CA: Investors, Wall Street skeptical of bond

Mercury News ^ | 2/6/04 | Ann E. Marimow

[NormsRevenge]

SAN FRANCISCO - Passage of Gov. Arnold Schwarzenegger's $15 billion bond on the March ballot won't resolve an unwillingness in Sacramento to make politically unpopular decisions needed to balance the state budget, investors and rating agency officials agreed Thursday.

At the second annual California Municipal Finance conference in San Francisco, state Controller Steve Westly and state Finance Director Donna Arduin said the bond measure is the only practical short-term solution to the state's budget crisis.

[NormsRevenge]

The byline on this article...

ANALYSTS: PLAN WON'T FIX STATE'S PROBLEMS

[NormsRevenge]

.

[NormsRevenge]

"..even if the bond passes, it won't be enough to revive California's credit rating, already the lowest of any state in the country. And it won't address Wall Street's concerns over the continuing gap between revenue and spending."

[So Cal Rocket]

What part of CUT SPENDING don't these clowns understand?

[junta]

Our "elite" won't face up to the fact that CA is the harbinger of our Third World future.

[onedoug]

NO. NO. NO. And NO.

[farmfriend]

Short list.

[kellynla]

"What part of CUT SPENDING don't these clowns understand?" And it has been pointed out repeatedly for over a year now, that if the budget were cut 13% it would be in balance a year from now. A bond issue is only a band-aid that will just add more debt and prolong the inevitable. A 15 billion dollar bond will cost us an additional 6 billion dollars in interest. More debt plus more interest equals more taxes. Helloooooooo???

[E.G.C.]

BTT!!!!!

[SierraWasp]

"Helloooooooo???"

But kellynla... We won the Recall election! Nothing matters as long as we won, right? (/dripping sarcasm!)

[AdamSelene235]

What part of CUT SPENDING don't these clowns understand?

How can you buy votes with other people's money, if you cut spending?

[kellynla]

:-) We won the recall...and it looks like we may have to institute another one. LOL We were against bonds under the Dimwit Davis and someone needs to inform our present governor that we are against this bond too. Bonds are still taboo in CA no matter what party promotes them. Point, Game, Set, Match!

[Digger]

I hope that you are correct. Anytime to see a politician have to answer the call & CUT spending is sooo pleasurable. Can you imagine the heavyweights that they will bring in to support this bond issue & thren we all renounce it.

[kellynla]

I haven't done the research but if my memory serves me correctly bond issues have historically been losers for many, many years in CA. Let's just hope that this one fails too and the geniuses in Sacramento have to do the hard and right thing and cut the budget to balance it!

[SierraWasp]

Hey! Heleny has posted an excellent compilation of worthless bonds, (over on the CA board) including so-called "water bonds" approved during the devious davis mal-administration!

We need an "Arnold audit" (grin) of how the money on these fraudulent "water bonds" and "parkland bonds" are being used to pay humungeous consultant and attorney's fees for abjectly absurd "studies" designed to help GANG-GREEN groups control our rural "watersheds" and "viewsheds!" ("Yes honey, that means our back yard!")

That will be the "scene of the crime!" We need CSI California style!!! (Not just Lost Wages/Miami Bich)

[farmfriend]

Excellent idea. I'll email you later.

[SierraWasp]

Budget gets rough treatment at first hearing /

Democrats reject cuts in education, health care and highways -- Senate Democrats, holding their first hearing Thursday on Gov. Arnold Schwarzenegger's budget proposal for next year, soundly rejected the governor's call for deep cuts to higher education, to highway construction and to medical aid for the poor. The action highlights a continuing schism between the Republican governor, who says the state has overspent its way into the current problem, and Democrats in the Legislature, who would rather see tax increases to avoid deep cuts to services. Lynda Gledhill, Robert Salladay in the Los Angeles Times -- 2/6/04

From www.rtumble.com's CA headline website.

[calcowgirl]

I haven't done the research...

Try this

[calcowgirl]

The state is on track to run out of money in 126 days,'' said Westly, a Democrat, who was also in Silicon Valley on Thursday to campaign for the measures with the Republican governor. ``We need to buy ourselves a little bit of time.''

A little time???? The short term borrowing was "a little time". Gray Davis' 5 year bonds were arguably "a little time". $15 billion in bonds for 15 years are NOT "buying a little time".

[kellynla]

"Try this"
Thanks but no thanks. It's Friday and I am about to shut it down for the weekend. But if you have knowledge of the success of bond issues in CA recently I would appreciate you enlightening me.