Posted on 01/15/2009 7:57:02 AM PST by SmithL
The state's nonpartisan Legislative Analyst's Office confirmed Wednesday that California could run short of cash as soon as Feb. 1 unless lawmakers and Gov. Arnold Schwarzenegger immediately cut spending and raise revenues.
The LAO's Michael Cohen and Jason Dickerson said the following:
• California faces the "double whammy" of a severe drop in revenues coupled with an inability to borrow because credit markets are frozen.
• The longer lawmakers and Schwarzenegger go without adjusting the budget, the more difficult it becomes to determine whom to pay.
Schools and creditors have first claim on the state's revenues, while state worker salaries and benefits, Medi-Cal claims and court-ordered payments are among those with secondary priority. State Controller John Chiang has said the first groups to receive IOUs or delayed payments will include Californians awaiting state income tax refunds and companies that do business with the state. . . .
(Excerpt) Read more at sacbee.com ...
Tax Hollywood actors and actresses more.
I simply don’t care if California insists on mismanaging itself into fiscal oblivion as it relates to State Services.
The voters of California allow this continue...
It is going to get really interesting, when the welfare checks bounce.
California should go bankrupt and renegotiate all salaries and benefits. Same as GM and Ford will. These pigs feeding at the public trough need a return to reality. And that reality is that California is not their piggy bank
Let the stupid suffer their fate.
yesterday, my husband went down to renew his drivers license. The fee has doubled.
I heard that the dmv fees for registration will be tripling. even with all the new founded tax money, California is still broke. Thanks Arnold!
and now this same man wants to run for pres?
Remember after the LA Rodney King riots the first thing that as done was set up temporary post offices so they could get the welfare checks and other gubbermint checks
If California refused to send you your tax refund, wouldn't you then be completely justified in not sending the state the normal tax out of your current paycheck?
/mark
Interesting phenomonon, that. Of course, if the check is an IOU...
Well, given the choice between cutting pork and ripping off taxpayers due refunds, there’s little doubt which course Arnold will take.
$28 for five years is not that bad.
They knew what they were doing, let'em crash.
If California goes belly up, it will get ugly. The ripple effect out to the other states will be even more gruesome.
For those of us who live in CA..do what you can to break the state. Postpone big purchases(less sales tax), if you owe the state, delay filing until 15 april,(less tax revenue), raise your deductions to pay less withholding, etc. etc. Make purchase on-line out of state. The only hope we have of correcting the situation is to bankrupt the state.
Awnald is already priming the pump for us to bail their sorry asses out!
We are going one better. Moving out of state next year and taking removing our retirement income taxes from the CA revenue.
Well, obviously they will call on Obama to bail them out. But perhaps they won’t do it formally until after he has taken the (false) oath of office.
(Incidentally, the story of Mohammed in the Hegira says to every Muslim that it’s OK to swear a false oath to your enemies as long as you do it for the furtherance of Islamic conquest.)
The difficulty is that if they bail out California, there will be 56 other states waiting in line for bailouts. But that’s OK, since Obama’s purpose is to wreck the country.
As long as it doesn’t involve cutting spending and behaving responsibly. The folks in California ( and yeah I are one) keep reelecting these morons. It is truly frightening to think that this current crop of hooligans makes me long for the days of Willie Brown.
Let them go BANKRUPT. There are plenty of precedents in US History where states have defaulted, and could wind up being a good thing.
Excellent idea. We could also find states running a surplus and git some of their cash. You know, some of that Obamer 'spread the wealth around' thingy.
No, the state is BK. The only hope is that they come to see it.
And the Virgin Islands and Guam and Puerto Rico and the District of Columbia. Oh, and Kenya.
Which state will you move to? We are native Californian's and would love to move out, but most of our family are in CA...if we could pick them all up with us, that would be great. Don't know which state to run to...or country!! Polly
God, I love this site.
Good, the Democrats took power to deal with the problems they have perpetuated for years. Our riches state is going broke and that’s just going to rock the economy. Just to be rid of the Jihadist-loving Democrats we may have to weather a depression.
I am from NW Florida and would love to go back but the grandkids are in Houston.
So this is why Mexico fears an imminent and sudden collapse. The migratory infestation of parasites will be headed South after decimating the food supply in the North. It would be only justice that the Terminator’s liberal ways terminate Calefornia gobernment. Perhaps some other states will take notice and do something about securing our borders. Sadly, its more likely that they will put their hands out and suck the remaining sustenance from this country.
The US's largest, richest state and world's 7th largest economy. Out of cash.
I believe this is what's known as the "prototype". California is giving us a glimpse into the future of the wider US.
Yes. you will note, CA could contimue as usual, it they could sell boonds. They can’t, no one is buying.
Either CA goes under, or the US does. Pick one.
Eliminate programs and fire half the state workers.
No layoffs or furloughs, just fire them!
“$28 for five years is not that bad.”
It is when I remember the renewal for 4 years was $2.
Now they even give you 2 renewals without having to take a test or get your picture and eyes checked so they get off with just collecting the money for 15 years.
Oddly, the Blue States are in far more trouble than red.
Thus saving me hundreds of dollars of lost time going to DMV every year to verify that my body is still warm ...
Good! Maybe this will be a wake up call for the Democrats who are trying to force higher taxes on the state. Lets double the sales tax to 14% and raise the Car Fees to $1,000 a year, lets ta the hotels for 20% room rates! How about a wine tax? or a Coffee Tax? or maybe a Movie Tax—Lets have $20 a ticket movies! These would raise all sorts of cash! How about bringing back the Byzantine ‘Sky Tax’ and everyone in the state must pay to walk around under the sky! Lets Tax all the illegals by charging to cross the border (heck they pay $1,000 per person to the coyotes—why not pay the state?) Lets put up more Gas Taxes so the price of Gas can go up to $10 a gallon! Think of the money it could bring in? How about turing the Freeways into Toll Roads? That could really bring in the cash—Hey maybe California could really build the high speed train after all!
Tax tofu at $1k/lb, and all your problems are solved.
Yep. And since 1994, the California voters have done....what about this?
Thats my point.
If I remember right setting up the temporary post office’s was a smart idea as it made them stop rioting so they could go get their welfare checks. I remember seeing them lined up waiting for their checks, it stopped them from rioting alright.
Hands up everyone. Who finds this to be a surprise?
(are they building the bullet train to Fresno yet?)
Since 1994 many of the voters have left the state. The liberal courts make it impossible to implement any kind of change.
Still comes back to the citizens of the state in my honest opinion.
Nice place to vist, but I’d never consider living there.
If you live in California, you have no doubt seen the homes of people who once lived along a country road that has now become a major hiway and they are unable to sell their home because of the constant heavy traffic and 24 noise.
Or maybe you have seen neighborhoods that were once nice places to live and are now littered with gang graffiti, abandoned cars and bars on the windows. Some folks probably hung on to their houses in neighborhoods like that because they didn't know anything else and it had always been their home. - Now they fall into the trap of not being able to sell, even if they want to.
California, on the whole, is experiencing that sort of cultural and physical shift. Not seeing it or acting on it is an acceptance of whatever comes of the future.
Well, cry me a freakin’ river. Let all the Hollywierdos pay for it.
And the Virgin Islands and Guam and Puerto Rico and the District of Columbia. Oh, and Kenya.
Ahem! We, in Texas don't need no stinking bailouts.
Lefties won't tax Big Entertainment because it's their alternate voice. If it was run by conservatives, they'd be all over them. (big education, too)
Ever heard of spending cuts, guys!?
I’m a california residents, by-the-way.
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