Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California faces its day of fiscal reckoning
AP ^ | May 22, 2009 | Judy Lin, Tom Verdin and Samantha Young

Posted on 05/22/2009 6:47:58 PM PDT by americanophile

SACRAMENTO, Calif. (AP) — The day of reckoning that California has been warned about for years has arrived. The longest recession in generations and the defeat this week of a package of budget-balancing ballot measures are expected to lead to state spending cuts so deep and so painful that they could rewrite the social contract between California and its citizens. They could also force a fundamental rethinking of the proper role of government in the Golden State. "The voters are getting what they asked for, but I'm not sure at the end of the day they're going to like what they asked for," said Jim Earp, executive director of the California Alliance for Jobs, which represents the hard-hit construction industry. "I think we've crossed a threshold in many ways." California is looking at a budget deficit projected at more than $24 billion when the new fiscal year starts in July. That is more than one-quarter of the state's general fund. This week, voters said they no longer want the Legislature to balance budgets with higher taxes, complicated transfer schemes or borrowing that pushes California's financial problems off into the distant future. In light of that, Republican Gov. Arnold Schwarzenegger has made it clear he intends to close the gap almost entirely through drastic spending cuts. The governor's cutbacks could include ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, shortening the school year by seven days, laying off thousands of state workers and teachers, slashing money for state parks and releasing thousands of prisoners before their sentences are finished.

(Excerpt) Read more at google.com ...


TOPICS: Government; Politics/Elections; US: California
KEYWORDS: budget; calbudget; california; cuts; defecit
Personally, I don't care if they turn the lights off...the spending must stop.
1 posted on 05/22/2009 6:47:58 PM PDT by americanophile
[ Post Reply | Private Reply | View Replies]

To: americanophile
"...ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, shortening the school year by seven days, laying off thousands of state workers and teachers, slashing money for state parks and releasing thousands of prisoners before their sentences are finished."

BUT THE PUBLIC EMPOLYEE UNIONS ARE FAT AND HAPPY!

2 posted on 05/22/2009 6:50:42 PM PDT by americanophile
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile
"..releasing thousands of prisoners before their sentences are finished."

Oh THAT's a grand idea.

The PONZI scheme has popped and now it's time to pick up the pieces.

3 posted on 05/22/2009 6:54:24 PM PDT by evad (Obama's Socialism is a giant PONZI scheme)
[ Post Reply | Private Reply | To 2 | View Replies]

To: americanophile

Its all BS. They do this all the time and nothing will be cut. Any laid off workers will not only not have to work, they will get all back pay. Taxes will be raised in the form of “fees” and other states that lived within their means will be bailing out CA when Obama announces the bailout “for the children”.


4 posted on 05/22/2009 6:56:04 PM PDT by icwhatudo
[ Post Reply | Private Reply | To 2 | View Replies]

To: americanophile
Oh Schwarzenegger my heart bleeds for you. You pampas a@@ just don't get it. Make all the threats like cutting the poor off. Stupid immature nitwit cannot act like a real man and take the cuts where they should be placed. What a nitwit. An King Obama look alike.
5 posted on 05/22/2009 6:58:17 PM PDT by Logical me (Oh, well!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile

California Liberal’s chickens have come home to roost to quote Reverend Wright the Socialist wonder. Hey, Arnold cut all state funds going to illegals via schools, hospital fees, etc.; audit the state government and cut all the duplicate garbage, find the graft and fraud. Next, the worthless California Assembly should be part time with a pay cut and loss of their benefits. Take their cars and per diem away too. Now, those are a few painful cuts that the taxpayers would support.


6 posted on 05/22/2009 7:02:14 PM PDT by ExTexasRedhead
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile
cutbacks could include ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, shortening the school year by seven days, laying off thousands of state workers and teachers, slashing money for state parks and releasing thousands of prisoners before their sentences are finished.
And yet missing from all of that is ending MediCal for illegals, canceling the $50 billion high speed train, ending corporate welfare for biotech firms developing commercial stem cell products, reducing teachers' salaries from 35% above the national average, or reforming the tax code to make California more attractive for businesses.
 
7 posted on 05/22/2009 7:05:41 PM PDT by counterpunch (In this present crisis, government is not the solution to our problem. Government is the problem.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile
The way I see it, there's a once in a lifetime opportunity to shrink California's government down to the bone. It can no longer afford the indulgent gold-plated welfare state the Democrats built. The tax base is no longer there to support it.

"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

8 posted on 05/22/2009 7:06:07 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile

The defeat of those measures says that the Californians able to take care of themselves don’t want their money sucked away and handed to those that can’t. There are shades of gray here, and some of those who “can’t” are not responsible for the mess they’re in. I’m not without mercy. Their messes are survivable and valuable learning experiences.

Californians are saying to let those that still have resources lead the rest of the state out of the downturn. Not a bad idea. The business class is likely to spend a lot of their money expanding their businesses. The worker class is likely to spend the handouts they receive in less stimulative ways.


9 posted on 05/22/2009 7:10:23 PM PDT by frposty (I'm a simpleton)
[ Post Reply | Private Reply | To 2 | View Replies]

To: americanophile
The governor's cutbacks could include ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, shortening the school year by seven days, laying off thousands of state workers and teachers, slashing money for state parks and releasing thousands of prisoners before their sentences are finished.

When I start seeing stuff like "the state government has 'borrowed' so much money from local governments that cites like San Jose, the self-styled 'Capital of Silicon Valley', have had to lay off their entire staff of Code Enforcement Officers, the much-maligned quasi-judicial city employees empowered to cite city residents for parking their own cars in their own driveways for more than 72 hours...", THEN I might start to ponder the possibility that they're starting to cut non-essential 'services'.

10 posted on 05/22/2009 7:35:31 PM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile

California will “rewrite its social contract with its citizens”? More like with its non-citizens!


11 posted on 05/22/2009 8:07:25 PM PDT by blue state conservative
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile
Most of the suggestions in here will be on the demand side (cutting spending) but I have a suggestion on the supply side: a five-year hold on all state regulatory interference with energy projects. If Californians had 5 years to drill for oil, build nuclear plants, install solar cells in any sunny place they wanted, plus develop geothermal and other odd sources, who knows how much of the state's departed industry - and hence its tax base - might be restored?
12 posted on 05/22/2009 8:09:48 PM PDT by BlazingArizona
[ Post Reply | Private Reply | To 1 | View Replies]

To: americanophile

This will be an interesting event-—Ca. legislatures lack the spines to make the cuts. To expect them now to pony up is a fantasy. Expect lots of pig squealing sounds from the halls of the Sacto Capitol. What a show it will be!


13 posted on 05/22/2009 8:29:21 PM PDT by tflabo (Truth or Tyranny)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ExTexasRedhead

Just look at all these state agencies. I bet they could cut a few and save a few bucks.

http://www.ca.gov/About/Government/agencyindex.html


14 posted on 05/22/2009 8:33:52 PM PDT by sheana
[ Post Reply | Private Reply | To 6 | View Replies]

To: americanophile
From the article: "... could rewrite the social contract between California and its citizens. "

I think I see the problem right there.

There is no social contract between California and its citizens. The contract, called a consitution, is a contract adopted by the citizens for their own benefit. There is no contract between me and this government.

At every turn, I expect this government to steal my money and infringe my rights. The less there is of this government, the better I will like it.

I've been waiting years for the spin, crash, and burn. I just hope my popcorn hasn't become stale.

15 posted on 05/23/2009 12:12:14 PM PDT by William Tell
[ Post Reply | Private Reply | To 1 | View Replies]

To: William Tell

...right on!


16 posted on 05/23/2009 1:44:29 PM PDT by americanophile
[ Post Reply | Private Reply | To 15 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson