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Posted on 04/29/2002 11:02:00 PM PDT by Ernest_at_the_Beach
Edited on 04/13/2004 3:29:19 AM PDT by Jim Robinson. [history]
SACRAMENTO - The state of California has never seen a drop in tax revenue like this year's, and now lawmakers are girding for the mammoth task ahead: How do you tackle a deficit that equals one-fourth of what you spent last year?
(Excerpt) Read more at bayarea.com ...
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Bullsh!t. It means cutting payrolls, eliminating employees, automating, outsourcing. You can also cut expenses by liquidating properties (the expense to maintain them or manage them is high), and liquidating them also raises cash.
My point is, the services don't have to be cut, they just need to be made more efficient.
Fascist Davis and his socialist buddies in the Kali legislature are Enroning California with these spend and spend budgets.
ABORT DAVIS TO STOP HIS ENRONING OF CALIFORNIA!
I believe that is a tax raise.
Wonder how they will camoflage it!
I believe that is a tax raise. Wonder how they will camoflage it!
Some of them call it an investment!
We will see more leftist Bravo Sierra camoflage than the feeding lots on I 5 between Fresno and Bakersfield as they try to hide taxes. These socialists would rather destroy California than reduce a single expenditure for their dark side voting cult members.
SAVE CALIFORNIA FROM BANKRUPTCY! ABORT DAVIS!
Pay for Reparations
The need to please investors will shape the May Revise and the final budget itself, Peace said.
"It's our short-term borrowing needs that will force us to be more conservative, probably, than we even should be," Peace said. "The question is: How much can you borrow? And the answer is: How much the market will let you borrow."
Well, well, well.....the media is sobering up to the realities of Wall Street and the politicians are starting the explanation that this is going to be a budget with politics limited by Wall Street.
This should start to get real interesting when the budget debates start and then after the political deals are forged, Wall Street (i.e. investment bankers and rating agencies) say that the deal isn't sweet enough. Then watch the politicians squeal about those evil profit gouging investors! Then have the responsible people explain for the squealing politicians that the comments were not seriously made, just venting of frustration.
The next few months of real political crisis are going to be very interesting to watch. It will be interesting to see who will be the political "good cops" and who will be the "bad cops" in the PR game with the public and the gov and legislature try to please the investment community.
I know that our relatives living in CA despise him and wouldn't vote for him unless it was to leave the country.
Jen
A few articles in mainline fishwraps bring up the serious problems we have. For the most part the fishwraps are ignoring the serious financial problems we have due to Davis and his tax and spend buddies in the legislature.
I haven't watched the local tv news stations for about a decade. A niece who likes to torture herself watches the local tv news on a regular basis. She says that basically all of the financial problems are being ignored, and they are trying to paint Simon as an evil conservative.
This is the first time I have seen the state is preparing to sell $7.5 billion in warrants. Always before it was either bonds, or speculation about warrants.
The SF Chronicle probably doesn't know the difference.
Earlier this year, when Davis predicted a $12 billiion shortfall, more than a few calpowercrisis Freepers guffawed and rightfully asserted that it would be more like $20 billion. As usual, the cpc Freepers were right on the money and Davis was wrong.
This is interesting:
That's because state voters in 1988 locked in a formula that requires school funding adjustments each year to account for inflation and enrollment increases.
Much of the state budget (around 40%, I recall reading) is MANDATORY spending--it can't be easily reduced by lawmakers without all sorts of gyrations. Makes it pretty tough to handle a $20 billion deficit when so much of the budget is off-limits.
My guess is that Davis's budget will greatly increase taxes and fees on those living in the Red Zone of CA, while essentially leaving those living in the Blue Zone alone. Short term, those actions might salvage Davis's re-election bid, but long term, it will result in an increase in "Red Zone Flight". At some point in time, if sanity does not prevail, CA will hold nothing but "have-nots". The "haves" will have long sinced moved on to greener pastures.
I haven't checked there yet today, been busy with school and Medical things.
Anyway the chickens have sure come home to roost on Grayout Davis's barn.
( I hope I got that old saying correct).
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