Posted on 10/02/2010 5:40:07 PM PDT by the invisib1e hand
How not to? By borrowing more money. Bloomberg reports:
California Governor Arnold Schwarzenegger and top lawmakers came up with a compromise to close a $19.1 billion deficit and give the state a budget, ending a record three-month impasse with a vote expected next week on the spending plan.
The accord doesn’t raise taxes, as sought by Democrats, nor does it dismantle the state’s welfare system, proposed by Republicans, the leaders said yesterday. Schwarzenegger and the Democratic and Republican heads of the Senate and the Assembly, known as the Big Five, came to the agreement after a final five- hour negotiating session in the governor’s Sacramento office...
...Passage of the plan would clear the way for Treasurer Bill Lockyer to borrow about $10 billion on Wall Street by issuing short-term notes needed to pay bills until tax revenue comes in later in the year...
By borrowing "until revenue comes in."
I think "greece" should be a keyword here, too.
the gop SHOULD NOT agree to borrowing. the GOP are once against cowardly ducking the issue and pushing the problem to a future date to deal with
so instead of $19billion hole, they now have to pay even more because of interest payment.
These are not auspicious omens.
These idiots are going to keep on borrowing until there’s violence.
By golly, that’ll solve the problem! Just borrow more money, what could possibly go wrong?!
As long as they can borrow, they will.
In other words, “In the current political (economic) climate, we can’t raise taxes, so let’s borrow until we can.”
Vote all of them out. They all must have cheated on their college exams or they lied about having an education. I would sooner have my local garbage collector working on the budget than these geniuses.
In order to make up this year’s $19 billion deficit, without cutting spending, in a state with 35 million people, you need to collect an additional $600 or so from each person, $2400 from a family of four. Since over half of the people don’t pay any taxes, that’s $4800 from the half that do. If you borrow the money and pay it back in 2020, each family’s share in 2020 will be what, $10,000 or so. We can’t afford these idiots any longer.
If they’re not going to do anything,could they push back some of the restrictions on businesses.
That might help for next year.
California ratings:
Cost of Business: #48
Cost of living: #49
Business Friendliness: #48
http://www.cnbc.com/id/25501963/
Highest state sales tax in U.S. 7.25%
Extra income will come from where?
Who would be stupid enough to buy these worthless bonds? SEIU ... thy name is PONZI!
hey, it could be worse! They could be #57!
Well, the fed has a backup plan...http://www.freerepublic.com/focus/f-bloggers/2594956/posts
Pretty soon California will be issuing it’s own currency ?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.