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Stimulus deal could mean $26 billion for California
LA Times ^ | 2/13/09 | Richard Simon and Evan Halper

Posted on 02/13/2009 10:28:36 AM PST by NormsRevenge

Reporting from Sacramento and Washington -- The $789-billion economic stimulus bill headed toward congressional approval is expected to pour $26 billion into California -- building roads, upgrading schools and launching other projects intended to create or save jobs.

The expectation is that the federal government will funnel at least $9.2 billion directly to the state treasury, mostly for education and healthcare, in the next 18 months. Millions of Californians will get a tax cut aimed at promoting consumer spending.

But the money will only go so far in easing the state's financial pains.

In Sacramento, lawmakers are gearing up to vote in the coming days on a state budget package that will hit Californians with nearly half a dozen new taxes and deep spending cuts in almost everything state government does. The federal windfall won't stop that from happening.

The state's deficit through mid-2010 is $41 billion, and not all of the federal money can be used to help erase it. Some won't arrive on time. Some is specifically directed to other purposes.

Still, lawmakers say the legislation's effect will be profound. "California cannot do without this bill," said Rep. Lois Capps (D-Santa Barbara).

The austere budget package in the works in Sacramento already assumes that the federal assistance will wipe out nearly a quarter of California's deficit. If it falls short of that, Californians are in for even more financial carnage; about $1 billion in extra program cuts and tax hikes would be triggered under the budget plan.

The extra cuts would apply to welfare grants, aid to the elderly and disabled, and Medi-Cal. State colleges and universities would also lose money, as would the court system.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Government; Politics/Elections; US: California
KEYWORDS: calbudget; california; stimulus
Down a bit from earlier hopes of the lieberal swine that seek to steal even more from the Treasury...

Like pigs at the trough, they just keep coming until it's all gone,, and then they just squeal for more.

1 posted on 02/13/2009 10:28:36 AM PST by NormsRevenge
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To: NormsRevenge

From what I have heard....80 or 85% of Porkulus goes to states to pay down their debts. Lovely.


2 posted on 02/13/2009 10:31:25 AM PST by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: NormsRevenge

Boo hoo...my state’s only likely to get $2B to blow.


3 posted on 02/13/2009 10:32:28 AM PST by anniegetyourgun
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To: Puppage
From what I have heard....80 or 85% of Porkulus goes to states to pay down their debts. Lovely.

Directly into the black holes known as "state treasuries", never to be seen again.

4 posted on 02/13/2009 10:33:08 AM PST by Cementjungle
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To: NormsRevenge

The conservative red states are going to pay for the filthy liberal blue states - so instead of them reforming Obama has created more dependence on welfare.

Damn the RINOs, damn the rats and damn the leftists.


5 posted on 02/13/2009 10:34:38 AM PST by sasafras (TIME FOR A RESURGENCE - FREEDOM IS NOT FREE - NO MORE COMPLAINING - LET'S GET BUSY!)
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To: Puppage

Yeah, and what happens next year?


6 posted on 02/13/2009 10:35:04 AM PST by RexBeach ("Do your duty in all things." Robert E. Lee)
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To: NormsRevenge

Do you think a special ed teacher in East Bumfuck, Pensyltucky, with a master’s degree and fifteen years experience, making maybe $40k/yr, is going to like subsidizing the retirement of a 50-yo prof in CA, who is laying on the beach and collecting 6-figures?

I hope not.


7 posted on 02/13/2009 10:38:38 AM PST by patton (SPQA - the last, the least and the lost)
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To: NormsRevenge

Woo, hoo the party can continue!


8 posted on 02/13/2009 10:41:34 AM PST by beaversmom
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To: NormsRevenge
Yeah, we get 26 billion of borrowed money and the California politicians continue to spend over balancing a budget.

Where in the Federal and State budgets have unions connected to the government had their salaries and benefits renegotiated?
Where is their long term sacrifice?

It should be illegal for unions to be allowed in government associated labor. There is no place for competition.
At least in the private sector the public has a choice to go buy elsewhere. The business can fail and th better one can be patronized.
In my opinion, the concept of a union can't survive in competition.
In the case of a union connected to public funded jobs it is unethical because they get elected officials who see to it they get big dues, benefits and pay raises that could NEVER be seen in the private sector.

Unions must eventually be banned from places like governments and docks.

9 posted on 02/13/2009 10:44:00 AM PST by A CA Guy ( God Bless America, God bless and keep safe our fighting men and women.)
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To: NormsRevenge

As a CA resident, my taxes are being raised to cover excessive, reckless, indulgent spending. The Federal super-spenders are passing a bill that is designed to bail out the super blue states in revenue trouble. My taxes will pay for thattoo, as will my kids taxes even though they don’t live in CA. This is taxation without representation if there ever was an example. How is there any way to rationalize such behavior.


10 posted on 02/13/2009 10:45:33 AM PST by pacpam (action=consequence and applies in all cases - friend of victory)
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To: NormsRevenge
Stimulus deal could mean $26 billion for California

Could also mean Chapter 9 Bankruptcy for California.

11 posted on 02/13/2009 10:51:34 AM PST by Oldeconomybuyer (The democRATS are near the tipping point.)
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To: pacpam
As a CA resident, my taxes are being raised to cover excessive, reckless, indulgent spending

which nullifies the federal stimulus money. The recession will carry on in CA as if the billions in spending never happened. But you'll still have to pay the bill.

12 posted on 02/13/2009 11:03:59 AM PST by Reeses (Leftism is powered by the evil force of envy.)
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To: NormsRevenge
The expectation is that the federal government will funnel at least $9.2 billion directly to the state treasury, mostly for education and healthcare, in the next 18 months.

And in weird Sacramento-speak, the criminalegislators will call this a $9.2 billion "cut" in state spending.

13 posted on 02/13/2009 12:46:37 PM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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