Posted on 05/14/2008 9:46:22 PM PDT by Zakeet
To close California’s huge budget gap, Gov. Arnold Schwarzenegger has a plan: get a Wall Street investment firm to lend the state $15 billion against future proceeds from its rather unsuccessful lottery program, with the lending firm taking large risks for a low-yield return.
And if that fails, the state’s sales tax will go up a penny over the next few years.
The lottery idea with a tax increase only as a backup reflects the severity of California’s $17.2 billion budget gap and Mr. Schwarzenegger’s unwillingness to reverse course on a longstanding pledge not to raise taxes and to continue pressing his most unpopular budget cuts from this year.
The state, like many others around the country, has struggled mightily to bring order to a budget greatly hampered by the mortgage crisis, other weaknesses in the housing market and a slowdown in personal income tax payments.
[Snip]
Mr. Schwarzenegger also seeks $10 billion in cuts to the budget, but has scrapped his most controversial plans, like the early release of 22,000 prisoners, the closing of many state parks and hundreds of thousands of dollars in cuts to state education.
The budget does call for the cut of a $111 million health care program for legal immigrants, and would divert nearly $830 million in gas tax money pegged for public transportation projects into the general fund.
(Excerpt) Read more at nytimes.com ...
What a deadbeat governor. TOTAL RECALL is say.
So who profits the most from gas sales? The gubmint does no work, but gets $$$.
Great plan Gov. Obtain a loan against the potential future losses the state will have with a lottery that was suppose to provide a resource for CA schools. What a moron.
Were they asleep behind the wheel? More likely, they are just inept. Well paid and inept. The things government can't do well are endless. If anarchy weren't such a disorganized sh*t-fest, one could justify it in face of the rampant waste produced by 'government'.
Someone with intelligence would ask why state revenue is down and grasp that companies are leaving the state, while housing construction is decreased...plus add in the massive overpayment of civil workers from the police and fire department, and the university costs to the state...and you’ve got something wrong.
Arnold has now stepped into deep water and can’t deliver. I’d stand up another recall election and put another idiot into the office. I have no confidence that this will fix the problem but borrowing against the lotto funds....simply extends the pain out for twelve to eighteen months. Eventually....it comes back.
LOL. And yet, the bottom line budget number is still going up.
I just love these "cuts." Kinda like taking a cut from the $1 million dollar salary you don't get.
>>>What a deadbeat governor. TOTAL RECALL is say.
In fairness he did try to push through programs and policies that would have reduced the probability of the meltdown they are experiencing. Campaigns by the California dems and labor unions persuaded the voters to reject every proposal. His hands were effectively tied as the voters decided they were in favor of anything that would help the state as long as they didn’t have to make any sacrifice in any sphere.
Don’t get carried away by his accent. He’s a governor, not a dictator.
"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
"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
"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
Budget crisis?
He is cutting medical care for LEGAL IMMIGRANTS, yet completely glosses over.....well, you know the rest!
The elephant is smack dab in the middle of the room and no on sees it. Years of being a sanctuary state is coming to a head. How much does the illegal immigrant population cost California? Billions
And as for Wall Street bailing them out, I’m not a business whiz but I wouldn’t touch it. You have the biggest state in the country becoming a third world hell hole. Future proceeds from the lottery? You’ve got to be kidding me.
"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
"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
Makes smoke and mirrors look good.
Well, it takes real genius to close a budget gap with taxes and borrowing.
Criminal is a better word. These folks running California are thieves.....
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