California to Begin Issuing IOUs on Feb 1

Discussion in 'Economics' started by capmac, Jan 16, 2009.

  1. 377OHMS

    377OHMS

    Hear! Hear!

    Data shows that 144,000 people left California last month. That is the best news I have heard in years. We need a good earthquake to clear them out faster.
     
    #31     Jan 18, 2009
  2. capmac

    capmac

    California Budget Crisis About to Affect People’s Everyday Lives

    January 21, 2009

    California’s creditors have cut the state off. The borrow-and-spend policy may be nearing an end, and with it California’s high standard of living.

    By Robert Morley

    Ten days remain before California will begin defaulting on its obligations.

    California is in crisis. Lawmakers can’t agree on how to balance the budget. And the truth is that there is no easy solution. Painful decisions will have to be made. And no matter what politicians decide, it is clear that the good times are over for the Golden State.

    “Our state faces the most challenging budget in its history,” Gov. Arnold Schwarzenegger warned. “The combined effect of our structural deficit and the dramatic decline in revenues … have produced a two-year deficit of … nearly half of our projected 2009-2010 revenues” (emphasis mine throughout).

    By some estimates, California’s current expenditures through fiscal year 2010 will reach $145 billion. And state revenue will only be around $100 billion—a massive $45 billion shortfall. And that is if the economy doesn’t deteriorate more than expected, and if the state doesn’t get hit with another wave of unprecedented lightning storms, fires, drought, or other natural disasters.

    Lawmakers are at loggerheads over how the state is to cover expenses.

    The state is spending so much money that Governor Schwarzenegger could fire every single California civil servant and still not come close to balancing the budget! Even if he also fired the other 149,000 legislative aides and people who work for the state’s courts or university systems (people not directly under the state’s control), he still couldn’t eliminate the deficit.

    http://www.thetrumpet.com/index.php?q=5868.4229.0.0
     
    #32     Jan 23, 2009
  3. capmac

    capmac

    Counties brace for missed payments from state

    Tuesday, February 10, 2009

    (02-09) 19:57 PST -- California's budget woes will sweep over the state's 58 counties this week when they get promises instead of checks for $89 million in anticipated payments for welfare, food stamps and other services.

    The move will be a devastating blow to the counties, which must serve more and more people looking for government help as the economy craters and jobs disappear, said Paul McIntosh, executive director of the California Association of Counties.

    With local governments every bit as battered as the state, little cash is available to cover the deficit.

    "It's a huge concern," McIntosh said. "There are counties that only have a couple weeks of cash on hand and could have trouble meeting payroll."

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/09/MN7715QD8H.DTL&type=politics&tsp=1
     
    #33     Feb 10, 2009
  4. If they mailed me an IOU, I'd counter-endorse it, and mail it back to them as payment of my property taxes.

    Yes, I would.
     
    #34     Feb 10, 2009
  5. Just getting rid of the police and firemens unions would at least be a start...but they keep dealing with these unions because fiscal suicide is a good thing?
     
    #35     Feb 10, 2009
  6. MattF

    MattF

  7. achilles28

    achilles28

    According to the CIA, California has the 10th largest economy in the World - larger than Canada, Spain or Australia.

    Cali's bankruptcy is tantamount to Canada or Australia going bankrupt.

    Who's next?
     
    #37     Feb 17, 2009
  8. heypa

    heypa

    The idiotic majority party in Sacto believes that raising taxes in a recession is (to use Martha Stewards phrase) " A good thing"
     
    #38     Feb 17, 2009