds, thus denying coverage to specific populations for breast and cervical cancer treatment, postpartum care, dialysis, and non-digestive nutrition.

* $55.5 million in new cuts to the AIDS Drug Assistance Program (ADAP) to impose additional costs and restrict drug coverage for tens of thousands of Californians with AIDS.
Source

There is more:

The release of thousands of criminals from prison, cuts to education, elimination of finacial aid to college students, closing 200 out of 279 state parks, even public defenders for poor people accused of crime are being cut.

I think I get it. Unions are Obama's freinds, Bankers are Obama's freinds, even the entire Muslim world are Obama's freinds, but Californians are the ugly redheaded step children of the United States.

That's your government people.

reply to post by finemanm



It is not just Cali, it is all of America he does not cater to.
the government does not listen to what we want anymore. They have not in a long time.

reply to post by amatrine


That's because the things we collectively want are retarded. Letting a mob rule itself is disastrous.

Americans are hopelessly lost in the complexities of the system that, at some point, they convinced themselves "can function without me. Without my oversight. Without my voice. Without ever educating myself before speaking an opinion," and what we're left with is what we have.

It's our own damn collective faults.

Americans are the suckers of the world.

What is that old saying?

"When the people find they can vote themselves money, that will herald the end of the republic." -- Benjamin Franklin

I believe that includes states and corporations.

reply to post by finemanm


Maybe it is time for the Republic of CA to become it's own country and sever ties with the fed govt. Maybe it is time for all 50 states to declare their independence from this so called union of states. I don't see it happening, at least not just yet. There are still millions of sheeple Americans out there that are under the impression that the fed govt actually cares about them and their issues, waah, poor simple minded gullible sheeple.

"elimination of financial aid to college students"

Yikes! Kind of glad I left my private school when I did. No way I could afford it if I didn't get help from cal-grants. Community college here I come!

reply to post by jitombe


That is a very interesting proposition. The federal government has obviously turned its back on California, so maybe California should return the favor. I wonder what the ramifications of that would be? If California decided to start from scratch, with a government that was actually FOR THE PEOPLE... I would imagine that people would certainly try to migrate to the state.

I would imagine that it would eventually devolve into an Eastern Bloc type of situation where the US would end up going to war against California.

Interesting concept and I could easily see it happening. I think this type of action is what is going to be the trigger for the collapse of the nation.

reply to post by jitombe


Or we could just elect Ron Paul

Well, really it would take more than that. We'd have to elect Independent candidates to congress as well. Moreover, we'd have to actually pay attention to the news, and when they talk their economic gibbery, we'll have to actually look up what the words mean.

Hrm, what a utopian dream it is to have an informed, critical thinking public.

I can dream, can't I?!?!

I'm so tired of this crap. People need to stop being such damned lemming pansies and demand accountability, demand justice or TAKE IT!

reply to post by finemanm


Sorry I had to laugh, it seems you thought the Government was going to care for the people...

I am however glad to see the Federal Government actually not bailing out California. Hopefully this will wake some people up over there...

Nothing will shrink the size over the tremendous state government over there like the lack of money. I hate to see people suffer, but just like the companies that should have been bailed out, it is time to cut back spending and restructure to become more efficient.

[edit on 17-6-2009 by Anonymous Avatar]

Yes seems this is just a start to putting the US up for sale,now watch how they will tell them to look for foreign investors to help them out,if I were California I would collect all federal funds and keep them for the state,look how all that money that the US won't have,just a matter of time till it hits all states,so far only state not in a recession is Texas