Posted on 01/19/2007 11:46:43 AM PST by NormsRevenge
According to Gov. Arnold Schwarzenegger, California's financial condition is "fantastic." Spending has been brought under control, the budget has been balanced, and our debt is being paid down. ...
--snip--
... In fact, spending is growing faster than it did under his recalled predecessor, Gray Davis. The state is now running the biggest deficit in its history, and the only way it can pay its bills is because of massive borrowing carried over from 2004, ...
--snip--
The governor justifies his claim that the budget is balanced by concocting a new accounting concept he calls the "net operating deficit."
Here's how it works: To enable his claim that he is paying down debt when it is actually increasing, the governor made some prepayments during the past two years – akin to paying more than the minimum balance on your credit cards. But to hide the deficit he created on the other side of the ledger, he simply doesn't enter those payments in the state's checkbook. ...
--snip--
Meanwhile, borrowing is now completely out of control. When Gov. Schwarzenegger took office, the percentage of the general fund required to make the payments on state bond debt was 3 percent. Since then, that burden has doubled to 6 percent and will exceed 8 percent next year. ...
Ironically, the state's debt-service ratio never exceeded 2.2 percent throughout the 1960s, ... under Gov. Pat Brown.
--snip--
State revenue in 2006 was projected to grow just 1.2 percent, and actual revenue is now falling behind even this modest goal. The governor's 2007 budget is predicated on robust, 7.1 percent growth next year. If the state's economy merely does not deteriorate any further, it will produce a $7.5 billion deficit – placing the state on the brink of insolvency within 18 months.
(Excerpt) Read more at ocregister.com ...
"Everything has to be provided to the people" - Rnold Schwartzenkennedy.
BTTT!
A large percentage of the revenue increase is by a new tax on casino's - a law not yet passed and then deemed Constitutional to tax basically another country (reservation) in your country.
There's much more to this piece, had to snip the heck out of it.
That's why thousands of more machines have been and will be allowed by and approved for tribes across the state in their casinos.
The entire casino laws are corrupt and unConstitutional. What is we passed a law that only white people could own casino's
If the state has gambling then everyone should be able to get into that business.
He meant the Mexican people.
All 120 million of them.
Dang I love Tom!
You got the gist of the story. Arnold has been drinking the Kennedy Koolaid at Uncle Teddy's on Martha's Vineyard and now he is a republican in name only.
Tom's our resident "voice in the wilderness".
Too bad folks didn't or wouldn't get the message.
"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
not true. The Indian reservations are not technically part of California.
They are semi-sovereign entities owned by the tribes themselves
Coincidentally, that will be during an election year if things play out as written. I wonder if voters will be paying much attention?
You can only go to the well so many times.. or something like that. ;-)
BTW I gave a copy of that to Tom the other day when you posted it.
Seriously, what does happen when a state goes bankrupt? How would California's bankruptcy effect the national economy?
if it was truly that scary, then the US itself would have crashed and burned by now.
we have a far worse debt problem on a national level
"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
Hey, cool! I love McClintock, and I'm happy to hear that you sent it to him. It's a famous cartoon from The New Yorker, and every time somebody in government builds a plan based on happy thoughts and unrealistic assumptions, I'm reminded of it.
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