Posted on 11/22/2009 8:33:32 PM PST by Steelfish
California Budget's Going To Be Dreadful
Until long-term structural issues are fixed, there is no way legislators can produce an honest spending plan so the state lives within its means.
George Skelton Capitol Journal November 23, 2009
The Capitol's budget oracle projects $20.7 billion in new red ink for the next 19 months. Here's my projection: More punting, "kicking the can down the alley" and numbers-rigging.
Hope we're both wrong. Hope there's an economic miracle or political heroism, which would require sacrifice to the demagogues. But, based on history and facts, that's too much to hope for.
Here's how nonpartisan Legislative Analyst Mac Taylor gently put it last week in calculating the latest general fund deficit: "Addressing this large shortfall will require painful choices, on top of the difficult choices the Legislature made earlier this year."
But, he added, "It is unlikely that the Legislature can address all of the state's massive, ongoing budget problems with permanent, ongoing solutions in the next year."
I don't have to be so diplomatic. I'll just say that there's no way these people can produce an honest budget that forces Sacramento "to live within its means," as Gov. Arnold Schwarzenegger persistently preaches, while consistently being one of the first to sin.
(Excerpt) Read more at latimes.com ...
Gee, all that extra TARP money laying around....
There is a disaster looming in municipal bonds. States are being overwhelmed with high salaries and benefits from their unionized work force, high pension costs, unfunded mandates from Washington, and growing debt service. Eventually, the money will run out, and they can’t keep raising taxes. The states will have to make the decision on who isn’t going to be paid. Do you think they will select their unionized work force, the poor, or municipal bond holders?
Fees.... on anything and everything that is tangible, intangible, that stands still, that moves, what is on the ground and what is underground, and who knows on what is both visible and invisible. And oh, taxes on the oil companies.
Which of course will mean even lower tax receipts, and higher deficits....with renewed calls for more taxes.
Until the whole damn thing collapses under its own weight.
Can't wait for the last part, then things might start getting better...
*Whine*
*cry*
How, oh how can we prop up our Socialist state? We can’t ask hogs living off the system to take less and a stupid law is preventing us from raising taxes.
*Whine*
*cry*
*Whine*
No George Skelton column is complete without an attack on Prop 13.
There will be massive chaos in 2010. As long as no one can bring up the illegals issue and make massive cutbacks, mexifornia is dead. Every apartment bldg on my block have “for Rent” signs here in L.A. 2 yrs ago, there was a waiting list.
California owes me a $1,000 of my own money they confiscated from my bank account. I’ve been trying a good three years to get it back, and they keep dragging their feet.
Short of hiring an attorney (and blowing that which is left), I’m pretty much stuck until that state picks itself out of its own shambles.
It’s not even the money so much now as the principle of it.
"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus
The reality check for those guys must be really frightening.
They thought Los Gringos had a never ending well.
Now it's dry, and they're staring straight into it.
Skelton advocates an increase in the annual car tax. I wonder if he would be as happy about a newspaper, internet, radio, and tv tax?
Even supposed conservates are going wobbly. Tom Campbell, running for governor, is supporting reduced class size in schools for the mom and teacher vote. But studies show that the benefits of smaller classes only last until students meet the real world of larger classes in middle school and high school, much less college and the work place.
This costs big bucks and I don’t notice Campbell proposing new taxes.
Uh... I'll take "Municipal Bond Holders" for $20 billion, Alex.
Argentina with more crime and even more corruption - which is hard to imagine.
I dont know about the illegals but I see the same volume of them at the Home Depot on Sunset. Funny that doesn’t happen at the Home Depot on Van Nuys.
I bet illegals all still have food stamps credit cards, welfare, free housing, healthcare, soc security, and many many other benefits.
I am sick in FL because I see a girl in a decent part of town going out at night to walk the streets. I never saw that under Bush and rarely saw it period. I know that is common in LA. Unemployment is now about 11.2% in FL. It has never been that high.
The States just have to accept that we are not in boom times anymore and won’t return to that place for a long time. They grew the government and services too big just like the Federal government. They are going to have to cut back to the basics and cut off all else until they can afford what they have. They should look at what they had in services, etc. in the early 60s and go back to that point. California has built a federal size government and operation.
I am glad I don’t live in California through this. The State government is nuts.
Until the whole damn thing collapses under its own weight.
Can't wait for the last part, then things might start getting better...
I'm with you there ! I just might move back to where I was raised after that collapse.
Nam Vet
last week cal sold muni general obligation bonds at 4% interest rate.
Now who is buying cal bonds at 4%?
t
100K/yr union pensions are hard to keep funded, so better close a few parks instead.
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