Posted on 10/11/2008 11:00:08 AM PDT by John Jorsett
With credit markets in New York in crisis last week, California Gov. Arnold Schwarzenegger sent an extraordinary letter to Treasury Secretary Henry Paulson asking for $7 billion. Although the governor has since withdrawn that request, it testifies to the dire state of his budget.
Yet days before penning his note, the governor told an audience at the Commonwealth Club of California not to worry about the state's budget crunch and to approve $9.95 billion in new debt on the November ballot to build a bullet train to connect Los Angeles to San Francisco: "Just because we have a problem with the budget does not mean people should vote 'no' on high-speed rail." (A spokeswoman confirmed Monday that, despite the request for federal money, the governor still supports the initiative.)
Actually, the state's budget woes should give votes pause -- especially since high-speed rail is a fantasy that has as much chance of delivering on its promises of creating 450,000 jobs, vanquishing road congestion and lowering greenhouse gases as "Conan the Barbarian" had of winning the Oscar.
The GoldenState's finances are a mess. California's general obligation debthas tripled in the past six years and is now almost equal to the state's $145 billion annual budget. Even without any new loans, in three years the statewill spend a record 6.1% ofits budget just to service the debt it already has. What's more, with the economic slowdown, the state is now expecting a deficit larger than $1.1 billion for the first three months ofthis fiscal year. Thestate's rainy-day fund is running dry, which has hurt its credit rating.
Under such circumstances, the prudent course would be to avoid taking on new debt, even for worthwhile projects, much less sure-shot losers such as the high-speed rail. But in California, prudence is in short supply.
(Excerpt) Read more at online.wsj.com ...
Heaven forbid CA cut spending 10.5 billion annually on programs benefiting illegal aliens.
"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
MAN UP ARNIE! COUNTRY FIRST!!!
as long as long shore workers make on average $150,000 a year, I could care less about Cali's crisis....
they just passed a budget out of control with no cutbacks...
they could just raise their taxes.....maybe raising their taxes people would leave sooner, and the govt would have fewer people to feed, dress, and house, and teach.
Pinging Willie Green! Pinging Willie Green!
"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
I don’t believe California has laid off one employee, shut down one commission, or renegotiated one union wage contract. They did cut a few budgets but essentially, they haven’t done anything to help themselves.
First, ask for the money, then say never mind. Talk about the boy-anator that called wolf. No credibility for Schwarz.
"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
And Ahnuld’s new-found Democrat friends will blame him. Goodbye, Arnold.
Tell Schwartznegger to forget about the bullet train, close down California's universities, remove illegal aliens from the welfare rolls--and then we'll talk.
At this point, bankruptcy is probably the best thing that could happen to California. That state needs a CTRL-ALT-DEL of its entire bureaucracy. It’s been sad to see a state with so much promise be run into the ground by runaway socialism.
"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
I have lived here for 20 years in the SF bay and am CONVICED the only way these MORON democrats will ever change their STUPID views and voting habits is
BANKRUPTCY OF THE STATE
that is the ONLY thing that will WAKE THEM UP
"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
Yep.....California doesn’t have any money but ....spend, spend, spend. They are looking to raise taxes. Keep the people broke and you have control of them.
Liberals in control of the legislature for ya.
Sadly if Obama wins - more states will end up like Michigan and Calliee-Porn-eeha.
You’ll get your wish, because one thing the people in charge, at the state or national level, appear completely incapable of even considering is stopping or even amending the spending patterns leading us to bankruptcy.
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