The reason for the "everything is fine" mantra is quite simple, to prevent things from spiraling out of control. If the Governator got on TV and told the entire state that they were mere months from a total collapse of state functioning I'm pretty sure there would be rioting and looting in the streets now rather than in October when the cash runs out and the other shoe drops. So glad I don't live in that state or I would be looking at moving with the quickness and finding a more stable location to live.

Umm...don't they do this about once a quarter? Just saying....

Californian reporting! The reason this is happening because of the welfare state California has become. Numerous people working both blue and white collar jobs are being laid off and now are filling for various forums of welfare. California has, monthly checks for various reasons, section 8 which is cheap housing on the market, food stamps of course and others forums of welfare. Now it's good to help people out but everyone getting welfare is not going to bring the money in the state.

We never fixed the first budget crisis. Like the Federal Government patched over the symptoms of the budget crisis, California only bought time. Schwarzenegger warned of this for years, but Democrat politicians refuse to cut and Republicans refuse to tax. California spends more and taxes more than most other states already. We have tons of wasteful spending, a huge amount of fraud, and high taxes that drive out businesses and high earners. The stimulus programs have built systems that California can't afford to support. Bay area bridge tolls just doubled for peak times, and the tolls were originally just there to pay off construction.

California is also the number one destination for immigration from many countries, both legal and illegal. For legal immigrants, what I see in our neighborhoods is not much time is spent paying into the system, but benefits are collected. Put $10 into the system and pull $1,000 out. For the illegal immigrants, many work on a cash basis and don't put money in, and full benefits are also collected. The population load on schools and infrastructure is huge. In California the percentage of illegal immigrants is not single digits, it's double digits. Entire neighborhoods are non-english speaking.

They have no tax base. Simple as that. And this is how the entire country is going. And someone out there thinks the brainiacs in power didn't see this coming?

Califournia is the bow of the Titanic.
Lighten the ship!
Throw the women and children overboard first...
and the band played on...
Save the bankers!

This just so funny is actually sad.

We have a government that just passed another stimulus early this year to boost the economy under the name of protecting jobs like teachers and police in various states.

But the bill also was to benefit California union workers so they could not lose their jobs, jobs that pays as high as 100 to 200 thousand dollars a year.

Well perhaps Arnold can cut the salaries of those benefiting from that particular bill and pay some of the States debt.

[edit on 29-7-2010 by marg6043]

Maybe if they legalized cannabis and started taxing it (like the majority of its citizens want) then they could start getting out of the massive debt.

"Employees in agencies involving public safety, including the California Highway Patrol and the Department of Fire and Forestry Protection, and in revenue generation, such as the Franchise Tax Board, are exempt."

Law enforcement and Safety service exemption is fine, but obviously the taxman NEVER takes a break so is also exempt.

Why is he taking money from the hard working people? Why not limit the amount of freebies given to those not working?!?!?! Give people some incentive to go get a job and start contributing. Do something about the illegals so they start contributing taxes to keep this place afloat since they love being here so much.

Just goes to show you that there is no such thing as free money. Something I hear all the time anymore. People choosing to stay unemployed because they get free money so decide to stay home for a year instead of trying to get a job. Welfare, food stamps, section 8, it isnt free money. It sucks, if my husband decided to get a job making half the money we could get the same house for 2/3 less than what we pay for it now via section 8. BUT since everyone is taking advantage of this taxes are going up up up. Now he doesnt even know if he will be able to keep his business past January because of possible tax hikes. We are not in California, we are in Missouri, but this problem is everywhere. Too many people living off a system that just keeps giving. When there is not enough left to give everything will come falling down. Soemthing has to give.

While Im ranting, it is frustrating reading about these financial problems while our govt cannot account for 97% of the billions of our $$$ that was supposed to be used for the Iraqi reconstruction that most of us disagreed with.

Originally posted by Dodger13
Maybe if they legalized cannabis and started taxing it (like the majority of its citizens want) then they could start getting out of the massive debt.

Considering how many problems have come up since Mexico decriminalized drugs, I no longer agree with legalizing anything that would make us more controllable. As harmless as many believe cannabis is, there is one serious threat from it. It makes you not give a darn about things you SHOULD give a darn about. We need a country filled with people who have a good head on their shoulders. We dont need more stoners at this point. Thats MHO.

I agree that we need more serious people with good heads on their shoulders, but I question the judgement of anyone who says that people need to buck up and get jobs in western states like California. Here's some reality: There are no jobs to get. Most of the help wanted signs you see are camouflage; if you go inside and ask, you will find that they are accepting applications for some future date that my or may not occur. There are no openings now.

This countries economy is circling the drain. Years of so called "conservative" economic quackery has decimated the middle class. Our Federal government is sleeping with Wall Street, and the transfer of wealth, from the bottom to the top, is near total.

We definitely need serious people with "good heads", but parroting the "just get a job" party line is goofy. Our manufacturing base has been destroyed. Our jobs have been shipped overseas. We used to innovate and lead the world in the creation of products and services the rest of humanity aspired to enjoy, and now we only lead in body fat and fast food.

You can't run an economy on that.

You're right. Things have to change. There were so many jobs out there that had to do with nothing that is actually needed. It was only a matter of time before they all dissappeared. Moving jobs overseas KILLED us. I am sure eventually it will be corrected and people will start moving them back here especially if everyone starts demanding it and buys made in the USA over anything else.

I think freebies need to go first. When you need to cut spending, it first comes out of the give away pile. Sure it pisses people off. People were all kinds of pissed when I stopped the handouts too granted they were not as fabulous as the ones states give. Too darn bad.

Cutting $$ from the hard workers just puts more people in the free $$ line, how does that change the situation any? Plus there is that much less going into taxes. WOW actually now that I look at it a bit more, the Govenator made a move that seriously sped up the inevitable. What is even more amazing is that this is the only option he had considering he got too much grief giving out IOU's Amazing.

Hmmm. I work for the Superior Court under the State of California and they just ended our year-long monthly furlough days, supposedly indefinitely. Makes me wonder.