Posted on 05/12/2012 1:01:42 PM PDT by Steelfish
California Deficit Has Soared To $16 Billion, Gov. Jerry Brown Says May 12, 2012
Gov. Jerry Brown announced on Saturday that the state's deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.
The bigger deficit is a significant setback for California, which has struggled to turn the page on a devastating budget crisis. Brown, who announced the deficit on YouTube, is expected to outline his full budget proposal on Monday in Sacramento.
"This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year," Brown said in the video.
Lawmakers and others were hoping that a rebounding economy would help the state avoid steep cuts to social services. But revenue in April, the most important month of the year for income taxes, fell far short of expectations, leading to a shortfall of at least $3 billion in the current fiscal year.
The state has also spent $2.1 billion more than expected, according to the controller, further worsening California's financial health.
Advocates involved in budget discussions say they expect deeper cuts to social services than Brown originally proposed in January. Union officials are also in negotiations with administration officials about ways to reduce state payroll costs, an issue that wasn't on the table earlier this year.
(Excerpt) Read more at latimesblogs.latimes.com ...
“I have an idea buy a high speed train......”
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Now THAT’s the ticket!
These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of Cong Joe Baca. Between 2000 and 2009, Hispanic populations increased; but Hispanic home ownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the US Census Bureau.
Over that same period, homeownership nationally grew by an enemic 8%. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtainedg costly non-prime mortgages---soaring to a shocking 169%, (Research provided by Wall Street Journal)
The subprime mortgage bank fraud network was spearheaded by Cong Joe Baca (D-Cali 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.
Baca used his the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home. The entities engaged in conspiracies to collude with industry and community groups to increase mortgage lending to Latinos--knowing full well forged fraudulent identities and fasified mortgage applications were being used.
Mortgage lenders---lured by huge profits---eagerly provided funding to Baca's group, and fielded an army to bestow with mortgage loans on unquaified lations which were destined for default.
In years past, minority borrowers seeking loans were often denied because banks and mortgage companies with sound business practices were reluctant to lend within particular low-income geographical areas. This reasonable business practice was mischaracterized as "racialist" as a way to intimidate lenders.
However, the soundness of the practice resonated as the financial devastation the housing bubble wreaked hurt the nation's economy. Taxpayers were saddled with the bills as defaults reached stratospheric heights. Cong Baca's modus operandi and combined efforts to intimidate, to open the mortgage pipeline to unqualified Latinos proved highly successful.
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A close look at the network of organizations pushing for increased mortgage lending to unquaified buyers reveals a disturbing picture.
<><> HOGAR---the initiative to promote Latino homeownership---was created by the Congressional Hispanic Caucus Institute Inc., a non-profit entity founded and run by leaders of the Congressional Hispanic Caucus along with corporate and nonprofit representatives.
<><>Subprime-industry executives got in early, as advisers to "HOGAR" bankrolled more than $2 million of HOGAR's flawed research (NOTE so-called "research money" could have been laundered into Baca-related entities).
<><>Lawmakers and latino advocacy groups pushed hard to weaken credit criteria that inexorably led to the subprime debacle.
<><>Members of the Congressional Hispanic Caucus, who received donations from the lending industry, stood idly by as their constituents moved into new homes bought with fraudulent documents and fasified mortgage apps. The lawmen had undermined US law by pushing for eased lending standards, which led to massive foreclosures, tax burdens, and UNTOLD DAMAGE TO THE US economy.
The Congressional Hispanic Institute, Inc, created by Baca's Congressional Hispanic Caucus created "HOGAR" in 2003 to work with industry and community groups to increase mortgage lending to unqualified Latinos. At that time, Baca hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population. "HOGAR" called the figure "alarming," and said a concerted effort was required to ensure that "by the end of the decade Latinos will share equally in the American Dream of home ownership." Most of the "dreamers" were citizens of Third World countries who had violated US borders.
Predictably, HOGAR's backers included mortgage companies that ran into big trouble: Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts; Countrywide Financial Corp., sold to Bank of America Corp.; Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by unpaid Latino mortgages.
HOGAR's ties to the subprime industry were substantial. A Washington Mutual Bank vice president served as chairman of its advisory committee. Bribery and self-dealing was rampant. Companies that donated $150,000 to Cong Baca got the right to place a research fellow who would conduct HOGAR's fraudulent studies, which were used by industry lobbyists. For donations to Baca of $100,000 a year, HOGAR offered to provide optimistic news releases from Baca's Hispanic Caucus promoting a lender's commercial products for the Latino market, a shocking example of bribery well-substantitated by the group's literature.
"HOGAR" colluded with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts. The study found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's coterie. HOGAR recommended further easing of down-payment and underwriting standards. However, after the debacle, representatives for HOGAR declined repeated requests for comment following the economic havoc their activities precipitated.
con't
The answer, of course, is more taxes and regulations! Seriously. This is a state that recently enacted a law mandating condom use in adult movies, a law requiring the hiring of compliance inspectors to enforce it.
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Cong Baca has received numerous honors for his "public service." Recent awards include:
1) the US Hispanic Chamber of Commerce President's Achievement Award,
2) the National Farmers Union Presidential Award for Leadership,
3) the Walter Kaitz Foundation Diversity Advocate Award,
4) the U.S. Department of Agriculture Coalition of Minority Employees Award of Excellence.
5) Latino Leaders Magazine lists Baca as one of the top 100 most influential Hispanic leaders in America,
6) Baca ranked twelfth on the list of the top 42 Hispanics on the "Who's Hot" list,
7) the Joe Baca Senior Field at the Empire Center,Fontana; Joe Baca Field at the Rialto Boys and Girls Club.
8) Colton Joint Unified School District broke ground on the "Joe Baca Middle School" at 1640 S. Lilac Avenue in Rialto, Cali, to open for the 2012-2013 school year.
BACA District Office
201 North "E" Street---Suite 102
San Bernardino, CA 92401
Tele (909) 885-BACA (2222)
Fax: (909) 888-5959
Washington, D.C. Office
2366 Rayburn House Off. Bldg
Washington, D.C. 20515-0542
Tele (202) 225-6161
Fax: (202) 225-8671
REFERENCE----BACA CASHES IN PUBLIC SERVICE IS SO-O-O-O-O LUCRATIVE
<><>In 2005, mortgage banks and finance companies gave Baca at least $2.3 million dollars.
<><>In October 2008, a charitable foundation set up by Baca received $25,000 from AmeriDream Inc, a so-called " nonprofit" housing program.
<><> AmeriDream's activities included providing down-payment money to unqualified buyers, a cost that was covered by home builders in the form of "donations" to the nonprofit. (NOTE Such loans--known as bridge loans--are considered illegal.) New housing legislation circa 2009 outlawed the program.
<><> Undeterred, Baca then co-sponsored a bill that would allow AmeriDream and similar nonprofits to resume arranging illegal seller-financed down-payment assistance to low-income latino FHA borrowers. Such seller-financed loans to latinos comprise one-third of the loans backed by the FHA, and have defaulted at nearly triple the rate of other FHA-insured loans, according to FHA's William Glavin.
In a self-serving news release, the latino mortgage facilitator----- AmeriDream---- said its "donation" to The Joe Baca Foundation was intended to "fund the purchase of gear for firefighters" in Baca's district. Local news reports say the Joe Baca Foundation gave away a measly $36,000 in scholarships in 2009.
Cong Baca's office declined to comment on the AmeriDream contribution. Baca remains resolutely opposed to strict lending rules (especially since taxpayers are saddled with the billions in mortgage defaults). "We need to keep credit easily accessible to our minority communities," Baca said in a statement released by his office.
IRS records indicate that Baca's son, Joe Baca Jr, pockets an annual salary of $51,800 as executive director of The Joe Baca Foundation, which is run out of the congressman's Caifornia home. Joe Baca Jr. insisted he takes half of the salary listed by the IRS. No word on the amount Baca Jr pays taxes on.
The Office of Congressional Ethics, a quasi-independent House oversight group, twice investigated lawmakers’ "charities," but took no action, in part because the House granted waivers exempting the congressmen from prohibitions against soliciting donations from companies with business before their committees.
Lawmakers defend the donations, saying they have no influence on the politicians’ positions on legislation or policy. They also say that they typically do not serve on the charities’ governing boards or solicit contributions themselves. But some current and former lawmakers, as well as ethics officials on Capitol Hill, find the charitable donations troubling, calling them one of the last major unregulated fronts in the “pay to play” culture in Washington.
The donations typically far exceed what companies are permitted to give to candidates in campaign contributions.The donations by corporations and lobbyists to politicians’favorite causes can create expectations that the lawmakers will return the favor, said Mickey Edwards, an Oklahoma Republican who served 16 years in the House. “Almost all of these foundations, they were set up for a good purpose,” Edwards said. “But as soon as you take a donation, it creates a more than just an appearance problem for the member of Congress. It is a real conflict.”
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WARNINGS IGNORED Aracely Panameno, director of Latino affairs for the Center for Responsible Lending, an advocacy group, observed, "We saw what we refer to as reverse red-lining," says. "Lenders were seeking out Latino borrowers for loans," she says. Ms. Panameno says that during the height of the housing boom she sought to present Cong Baca's Hispanic Caucus with data showing how many Latinos were being steered into risky and expensive subprime loans. Baca apparently directed HOGAR to decline her requests, Panameno says.
They need a $16 billion tax increase in California. LOL.
Reports from a variety of media reveal California state employees are spiking their pensions to stratospheric levels, leaving nothing for their brother employees. Sorry, can't blame Wall Street for this one. In a laudable instance of the mainstream media doing its job, the Los Angeles Times, the Sacramento Bee, Bloomberg News and City Journal have all exposed "pension spiking" by California public employees.
Basically, they manipulate rigid unionized pay and promotion systems to raise their pensions well above what they earned during their working years.
The Los Angeles Times on Saturday pieced together tough-to-get data from Kern and Ventura counties and found a fiscal horror story: In Kern, 77% of public employees with pensions greater than $100,000 actually get more than they did during their working lives. In Ventura, the figure is 84%. Kern has a $761 million pension shortfall, in part due to the practice.
Both the practice and the lack of transparency are signs of a rotten system. Bigger counties like San Diego and Los Angeles also permit pension spiking. But L.A. asked the Times to fork over $63,000 for "research" or they won't reveal a thing. Seems it doesn't bother these bureaucrats to pay out the spiked cash, but knowing how much it is is too much of a bother. (Excerpt) Read more at news.investors.com ...
FRreeper grampadave posted: CBS Evening News reported 3/7/12---San Jose, CA has three spanking new libraties and a mega- police station that are vacant and unused b/c of lack of funds----govt worker pensions are eating up the city budget. Govt workers get 90% of their salaries as pensions when they retire at the age of 50 or so---probably into a 2nd low-show six- figure govt job.
Vallejo, the city that went bankrupt closed a new fire station and for awhile had the community of Benicia on call for fires and police action. Then, things seemed to turn around, the fire station was reopened, cops and firemen were hired, and we started hearing about the Vallejo miracle.Most of us know that the age of miracles died about 2000 years ago.
So how did Vallejo liberals running the same ponzi games with union thug voters turn Vallejo around? Apparently, the new regime got promises from the thugs in DC and got federal grants to pay their bills. Eventually the evil bond holders/creditors will be knocking at the doors asking for money that will not be there when those grants run out.Vallejo was in vote-crazed Obama's pants in the last election, and they will be even more so in the upcoming election.......there was no Vallejo Miracle just more of the same criminal con game.
Paraphrasing Saint Augustine “Without a system of justice – what is govt but a marauding band of thieves.”
"Showdown at the old Sacto Asylum"---get the popcorn FReeps!
Scott Walker in Wi. enjoying a cakewalk compared to MoonBeams Ca. high wire juggling act.
Ha-ha. Our moron, Democrat governor's smarter than yours!
They just need to double down on what has made them successful. Increase taxes and drive more productive citizens out. Increase welfare and other subsidies for illegals and those unwilling to work. Spend more on schools, children and prisoners. Increase regulations on business. Increase payments and benefits for public workers and pay lifetime pensions and medical care for public employees that no longer work. They’ll balance the budget in no time.
“But, guess what - they're not.”
Where are all the celebrity and sports greedheads?
You'd think they would take up a little collection amongst themselves to help the state out.
Oh, wait, what was I thinking! They spend other people's money and horde theirs.
... keep driving out the productive people ...
You had it right the first time. Once California drives them out they're OUR productive people. Fairly quickly California will be left with no one but parasites.
Wisconsin has a surplus and is putting money in its “rainy day fund”. We had a huge defecit when Walker was inaugurated. Not only did he pay off our debt (the previous Gov. had borrowed money from MN), Walker finished the year with a surplus.
Ha! Ha! Ha!
Proof positive that libs buy into their own circle jerk propaganda. Any half wit with their eyes half open, can see that there's no economic rebound occurring.
Great info, Liz. First time I heard of it.
Dear California: you elect stupid people to government jobs (i.e. Brown, Boxer, Pelosi, Feinstein, etc.....). Since you know that they’re stupid to begin with, then you are OK with paying people to be stupid. If you were electing them to be HEAD CHIEF AND BOTTLEWASHER at the our gang clubhouse, well, that’s a non-paying job. Doesn’t cost anything. But electing stupid people to be in charge of the taxpayer’s hard-earned dollars? Oh my........
Jerry Brown Is too Incompetent to fix California.
California Voters are too stupid to elect someone who can...
California will implode.
Riots, and Chaos comming soon.
For the sake of the rest of the nation, I hope California starts to improve. I feel sorry for states like Idaho, Arizona, New Mexico, and Montana that are being filled with Californians.
Hopefully my kid, her hubby and the one in the oven will vote with their feet soon.
Good luck with that. There is NO 'rat who wants to provide leadership on paying above the legal minimum, even as a "positive" example. Bunch of selfish hypocrites.
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