Posted on 12/11/2008 10:55:50 AM PST by Ernest_at_the_Beach
Muscle man Arnold Schwarzenegger has told the California legislature that the state is out of money. California's budget deficit is up $3.6 billion since the last estimate early this year. The deficit is now projected to be $14.8 billion.
In a state where property values are falling and businesses are failing at a remarkable rate, increasing taxes is an attractive but impractical option. State legislators are usually more corrupt and pandering than their brothers in the Congress. Going to their voters with plans to cut garbage collection or high school sports would probably diminish their chances of being sent back to Sacramento.
California is not alone in it troubles. The state economy is so bad in Michigan the the governor has just closed a state prison to save $134 million. No one has said where the inmates will go. If there is an auto company bailout, they may be able to find jobs in that industry. Florida recently announced that its budget for next year will be $2.3 billion in the red.
Now that the government has become the lender of last resort for banks, auto companies, and homeowners, it will almost certainly have to move on to states and municipalities.
(Excerpt) Read more at 247wallst.com ...
News ping!
fyi
Don’t forget the media. They are on the list. If they don’t get their money, they will say bad things about The One.
Cafifornia has 808 state agencies. No wonder they have no money.
This is going to get VERY interesting.
I suspect some states will become extremely vociferous opponents to making their citizens bail out California when everyone has budget problems of their own.
Should people in, say, South Carolina, be forced to pay up for a state that rolls out the welcome mat for illegal immigrants, then cries poor when the people they’ve virtually invited in don’t contribute to the tax base?
I know this sounds melodramatic, but it’s issues like this that will test the glue of our Union. States have a responsiblity to manage their own budgets and not pick the pockets of other states to cover their horredous decisions. If states are going to be compelled to rescue other states, why have “states” at all? One country, one budget, one law, etc.
California - too BIG to fail!
- John
I was thinking the same thing:
If autos, insurance, banks, and agri-businesses can get bailouts, why not public unions (with CA first)?
Taxpayers get the bill, either way — either via higher federal income tax, state/property taxes, or inflation.
Why do politicians & unions think shifting the cost around from a state to federal balance sheet “help” matters?
Higher taxes still means recession, for our country ....except for labor unions’ war chests, that is. And isn’t that all that really matters?...
:(
Thanks, a pants load, unions & politicians
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