Posted on 07/08/2009 9:22:26 AM PDT by BAW
Despite plunging tax revenues, Wall Street's unwillingness to loan the state money and billions of dollars worth of IOUs hitting mailboxes, California's leaders are displaying a seeming lack of urgency to close the state's $26.3 billion deficit.
Gov. Arnold Schwarzenegger and legislative leaders blew past a supposedly ironclad June 30 deadline to pass a new budget, and no one can say with any precision when the new moment of truth is, if there is one. Each side seems to be waiting for the other to blink. The question now hovering over the impasse: How long can this last?
Based on projections of the state's financial outlook by Controller John Chiang, the answer may be several more weeks, if not months. That's when he projects the state will finally run short of cash to make legally mandated payments to schools and bondholders; the crunch would have come even sooner had Chiang's office last week not resorted to IOUs to lower-priority creditors like vendors.
An extended delay would come at a huge cost to California's prestige, possibly sending its credit rating into junk-bond territory and driving an untold number of companies that rely on state money out of business.
"We're in deep trouble in September, if not sooner," Chiang said in an interview Tuesday.
(Excerpt) Read more at mercurynews.com ...
The budget talks are fascinating to watch because the voters have turned rabidly conservative. In May 2009, by a 2 to 1 margin, the voters rejected additional tax increases and told Sacramento to stuff it. From a liberal state like CA, this amounts to the beginning of a rebellion.
No, both sides are seemingly still waiting on Barry to bail their collective arses out....hence the continued impasse.
Spending money is all they know how to do.
Vendors to the state of CA are out of their minds if they accept these IOUs as payment. They need to cut off all service to the state and demand payment in cash.
“No, both sides are seemingly still waiting on Barry to bail their collective arses out....hence the continued impasse.”
Bingo. However, if ObaMugabe bails out Ca, he will take the hit, not Ca pols.
VOTE THEM OUT in disgrace.
Here’s the quandry: Will the Cal. voters actually go through with the “voting them out” bit?
I was at two social functions over the last week and that was the consensus of all present (both RATs and Republicans). The mood is nasty and the anger is palpable for all politicians at the State level and in DC.
The arrogance of these corrupt liars in elected office has made them deaf and dumb. The anger is real. I pray that Sarah Palin leads the tsunami very soon.
You can guess which way the illegals will vote.
Don’t be fooled by our Congress. Has anyone ever really wondered why they were so willing to let a statement out “We haven’t read the bill”? They wrote the bill. It’s common sense. What people don’t know is they figure we will never know that most of this garbage has already been written into the stimlus which they voted for. Why would they already be installing digital meters for energy? Why?
VOTE THEM ALL OUT. I also believe it’s time to give a few of them the Bernie Madoff plan of 150 years in jail.
Did any of you know that no health care for those past 40 years is already in the stimulus bill? Bet ya didn’t. This is the bill Congress as a whole crammed through without so much as a backward glance
Get rid of them.
Elect Sarah Palin and people like her.
The CA legislature is frozen in place because the rats can’t bring themselves to do the right thing which is to cut their constituents off the tit.
They’ve spent years building an invincible power base of welfare mooches, illegal aliens and their ethnic enablers, eco-nuts and other assorted leeches on the body politic.
What their constituents want is more taxes (paid by someone else - not them). Only the small cadre of Republicans and the governor stand in their way.
Checkmate...the rats won’t make a move until the ship is on the bottom.
They will wander over to the state that pays the next highest dollars to them! Many wandered to CA as it pays very well—great benes. When and if this starts to disappear, watch them leave.
No offense, but if you understood how the Cal Pols have totally rigged the system to their advantage, you wouldn’t ask that question.....but the answer is “No.”
1. Collapse
2. Die
3. Implode
4. Default
5. Explode
6. Meltdown
7. Crash
8. Go bankrupt,
And yet it's still there.
Someone ping me when it finally happens.
No, I don’t live in Cali, but I do however, appreciate the information and the truth.
California is issuing IOUs because it can’t pay its bills in cash, and he has the gall to say they are going to be in trouble in September?
Alice in Wonderland. We are in the twighlight zone. California was in trouble a year ago and even more. The stool hit the fan long ago, yet the legislative Neros are fiddling while Sacramento burns.
THROW THEM ALL OUT. START FROM SCRATCH with a PART TIME LEGISLATURE.
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