Posted on 02/08/2009 10:05:32 AM PST by NormsRevenge
California is broke.
But lost in the day-to-day drama over IOUs, furloughs and huge deficits is a basic question many Californians might be asking: Where has all our money gone?
A Mercury News analysis of state spending since Republican Gov. Arnold Schwarzenegger took office in late 2003 found that he and the Democratic-controlled Legislature have spent money well beyond the rate of inflation and California's population growth — $10.2 billion more.
Yet the programs that received most of that money are priorities that Californians broadly support or have demanded at the ballot box: tougher prison sentences for criminals, health care for uninsured children and an aging population, and a cut in the "car tax" that they pay every year to register their vehicles.
The problem, according to a report last week from the state auditor, is that Republican and Democratic politicians in Sacramento have shirked their responsibility for the past decade, papering over shortfalls that started after the dot-com bubble popped in 2001.
Like homeowners paying off one credit card with another, they used accounting gimmicks and more debt, rather than raising taxes or cutting spending, to balance the books. As the economy worsened and tax receipts plummeted — from $102.5 billion last year to an estimated $87.5 billion this year — the house of cards collapsed.
Recession's effect
"We got what we wanted and we've never figured out how to pay for it. And then we had this recession, and that made everything worse," said Stephen Levy, director of the Palo Alto-based Center for the Continuing Study of the California Economy.
"Everybody's got somebody to blame, but in the end these are services people wanted," Levy added. "Look at the screaming when you close a swimming pool, let alone try to cut education."
(Excerpt) Read more at mercurynews.com ...
A Ponzi scheme always fails.
Republican and Democratic politicians in Sacramento have shirked their responsibility for the past decade, papering over shortfalls that started after the dot-com bubble popped in 2001.
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It sure as the heck wasn’t conservative Republicans who did this to the state... regardless how the liberal rags and Dems spin the numbers.
Nice try at blaming the people, fool. People don’t trust govt cuts because the people running the govt cannot be trusted.
They cannot be trusted because for the most part, they are economically illiterate, and couldn’t run a McDonalds for a profit. They’ll do anything to stay in office because, they’d be penniless otherwise.
By “fool”, I meant Levy.
This is exactly what you get when voters elect the stupid and incompetent, aka sniveling liberals, and entrust them with taxpayer funds.
Wonder how much the criminal justice and health numbers are inflated by the illegals and the third worlders invited here by Ted Kennedy and his ilk.
Would be nice to know.
Pretty well sums up America at large the last twenty years or so.
This is not about cutting car taxes and putting more prisoners in jail for longer sentences. It is about illegals and entitlement users, period. In short, socialism that supports corrupt legislative, voting and local governance. This is just a ploy at laying blame away from the real causes.
IIRC some of the richest families bid the Golden State Adios and took their money and businesses elsewhere (Buck knife comes to mind) - and the losses the first year where on the order of 10s of millions.....
That’s interesting, but it doesn’t include a lot of basic stuff. Like, for instance, how much more interest is the state paying on the huge bond issues that Arnold pushed through when he took office?
Also, how much of the extra money spent on law enforcement was necessary, and how much was due to stuff like special bingo rooms and hot tubs for the prisoners, and big salary increases for the unions?
Coming to America.
Where did your money go? I’m gonna take a stab at this. How about wasted on healthcare and social services for millions upon millions of illegal aliens? I’m sure democrats (esp. california democrats) will come up with an alternate hypothesis though...which will be wrong of course and I for one am looking forward to seeing how they reconcile this situation without admitting the truth. Pass the popcorn please.
notice they never break out the cost of the friggin That's it! Everybody wanted to feed, educate, imprison and provide health care to countless illegals.
Sometimes the simplest explanation is the best.
/s
If Prop 8 failed, things would be perfect in CA. (sarc)
It's Budgeting 101. California politicians skipped that class.
I agree. The support burden for Illegals is killing our state. That along with the death hold of the Teacher’s union and silly pet projects like Stem Cell Research and the jerkinator’s sell out to the Global Warning clowns.
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