Posted on 05/01/2009 7:57:47 AM PDT by SmithL
Prospects are rapidly diminishing for the five ballot measures that Gov. Arnold Schwarzenegger and legislative leaders say they need to keep the state budget from drowning in red ink.
So, one might ask, what's Plan B?
Rejection of three measures (Propositions 1C, 1D and 1E) would have a direct impact totaling nearly $6 billion on the 2009-10 budget, which was supposedly balanced by Schwarzenegger and legislators in February.
Legislative Analyst Mac Taylor has already proclaimed that the 2009-10 plan is $8 billion out of whack, so rejection of those three measures would create a $14 billion hole. But wait, there's still more bad news.
Taylor's projection assumes that the state's economy will begin picking up in 2010, but the most recent state economic forecasts don't support that assumption.
"There is no measure of economic strength that provides even a glimmer of hope for California's economy in the near term, none," says William Watkins of the University of California, Santa Barbara, Economic Forecast Project. Watkins sees unemployment, now over 11 percent, rising to near 14 percent next year as well as at least two more years of economic decline.
State income tax receipts, a critical measure of revenues, appear to be falling short, as well. Through Wednesday, income taxes for the fiscal year were a whopping $8 billion under what the state had received by that time in 2008.
Another measure: The California New Car Dealers Association reported new car sales this year running 43 percent under 2008, adding that sales for 2009 could fall below 1 million autos, less than half of sales three years ago.
The economy is in free fall, and if Schwarzenegger and legislators lose on May 19, they could face another $20-plus billion deficit in 2009-10, beginning with a severe cash crunch in July
(Excerpt) Read more at sacbee.com ...
Let the whole welfare state collapse of its own weight. See what happens. Why shouldn’t it happen in CA first? They are the trendsetters, right?
Liberals want to do to the United States, what they did to the state of California.
Plan B is the same as always in California. The vote is taken to court where ‘judges’ (3 fruits, a lesbian, two La Raza illegals and another fag) declare the vote to have been faulty and unconstitutional.
Well, see, there's the problem. Greed.
Too many greedy people not paying enough of their earned money to the state.
Evil greedy Republicans, no doubt, who refuse to pay their fair share.
More taxes will solve everything
unemployment, now over 11 percent, rising to near 14 percent next year as well as at least two more years of economic decline.
If that is not 3rd world status here today, then I don't know what is...
great job!
California becomes the first state to be governed by Sharia law, by the time the beheadings are over with the available monies will match California’s new population.
(1) Cut the Welfare State way back. Slash benefits enough that the welfare class decides to move elsewhere.
(2) Get energetic about handing over illegal immigrants who try to access government benefits
Want a balance budget, cut all salaries by 1/3 and take away all quirks. Balanced in one year.
We sure know what your plan is, statist. Grab every tax dollar you can.
“So, one might ask, what’s Plan B? “
Raise taxes because everyone knows that raises revenue. /sarc
Doesn't B stand for Bankruptcy?
I see these propositions being advertised on Dodger games. My first thought was: “Why bother? The judges will just throw it out if they don’t like your vote.”
“Ask the Governor” Webchat
Tuesday, 04/21/2009BILL BRADLEY: We actually have two more questions directly related to the budget crisis. “Matt Cruisin’”—this all via Twitter—“Matt Cruisin’” asked: “What is the status of the propositions in terms of their ability to pass and which do you think are the most important to pass?”
And then “Brown Lee Flack”—we have to love all these handles—says: “What will you do if the May 19th budget measures fail?”
GOVERNOR SCHWARZENEGGER: Well, I think it’s important to know that the more people recognize and know more about the reforms and about the measures that are on the May 19th ballot, the more they are in favor of it. I think that the original kind of reaction of the people was negative. It was kind of, don’t make me go out again and vote. You guys are all screwed up, up there in Sacramento, you can’t get your act together. I want to see first action from you, then you will see action from me. And these are the kind of comments I heard when I walked around on the street.
Then, as we went out and had town hall meetings, and I saw the endorsements coming in from law enforcement and from the education community and from everyone, from business leaders and labor leaders and all of those things, all of a sudden they now have become more aware of what will happen if they don’t pass; that it will be disastrous for education and it will be terrible for the budget, there will be another $14 billion in the hole, and we will never get the reforms every again, the reforms that we have now on the ballot. So I think that more and more people are for it, and you see the numbers are changing in favor of the initiatives, which is very important.
And I think that I always say I’m programmed for being successful with initiatives, or with whatever I do. So I don’t go and start thinking, during the campaign, what do we do if we lose, because that’s kind of like half of the mind then is on winning, and half of the—one foot is on losing and one foot is on winning, and trying to back yourself up, if this doesn’t work then this works.
No. If you really are passionate about something—-and I’m really passionate about those initiatives—-then you have to be 100 percent invested in this winning. And I will travel up and down the state and I will talk to as many groups as possible, and to as many people that maybe had originally a negative opinion about all of this, or about special elections in general, and talk to them and let them know why this is important, to save the state from going off the cliff. And why it’s also important for education and why it is important for health care and for keeping the prisoners locked up and helping with law enforcement funding and all of those kind of things. It is absolutely necessary. So I will do everything that I can to make them win and bring as many people to the table.
And that was one of the mistakes that I’ve made in 2005.
>State income tax receipts, a critical measure of revenues, appear to be falling short, as well.
Good golly. When too many of your population is sucking the teat of welfare that stuff happens.
Stop feeding and nursing the bloodsuckers and maybe they will get a job or go home.
They will “borrow” from the Counties - 8% of property tax revenues. (Counties only get around 20% now)They have figured out a way to do that twice in succession - even though they are supposed to be constrained to only once in a ten year period. They will also reduce the amount of gas tax going to the Counties and add a “gas fee” onsimple majority vote. At least, this is what I have been told.
Counties look toward more deferrals of payments for social service and mental health services, loss of the Williamson Act and riral COPS fundings, more reductions in services and payments to the poor and elderly.
But you can bet your bippy we will roar ahead on cap and trade.
Bring on that stimulus plan money.
Many unions have come out against these props.
After the McCain debacle it’s nice to have something on the ballot like this. I’m practically drooling as I think about voting these measures down.
Never happen!
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