California: State government diving deeper into debt. Need to "cut up our credit cards."

Oakland Tribune ^ | July 1, 2002 | Steve Geissinger

[Grampa Dave]

Will anyone even use that boardwalk?

That whole area re the politicians seems to have inhaled too much from the 1960's, 70's, 80's, 90's and appears from this boardwalk incidence to be continuing in this century.

Didn't Humboldt county vote big time for Goron, the only county north of the bay area to do so?

[snopercod]

Has Davis realized that this dog don't hunt? I think so.

Then he must have plans to play the bongos and tap dance on the California Constitution. It looks to me that he plans to totally disregard it.

Where is Katherine Connell?

[snopercod]

News Release
Controller of the State of California - Kathleen Connell
300 Capitol Mall, Suite 1850
Sacramento, California 95814

---

Contact:  Stacey Ragland (916) 445-2636

FOR IMMEDIATE RELEASE

  STATE CONTROLLER KATHLEEN CONNELL OUTLINES
RISKS ASSOCIATED WITH BUDGET DELAY

Legislative Employees, Vendors and Local Governments Will be
the First Victims of a Protracted Budget Debate
      

SACRAMENTO, July 1, 2002 - State Controller Kathleen Connell today gave a warning to the Legislature and the Governor that the effects of a delayed budget would soon start to be felt by the State's taxpayers.

"Unfortunately, legislative employees will once again become early victims of a no budget scenario," said Controller Connell. "If a budget is not passed by July 12, these individuals will not be paid. Similarly, vendors that serve the State will begin to face cash-flow pressures, with local governments following shortly behind. Each day the budget stalemate continues, more people, businesses and local programs are affected. And, every day of a delayed budget draws closer the possibility that Court action could cause the rest of the State's workforce to be paid minimum wages."

The new fiscal year begins today, however, without a signed Budget, the Controller's Office does not have the legal authority to make certain payments. State civil services employees will receive their full salaries because it is for services rendered in June. However, legislators, legislative staff, constitutional officers, and appointees will not be paid.

Contractors who provide services to the State will also not receive payment on invoices submitted for goods and services delivered in the current fiscal year.

"Without a budget, I am forced to withhold payment to vendors rendering services after July 1, which will also have a direct, negative impact on California's economy and individual households," said Controller Connell.

Some payments to local governments may also be delayed, including non-salary related trial court payments due July 15, and portions of the highway users tax payment due on July 31.

"Local governments rely on those revenues to meet various financial obligations," said Controller Connell. "The failure to pass a budget is an injustice to taxpayers, as it creates a burden on many levels."

The Controller strongly urged Sacramento leaders to act immediately in reaching an agreement.

"I want to commend the Senate and particularly the leadership shown by Senators John Burton and Steve Peace for resolving many of the difficult issues, and passing a budget timely," stated Controller Connell.

"I recognize that lawmakers are faced with exceedingly difficult choices in an attempt to close a record deficit of as much as $24 billion. However, I now urge the Assembly to come to a conclusion on this budget impasse as soon as possible as more and more taxpayers will begin to feel the financial strain."

###

For more information on the State Controller's Office,
please visit our Web site at www.sco.ca.gov

[SierraWasp]

Well heck! That's no good! She's supporting Burton & Peace and I sure don't want 'em to pass this budget without cutting State employment levels to 1999's booming rate, or at least freezing them, but to increase employment by 5,000 and beating up business, vehicle owners and smokers to just keep on keepin on is sinful!!!

For once, I have to disagree with her. Well, to be honest, I only agree with her when she's making Davis look bad.

[Grampa Dave]

You are right on target.

As a life long Rat, she is supporting two of the biggest socialist/communists tax and spenders in the legislature.

[Grampa Dave]

Just in case you feel hotter than usual after one of your purifying rants, you might want to save this link as a favorite.

It is the link to fires in the USA and Kali if we have any.

With our tv channels and left wing fishwraps, they are more interested in showing Gay Pride Parades and the evil that happens when our tax $'s don't arrive for a dark sider.

So they often omit to tell us real news like a huge fire a few miles from our home. This link can keep us updated during this fire season: (Link to firemaps)

Now, you can continue to rant in safety.

[SierraWasp]

Well, here's another BLAST By Dan Walters in the "Sacramento BEE-ESS" on the same theme! The stalled budget is Enron style deceptive accounting: Mash on this here link

[Robert357]

Where is Katherine Connell?

I think you answered yourself pretty effectively with post 43!

Ah, politics. Yes, the crisis is now at hand ans so, the quesiton is who to blame and how many people to frighten!

Actually, I am not sure that if push came to shove that Governor Davis would be worth minimum wage, as he hasn't shown much in the way of leadership.

[Grampa Dave]

This so good, you need to repost this as a separate thread.

Besure to ping Elk Grove Dan, Ernes at the Beach, Ron Dog, Norm's revenge and the rest of the Simon team.

Great find for an old ranter in those, them, there foothills.

[Robert357]

Wow, Dan sure pointed out the lack of clothes on the emperor!

"It contains significant and difficult cuts -- more than $7 billion," Assembly Budget Committee chairwoman Jenny Oropeza said. But all of those cuts were from the assumption of automatically higher spending, not from 2001-02 spending. The new budget is, in fact, a few million dollars higher.

I guess, just like school lunches, etc., democrats believe that just spending what you spent last year or even a little more is a "cut" in spending. Ah, politics!

Perhaps more significantly is the comparison to WorldCom and Enron and the statement that the budget numbers are a fraud by the State. If this article is picked up by the financial press or a similar theme is repeated, that could spell real trouble for the state of California's credit rating.

In fact the good news out of WorldCom, Global Crossing, Enron, could be that government financial reforms may become necesary to restore investor confidence in government bonds. It could be real interesting if some business leaders challenged Bush when he next talks about the lack of business ethics, to have government live up the same standards that Bush and the Democrats want business to live to. This whole thing could be win-win, if we get lucky!

[SierraWasp]

I don't have time to post as seperate thread, besides, my reply with link yesterday to the Liberal Editorial was even better!!! Check it out:You show this to ElkGroveDan, et. al.

I'm too busy helping folks get back into Cash & Fixed Accounts!!!

[Grampa Dave]

You posted, I'm too busy helping folks get back into Cash & Fixed Accounts!!!

Typical greed comes first from an evil VRWC!

[Robert357]

Wow, talk about biting the hand that feeds and employs the masses! Small business has been the economic dynamo that employs most people and to restrict the use of taking losses off of income as a way of boosting taxes, is just going to drive a lot of firms out of California. What a shame.

[snopercod]

Yes, the crisis is now at hand and so, the question is who to blame and how many people to frighten!

Are you following the budget scenario in Tennessee? Schools shut down, "non-essential" state "workers" furloughed, the usual BS.

[Robert357]

Are you following the budget scenario in Tennessee?

Why yes. Actually if you won't turn me into the Free Republic thought police, I will confess that I listen to NPR sometimes when I commute to work and Rush isn't on.

NPR had a Talk of the Nation special on how terrible things were in Tennessee. They interviewed a single mom manager of a state office who had 3 other single mom's in the same office that was being furloughed (sp?). She lamented about how this was going to put all of them in a bind!

Actually, NPR went on to state that Tennessee had significant financial problems doing the boom times when others states were socking away money in rainy-day funds and adjusting revenues(i.e. taxes) and expenditures. NPR made it sound "unfair" that Tennesse had such bad luck. But they also said that it was of their own doing and had they gotten things in line in the past they wouldn't be in such despirate straights now.

OK I will say it and hopefully not get flamed. I go between wanting to take out my .357 Magnum and shoot the radio after I listen to an NPR program to agreeing with the comentattor. While I sense a real liberal bias, they seem lately to be trying to partially balance things. Just the other day, they had a cowboy poet talking about God & Country and patriotism! Other times they bring on folks to ridicule the Predge of Allegence. I can never tell whether a story will be worthwhile or just stupid!

[snopercod]

It always starts out by sneaking a few minutes of PBS from time to time. Then an occasional peek at Rosie magazine. Pretty sooon you'll be mainlining CNN and subscribing to Mother Jones.

[Robert357]

responding to post 34

Sac Bee article that talks about RAW?s at the very end.

Davis, meanwhile, has had to contend with state Controller Kathleen Connell, who succeeded him in the controller's office and has been feuding with him for nearly eight years. She's termed out of state office this year and is using the budget crisis to settle some old scores.

One example: Before agreeing to issue "revenue anticipation warrants" that the state is using to bridge some of the budget's deficit, Connell insisted that Davis and legislative budget writers expand the state's reserve fund. Another: Davis aides announced last week, apparently to ramp up pressure on the Legislature to act on the budget, that the state would withhold payments to counties to cover welfare checks. Within a day, Connell had undercut Davis by declaring that she would make the payments "just as they have been every other year the budget has not been enacted in a timely fashion."

It was pure revenge, and vengeance will always trump partisan solidarity.

What I think we are seeing is that as long as Kathleen Connell is in office, Davis is not going to get his power-bonds, power-bond-anticipation-notes, power-warrants or power-what-have-yous! This may have been partly what happened. The dem's may have other ways of getting enough money for the moment, if so they were crying wolf before.

[snopercod]

Good find. This is getting good!

Isn't it amazing that all the goings on in TN are over a $400 million deficit, vs a $24 billion shortfall in California?

[Saundra Duffy]

The budget battle will be a doozie!