California is having fun again

[hugolp]

http://www.businessinsider.com/schwarzenegger-already-forced-to-call-emergency-budget-session-and-california-muni-funds-dive-2010-11

http://static.businessinsider.com/image/4cdd893dccd1d5b815040000/chart.png

[Lafayette]

"California Governor Arnold Schwarzenegger said on Thursday he will call a special session of the state legislature on December 6 to tackle the budget deficit, newly estimated at more than $25 billion through the next fiscal year. Schwarzenegger said he would offer a plan including budget cuts, but Assembly Speaker John Perez rebuffed Republican Schwarzenegger and said he prefers to work on budget matters with incoming Governor Jerry Brown, a fellow Democrat who takes office in January"

Ah yes, the Keynesian can kick.

Keep putting it off and putting it off and the problem should just go away all by itself :rolleyes:

[Zippyjuan]

At least the states are forced to try to deal with the problem instead of letting the kids and grandkids worry about it by borrowing more now and worry about paying later like the Federal government does.

[PeacePlan]

At least the states are forced to try to deal with the problem instead of letting the kids and grandkids worry about it by borrowing more now and worry about paying later like the Federal government does.

The problem is the State Governments are using tricky bullshit accounting just like the Federal Government.

[jclay2]

I am sure arny and the gang can hammer out a viable solution. :p

[hugolp]

At least the states are forced to try to deal with the problem instead of letting the kids and grandkids worry about it by borrowing more now and worry about paying later like the Federal government does.

The states are somehow more constrained, this is true, but the federal government already bailed them out once, and I am not sure it wont happen again.

And the debt wont be for the kids. The debt is being monetized and will appear as rising prices. The USA kids will inherit a country with no real capital because of the continuous boom and bust brought about by inflation.

[VBRonPaulFan]

At least the states are forced to try to deal with the problem instead of letting the kids and grandkids worry about it by borrowing more now and worry about paying later like the Federal government does.

California isn't really dealing with the problem. They've borrowed a LOT of money from the federal government already, and they're constantly trying to continue to borrow. They delayed a few payments, and sold/leased back some properties which only saves them money in the very short term. They are literally just kicking the can down the road. The problem is that people there are too hooked onto entitlements and government programs that nobody running the show over there is serious about cutting back on the size of their government.

[klamath]

It is going to be fun fun fun. Now they only have to pass a budget with a simple majority and they have a democrat as governor so they have the whole pie now. Let's see how they make this into the wonderstate again.

[PeacePlan]

It is going to be fun fun fun. Now they only have to pass a budget with a simple majority and they have a democrat as governor so they have the whole pie now. Let's see how they make this into the wonderstate again.


YouTube - The Mamas & The Papas: California Dreamin' (http://www.youtube.com/watch?v=dN3GbF9Bx6E)

[messana]

California = Progressive Paradise.

[cubical]

California = Progressive Paradise.

I know this is always said, but what are the major progressive movements they have in california?

[xd9fan]

when do other states start telling Cali to grow up and knock it off??

[Jeez]

Why not start cutting the school budget? every study has shown that teacher:student ratio means squat when it comes to actual academic performance. Spending 12k per student is futile, no country even comes close and what is it gotten us so far other than have one of lowest performance students among developed nations.

[Zippyjuan]

It is going to be fun fun fun. Now they only have to pass a budget with a simple majority and they have a democrat as governor so they have the whole pie now. Let's see how they make this into the wonderstate again.

Any tax increases still require a 2/3rd vote though.

[the count]

Deleted

[klamath]

Why not start cutting the school budget? every study has shown that teacher:student ratio means squat when it comes to actual academic performance. Spending 12k per student is futile, no country even comes close and what is it gotten us so far other than have one of lowest performance students among developed nations.

It is called the teachers union. They control the state of California's politics and budget.

[Brian4Liberty]

At least the states are forced to try to deal with the problem instead of letting the kids and grandkids worry about it by borrowing more now and worry about paying later like the Federal government does.

Not really. When Schwarzenegger first came in the "compromise" to keep the State afloat was to issue massive amounts of bonds (debt). Debt that will get passed on for future taxpayers to worry about.

As an aside, Goldman Sachs, JP Morgan, etc. no doubt made a killing on underwriting, issuing, reselling and bundling that debt...politicians and banksters, partners in crime.

[Brian4Liberty]

It is called the teachers union. They control the state of California's politics and budget.

Don't forget all of the various law enforcement/incarceration unions.

[Brian4Liberty]

This link seems to indicate ~$74 billion in General Obligation Fund bond debt issued for last year in California...not sure whether this includes "special" bond issues for specific purposes. Could be even more borrowed than that.

http://www.dof.ca.gov/budgeting/budget_faqs/information/documents/CHART-K4.pdf