Posted on 05/23/2009 5:39:41 PM PDT by St. Louis Conservative
Gov. Arnold Schwarzenegger and many leading California politicians have been warning of dire consequences if the state's voters rejected their five budget-related initiatives on Tuesday's ballot. The combination of so-called reforms and large tax increases wouldn't have come close to fixing the states' problems even if they passed, according to the governor's own budget projections, so voters should shrug off any of the blame politicians are laying at our feet. Legislators and the governor are hired, so to speak, to deal with the government's budget, and they are the ones who continue to fail at their jobs.
It is clichéd, but reasonable, to compare the state budget to a family or business budget. We'd all like to give our kids everything they want and to live beyond our means. But after a while, we've got to rein in spending and live within the budget, or else everything is on the table, including bankruptcy. That, perhaps, is worth considering for the state. Why not? California politicians have enriched the public-sector unions, and all those contracts are off the table. Union officials are unlikely to agree to any major pay or benefit cuts, and there's hell to pay come election time for politicians who directly confront union power. Bankruptcy could break the logjam.
Orange County lived through the largest municipal bankruptcy in the nation, in 1994, and life went on following that dire situation. Bankruptcy enabled the county to get its fiscal act in order. In fact, CEO Tom Mauk told the Register that the governor's proposal to divert property tax revenues from municipalities to the state would add $43 million to the county's $100 million general fund hole.
(Excerpt) Read more at ocregister.com ...
Sounds like a plan!
Unfortunately, a state can’t file bankruptcy. Of course, maybe if they changed themselves into a municipality, they could file Chapter 9.
sw
As to whether Congress would do it, I doubt it. But I could see California asking Congress to do it, to try and extort more funding from the feds.
whatever happens, you can bet O handing hundreds of billions to CA (as long as they are delivered to unions)
Wow, free advice from the newspaper business. A state is not a corporation and there is no provision in law for a state to declare bankruptcy. They have 3 options: cut spending, raise taxes, illegally borrow. They are Democrats so they can't cut spending.
If CA declares BK, who’s going to do business with them again?
Obama and our money. People have been telling California for years that their Industrial Military Complex is short lived. They didn’t listen.
Yeah, and the voters warned the state leadership what they would do if that leadership couldn't control it's spending.
Did it listen? Hell no.
Well, Chapter 11 is not the way to go. Pull your heads our of your orifices, and cut spending until you balance the budget. It's that simply you simpletons.
IMO, California was gutted in order to make the handover that much easier.
I’m not sure that states can file bankruptcy. I’ll have to read the code again.
I saw this coming in the 80’s. When the cold war was finishing up so was funding to CA. for military muscle. Silicon Valley in the 90’s supplanted that loss but now both are at a steep decline and leveling off. California spent it’s capital. (It really is a beautiful state btw).
Courtesy of RATS, Inc. They’ve run the state into the ground & RINO Gropinator helped them.
You missed the easiest option - default. Mississippi has used that in the past.
Can you believe it had a balanced budget until 2000?
Seriously, Davis was handed off a balanced budget.
Then he and the Legislature just went hog wild. The economy was booming and they spent like there was no tomorrow.
We had to toss Davis out on his rear, and now we’re going to have to do the same thing to Schwarzenegger.
“How to Ruin a State in Under Ten Years” Soon to be at a theater near you.
Is 1-800-Jerry back in the running?
Well, he was making waves like he wanted to run. We’ll see.
I’m not positive there’s going to be a recall of Schwarzenegger, but I read something the other day that made me think it just might happen.
All kidding aside California is hamstrung now by the enviro-whackos. They are not realistic in their policies. A failed state such as California is terrible, yet maybe it will wake up some of the other places in our nation.
I just don’t want to see our creditors stiffed. I’m proud enough of my state to want it to get it’s house in order and pay down it’s creditors like people with character do.
I know what you mean, but people are so stupid today, they’d look at California and go, well, see, we don’t have to worry. The worst that could happen is we’ll have to declare bankruptcy like California. I don’t want to be that example.
I don’t either. By “failed state” I am strictly talking politics. California needs to stop enrollment to the welfare rolls. They then need to assess current enrollment.
I have noticed that as Washington flourishes so does Sacremento. That is a bad place to be.
“I recall when Arnold was the darling of FR with his promise to cut spending”
I tried to warn everyone what a pussy whipped socialist POS he was.
Dear Bee:
Here's what now:
1. Eliminate all services to illegals except any emergency care needed to get them back to their country.
2. Privatize 2 priusons. Rinse, repeat.
3. Cut pay for all state employees making over 3,000 a month.
4. Reduce or eliminate the state capital gain tax.
5. Reduce the state income tax by 2%.
6. Reduce administrative positions in school districts.
7. Build 20 nuclear power plants in the next 20 years.
8. Eliminate legislative staff positions like the elevator operators in the capitol building.
9. Cut state and local pensions back to the level of 1998. 11. Cal spends 9,000 a year per school student. I propose we give vouchers in ten school districts for $7,000 per student. A classroom of 25 would cost $175,000 instead of $225,000. They could easily pay the teacher half of that and use the rest for admin, equipment, supplies etc.
There are 6.3 million students in Cal. If you do the entire system, you save $12 bill a year and introduce competition into the education system.
12. More oil exploration and drilling.
When the govt can no longer pay it's employees? They no longer are employees.
Slaves or on Unemployment? .............Mebbee both!
I realize your statement was intended to address the politics. I appreciate that.
Just to let you know how bad I thinks things have gotten, I saw someone on the forum use the term Excremento the other day, and that’s how I’ll be referring to it, until our state leadership pulls their heads out.
I’m sorry, but right now I can’t remember the person who coined this. It was brilliant.
I have been a big fan of making the welfare rolls a lot harder to get on, but my focus is the billions we spend on foreign nationals. That is job one as far as I am concerned.
Our national guard should be brought out immediately, and every illegal immigrant should be picked up and returned home as fast as it can be facilitated.
Then, I would offer relocation to any person on welfare who wants one of those jobs, or I’d cut off the spigot.
When California’s leadership gets serious, we’ll pull this state back to good shape in short order. They aren’t serious yet. Time to take out the steel tipped boots, and get to work in Excremento. Is time to send our elected officials packing.
The State of California does NOT have bankruptcy as an option. Now, repeat NOW ...is the time for California to dance to the tune of its creditors. The legislators and governor be damned.
bingo....good math
This movie will not be on the big screen but YOUTUBE will have plenty of teaser videos....IMHO.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Bankruptcy is merely the mechanism whereby a business with negative net worth is dissolved by the court, with the court deciding, based on legal principles, which if any creditors get any remaining assets.
Although the People's Republik of Kalifornia cannot technically file for bankruptcy, they will find themselves taken to court by anybody who claims that they should get whatever little revenue the state collects. The courts will have to weigh competing interests to decide who gets paid and who does not.
So it appears to me that the only difference will be that Kalifornia will not cease to exist as a result of the court's actions. But otherwise it will be about the same as a bankruptcy.
5.Eliminate the state income tax entirely
That should be first and formost on the refreshing revolt from CALIF. Taxpayers.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
That’s enough for a start... ;-)
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Easy?
The Planters’ Bank bonds were issued in 1831 and in 1833. The Legislature in response to a demand for more banking institutions chartered the Union Bank in 1838 with bonds issued that same year. In 1841, there was a default in interest on both the Planters’ and Union Bank bonds. The Union Bank bonds were repudiated by the Governor of Mississippi in 1842, and the Planters’ Bank bonds were repudiated under a referendum vote of the people in 1853. The Union Bank bonds matured as to the principal in 1850 and 1858. The Planters’ Bank bonds matured as to principal in 1861 and 1866.
These suits were filed in the Chancery Court in July of 1993, which was 152 years after the default in interest, 141 years after the vote by the people to repudiate the Planters’ Bank bonds, and 126 years after the last bonds reached maturity. This was also 120 years after a 7-year statute of limitations went into effect which would have extinguished any possible right on the bonds in 1880 at the latest.
May i suggest a review of our data base.
While a few California accounts pimped for the Austrian and scant other Republican, partisan expatriates joined the chorus, California freepers were substantially, the lone voices of sanity, warning any who would listen of the dangers of the Orange County Lincoln Club, Pete Wilson's retired gang that couldn't shoot straight, the New Majority and Duf Sundheim as this almost criminal exterprise coerced the party faithful and independents fed up with the compromised character of Davis, to anoint their great, Austrian, Trojan horse.
Sure it’s easy. You repudiate the obligation, and 150 years later, a court rules in your favor.
I think North Carolina defaulted on a bond issue, as well.
Yes, Congress could do it. But as it is, they haven’t.
I can only hope that California actually defaults on their loans so we can show how socialism, or the form practices in that state, is ultimately a failure. I can also only hope that the lesson that socialism is a failed methodology is learned by the masses. Yes, I am sure this is only a pipe dream.
JoMa
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