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Controller: State to run out of cash in March without action

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posted on Feb, 1 2012 @ 03:46 PM

California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.

The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.

But Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on. m&xdm_c=default5647&xdm_p=1&f=sacbee&t=capitol_alert_controller_state_to_run_out_of_cash_in_march_without_action

In the mean time Jerry Brown wants to move forward on the Bullet train from San Diego to Los Angeles to San Fransisco. Good timing with the state out of money let do some more unnessesary spending.
edit on 1-2-2012 by PageAlaCearl because: (no reason given)

posted on Feb, 1 2012 @ 03:48 PM
Sounds like California needs to get a job.

Maybe start selling some of its crap on Craigslist.

posted on Feb, 1 2012 @ 03:52 PM
Again? Didn't they just go through this a couple of years ago? I remember the story on the news said "California to give out IOUs to pay their bills" I was dying laughing, but now it looks like it may happen again...

posted on Feb, 1 2012 @ 03:54 PM

Originally posted by thisguyrighthere
Maybe start selling some of its crap on Craigslist.

They can't do that. Most of California's "crap" is in the form of their politicians that refuse to practice any form of personal responsbility or political restraint with the state's tax dollars. Craigslist terms of use forbid the sale of pets, including "rodents."

posted on Feb, 1 2012 @ 03:57 PM
Why is it never an option to just spend less money? It seems they either want to auction off state assets, raise taxes or borrow money to fix spending problems...............the problem is SPENDING!

posted on Feb, 1 2012 @ 03:58 PM
post removed for serious violation of ATS Terms & Conditions

posted on Feb, 1 2012 @ 04:01 PM
reply to post by Fitch303

Because if you spend less money you cant win the votes of idiots.

A responsible financial position only works once the account has been blown to hell.

And then it only works for one election cycle. After that all the idiots are clamoring for you to blow money on crap left and right.

The voting mass is made up almost entirely of dependent zombies. You have to make them happy to win.

Being a rational responsible thinking human is political suicide.

posted on Feb, 1 2012 @ 04:04 PM

off-topic post removed to prevent thread-drift


posted on Feb, 1 2012 @ 05:04 PM
reply to post by PageAlaCearl

I wouldn't call it a bullet train .. it will be the slowest high speed rail in the World .. which, frankly, doesn't make it high speed does it?

posted on Feb, 1 2012 @ 05:19 PM
How soon before every other state needs to kick in to bail them out with Fed dollars? If we have to do that, then the state should have no right on how the money is spent. Just as they impose on cities that are failing.
When TARP was introduced, if I recall, the stimulus money they received was to hire new teachers and they spent it on the teachers pensions instead.

Take a look at were movies are made now. If you have cable and pull up the menu of the movie you are watching, it now states what country it was filmed . Canada is a big one with many European countries. Hard see many films produced in the USA. I wonder if their over taxation and regulation have anything to do with it.

posted on Feb, 1 2012 @ 05:41 PM

Originally posted by mugger
Hard see many films produced in the USA. I wonder if their over taxation and regulation have anything to do with it.

Imagine how brutally their film revenue will decrease next year if the porn industry makes good on their promise to relocate over the new mandatory condom use law LA enacted. I somehow doubt many of those companies are going to stay in California, especially since that law is likely to get on a statewide ballot sooner rather than later. CA will watch one of their few remaining big revenue streams pack their trailers and move to Nevada where real estate is dirt cheap and the state/counties have a much more logical and sensible track record on regulations.

Let's be honest here, no political pandering or insult intended when I say this, but California was a huge social experiment. What would happen if you took a state which has abundant resources, amazing beauty, and massive opportunities and turn it into a progressive, borderline socialist state? Would it work? Could Cali be a model for the dreams and desires of all the people who believe that the government must protect us from ourselves, redistribute our wealth, and regulate everything under the sun? The answer: It failed. Now, instead of opening up the state to the idea of salvation via dropping the regulations, rewarding success, and encouraging industry, the state's idiot politicians are trying to regulate and tax even more to save themselves from the ill effects of overregulation and overtaxation.

It's like a drowning person swimming deeper into the lake in hopes of finding a pocket of air.

posted on Feb, 1 2012 @ 06:01 PM
reply to post by burdman30ott6

Hell.. I'd pay to keep California affloat if it meant keeping Californians in California. They move across the United States carrying their absolutely destructive, downright idiotic hyper Progressive ideas. Californians are like cancer cells. The NW is full of Californians.. they brought their Socialism and their money .. now we have a super jacked up housing market with jacktards that don't know how to drive their prius's on the highway and Progressives dominating the political landscape.

I firmly believe the only thing keeping California safe for the moment is their climate and scenery. Why else move their? Their business regulations are insane.. their taxes? Holy cow. The socialist pandering? No thanks. Many tech jobs are flourishing in the NW because they flee the taxes and regulation in California. Luckily with the housing market crash it's stopping Californians from moving though .. they used to sell their house for a small fortune and could move anywhere in the country buying a house for cash (which led to the jacked up prices if they moved enmass like to the NW). I have very few good things to say about the state or it's people.

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