California lawmakers consider $5 billion in budget cuts(Dems talk it to death)

SacBee ^ | 02/21/10 | Kevin Yamamura

[TigerLikesRooster]

California lawmakers consider $5 billion in budget cuts

kyamamura@sacbee.com

Published Sunday, Feb. 21, 2010

In the midst of an economic free fall one year ago, state lawmakers scrambled to pass a $40 billion deficit solution in an emergency session.

Democratic leaders locked down the Capitol for days at a time. A handful of Republicans believed the situation was so desperate that they voted for tax hikes.

The pace is markedly slower this time.

California faces a $19.9 billion deficit, but lawmakers and Gov. Arnold Schwarzenegger have decided against trying to solve the problem in one February fell swoop. State leaders have held few serious negotiations so far, and legislators are girding for another summer budget battle.

Democrats hope to hold off education and social service cuts until after the governor issues his revised budget in May. Lawmakers say they want to study the impacts of program cuts and hold out hope that revenue will improve. Waiting also helps Democrats delay votes that could hurt key labor and education supporters until after the June 8 primary.

"I am not willing to wade into cutting health and human services and education deeper as our first budget act in 2010," said Senate President Pro Tem Darrell Steinberg, D-Sacramento, at the Sacramento Press Club. "Let's see what kind of economic recovery we have, let's see how big the hole is, let's see what kind of revenue options we have. But we've done enough damage. And I'm not happy about it."

[Freedom_Is_Not_Free]

My apologies for implying I knew. I don’t know. I don’t know how may have refinanced. I meant it as an issue to ponder rather than stating my conviction.

No, I don’t know the number of homes refinanced since the original foreclosure crisis with the Option ARMs. I just recall the massive amount of Alt-As due to finance in 10/11 with Wave II and remember vaguely hearing it may not be as bad as Wave I because many of those had good credit and could refinance, while most of the Option ARM borrowers in Wave I had bad credit, were upside-down on loans with no chance to refinance.

No, please I don’t mean to say a lot have been refinanced. I still think most haven’t. I simply said, if there isn’t a big Wave II, I won’t be SHOCKED, because it was my impression many had refinanced. Certainly, if there is a big Wave II foreclosure crisis in residential housing, that won’t shock me either.

[IllumiNaughtyByNature]

No worries FINF. I was among the ARM holders with each property I had there. I stay current on the CA market and track each property I owned or flipped there. It's sad to see what their value has become. I am blessed to have been given the signs when it was time to get out and, thanks be to God, the signs were forced upon me and I did.

I still have lots of famiy there (none with ARMS) and friends there in the morgage industry who are wise beyond their years. There is a boom coming and its not the kind that everyone is going to like.

Please read the articles I liked, it is just the tip of the iceberg that "finanical" writers are willing to touch and write about. The ones they "talk" about and dont write about are the really, really dark, gloomy and disturbing ones. And that's just CA. TN, FL, AZ, CO and NV are all lumped into the boat but often overlooked.

FReep on my Friend and see you on the boards.

INBN