California budget watchdog (LAO) rejects $6 billion RAWs plan (revenue anticipation warrants)

Reuters on Yahoo ^ | 5/21/09 | Reuters

[NormsRevenge]

SAN FRANCISCO (Reuters) – California lawmakers should reject Gov. Arnold Schwarzenegger's plan to sell $6 billion in revenue anticipation warrants to raise cash for the state government as it faces a $21.3 billion budget gap, the state's budget watchdog office said on Thursday.

The California Legislative Analyst's office said in a report that Schwarzenegger's plan for the short-term debt would be a "terrible precedent and a poor fiscal policy," and "presents serious legal concerns."

[NormsRevenge]

I guess the ol' "I will gladly pay you for 2 WIMPYS Tuesday if you give me one FRee now." ploy still don't fly too at the LAO ....

[NormsRevenge]

Tick Tick Tick Tick..

No, that’s not the lead-in to 60 Minutos.

She’s gonna blow, Cap’n.

Giddyup.

[clee1]

It’s really simple, Kahleefornia. CUT THE FAT!

You can no longer afford it; if you ever really could.

[umgud]

Why can’t I find anybody to buy my debt. Geez, I’ll give them a great deal.

[calcowgirl]

Arnold has a whole list of bad ideas for solving the deficit. Most (except the K-14 cuts) just defer the problem and put us more in debt:

May Revision Proposes Over $21 Billion In New Budget Solutions
(In Billions)
 
• Borrow to address budget deficit with RAWs                       $5.5
• Reduce Proposition 98 spending for K-14 education                 5.3
• Borrow local property tax revenue by suspending Proposition 1A    2.0
• Increase personal income tax withholding by 10 percent            1.7
• Reduce Medi-Cal spending (various proposals)                      1.1
• Replace state funding for UC and CSU with federal stimulus money  1.0
• Sell parts of State Compensation Insurance Fund                   1.0
• Accelerate receipt of estimated tax payments                      0.6
• Reduce In-Home Supportive Services spending (various proposals)   0.5
• Use “spillover” sales tax revenues for transit bond costs         0.3
• Reduce prison population and change sentencing laws               0.3
• Reduce SSI/SSP grants to federal minimum                          0.2
• Identify additional Developmental Services savings                0.2
• Other proposed solutions                                          1.5
•   Total                                                         $21.3

[calcowgirl]

Mac Taylor Discusses the LAO’s Analysis of the 2009 May Revision
(comments to the media this morning)

http://www.lao.ca.gov/2009/webcasts/may_rev_052109/may_rev_052109.aspx

[NormsRevenge]

Thanks!

I’d say the days of Gimlets and Gimmicks is about over for ol’ StinkyMentoTown..

I am glad to see the new LAO as clear and concise as the recently retired one. I hope she is enjoying her time-off.

[Lancey Howard]

But how are California taxpayers supposed to fund embryonic stem cell and alternative fuel research and protect “endangered” species?

[GeronL]

they will not cut the fat.

they will still fund their eco projects, their gay art programs, their bureaucrats.. they will cut things that people want...

they will cut cops, prisons and stuff. They will make people beg for higher taxes and/or a federal bailout

[clee1]

Then the people of CA will have to suffer until they take the power back into their own hands and get rid of these “entitled” career politicians.

Revolution? Anyone? Buehler?

[GeronL]

the people of Cauliflornia have always had the power to vote these idiots and they didn’t, probably won’t

[patton]

Hmmm..no cuts to the sea otter fund, I see...