Surprise! California budget shortfall twice as large as predicted

[lynnf]

http://www.sacbee.com/2010/11/11/3176483/california-budget-shortfall-twice.html




In what has become a somber November tradition, the nonpartisan Legislative Analyst's Office projected Wednesday that California must close a $25.4 billion shortfall next year, twice as large as legislative leaders predicted.


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[rprprs]

Have fun, Jerry. :D

[Bern]

They are in deep doo doo.

[cswake]

They had good intentions, but their welfare is running out of control. Just Education and Health compromise 69.4% of the expenditure! I'm sure they'll do some accounting gimmicks, raise taxes, and next year find that they have an even bigger deficit.

http://www.ebudget.ca.gov/pdf/Enacted/BudgetSummary/SummaryCharts.pdf

http://i55.tinypic.com/2e6hbhj.jpg

[armstrong]

was this really a surprise, I think not,,dig deeper in your pocket people , just wait till more states report the same increased shortfall,, more jobs at lower pay, less hours, but prices increase,and more regulation and higher premiums...yea we are all ok.

[HOLLYWOOD]

The Socialist Nazi Arnold Schwarzenegger is calling an mandatory Emergency session.

Notice how all this surfaces AFTER the elections? The chief "bookcookers" are Bill Lockyer and Johnny Chiang have been hiding the true numbers.

It now goes from BAD to WORST... California is borrowing $40 Million a Day to pay Unemployment Insurance.

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/07/state/n100503S24.DTL


Calif borrows $40M a day to pay unemployment

Sunday, November 7, 2010

(11-07) 10:05 PST Los Angeles, CA (http://topics.sfgate.com/topics/Los_Angeles) (AP) --

With one in every eight workers unemployed and empty state coffers, California (http://topics.sfgate.com/topics/California) is borrowing billions of dollars from the federal government to pay unemployment insurance.
The Los Angeles Times (http://topics.sfgate.com/topics/Los_Angeles_Times) reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.


The continued borrowing means federal unemployment insurance taxes are going to increase, upping the annual payroll costs $21 a year per worker.


California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.

The state took out its first loan from the federal government early last year, to deal with rising payment of benefits and number of claims.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/07/state/n100503S24.DTL#ixzz1559zCk48

[sluggo]

It's OK. They'll just get some more IOU's from JP Morgan.

California will be saved!

[TheHumblePhysicist]

I live in California, and I must say, this is the least painful recession I can imagine. Besides the job market being total shit, I'm not really feeling any pain. Everybody trumpets the horror show about the collapsing economy, but really, it's not that bad.

They say we have a terrible trade deficit, but really, the worst that could happen is we go a couple years without buying a new car or house, boom. Trade balanced, recession over. I don't think the coming collapse will be all that bad really.

[roho76]

I live in California, and I must say, this is the least painful recession I can imagine. Besides the job market being total shit, I'm not really feeling any pain. Everybody trumpets the horror show about the collapsing economy, but really, it's not that bad.

They say we have a terrible trade deficit, but really, the worst that could happen is we go a couple years without buying a new car or house, boom. Trade balanced, recession over. I don't think the coming collapse will be all that bad really.

Well hopefully you can feed yourself with optimism because your going to be eating a lot of it.

[PeacePlan]

Well hopefully you can feed yourself with optimism because your going to be eating a lot of it.

Yes they will never cut the amount they need to to get out of this. At least as they go broke they are more likely to make pot legal 2012


#When I was a kid 1950's California was the state everyone wanted to be in and now it is the state everyone wants to get out of......

[Koz]

I'm sure Governor Moonbeam will have California out of it's fiscal straits soon. Hahahahaha, right.

We are screwed, because Cal. is borrowing money from Washington, which means all of us. And do you really think they will ever repay us, no they will default. I left California 4 years ago becuase I couldn't hndle it anymore and now they are exporting thier debt to me in Ohio. I'm still paying for it.