(California) State Cash Supply Is Dwindling (OUT OF CASH IN SIX MONTHS)

LA Times ^ | Dec. 5, 2003 | Evan Halper

[FairOpinion]

Over the next few months, lawmakers must act quickly to find ways to keep from running out of cash in June — when the state must repay $14 billion in short-term loans taken out to keep the state solvent last summer. Without a large bond, such as the $15-billion long-term borrowing proposed by Gov. Arnold Schwarzenegger, the state won't have money to make those payments.

Many budget experts in Sacramento and elsewhere agree that trying to pay back the loans due in June without a large, long-term bond is close to impossible at this point. The state simply wouldn't have enough cash on hand, even if it enacted massive cuts in programs and services.

One option would be for lawmakers and Schwarzenegger to agree on raising taxes. But that is unlikely because the governor has said repeatedly that he would not support a tax increase.

[FairOpinion]

It is very clear that the Dems are trying to push Arnold into raising taxes, because without the bond, there is no other way of raising that much cash in a short time to sink any Republican chances for 2004 in CA.

And the Republicans in the CA legislature seem to be playing into the Dems hands -- the CA State Senate rejected Arnold's spending cap UNANIMOUSLY! I think that's a disgrace.

http://www.freerepublic.com/focus/f-news/1035023/posts

[cyborg]

I see taxes in CA's future.

[FairOpinion]

"I see taxes in CA's future."

==

In that case the Republican can write off CA practically forever, and you may have to kiss the economic recovery goodbye. CA is the WORLD's 5th largest economy. A tax increase will push it back into a recession and maybe the US and the world with it.

The Dems finally found their weapons, and seems like the Republicans in the Legislature are willingly digging their own grave, by giving the Dems the resounding victory of defeating Arnold's measure UNANIMOUSLY.

[At _War_With_Liberals]

"One option would be for lawmakers and Schwarzenegger to agree on raising taxes. "

Headline is typical liberal propaganda about having no money, people suffering, etc.

I am at the point where I can read only the headlines in the LAT and NYT, and then accurately predict 90% of the content and context of it.

Yet another editorial posing as news. Is every major paper in the USA biased?

[Lancey Howard]

It is very clear that the Dems are trying to push Arnold into raising taxes

Well, the Democrats are in for quite a surprise if that is their strategy, because Arnold will NOT raise taxes. He gave his word he would not raise taxes and Arnold is a stand-up guy and a man of his word.

Arnold would have to be a lying, lowlife scumbag to turn around and raise taxes after promising he wouldn't, and he absolutely WILL NOT raise taxes, not in a million years. Everybody can relax.

[FairOpinion]

Can the creditors foreclose on CA, when the short term debt becomes due in June and CA can't pay it?

[evilsmoker]

Hate to burst your bubble but...

“The Republicans have a choice,” Schwarzenegger said on the Sacramento talk radio show. “It is the fiscal recovery bond or raising taxes. That is a choice that is up to them, because I am only going to make cuts to a certain point.” -- Sacramento Bee 11-21-03

[Lancey Howard]

Can the creditors foreclose on CA, when the short term debt becomes due in June and CA can't pay it?

That would be interesting to see, but I bet Dubya would ride to the rescue at the last minute with a plan to bankroll California in return for California allowing its state government to be placed under the control of an oversight board. This would be similar to the federal bailout of New York by President Ford, and similar to the bailout of Philadelphia during Rendell's term as Mayor.

[Jimbaugh]

15% across the board cut to every department. That is my bet.

[SteveH]

“The Republicans have a choice,” Schwarzenegger said on the Sacramento talk radio show. “It is the fiscal recovery bond or raising taxes. That is a choice that is up to them, because I am only going to make cuts to a certain point.” -- Sacramento Bee 11-21-03

Uh-oh, paging Fair Opinion to ping the flying monkeys on this one... ;-)

[cyborg]

You know it will. Isn't that every politicians answer? That's what Bloomberg did with NYC.

[SteveH]

“The Republicans have a choice,” Schwarzenegger said on the Sacramento talk radio show. “It is the fiscal recovery bond or raising taxes. That is a choice that is up to them, because I am only going to make cuts to a certain point.” -- Sacramento Bee 11-21-03

http://www.freerepublic.com/focus/f-news/1026526/posts

[Sabertooth]

You're both just evil, making people confront Arnold's words like that.

[Prime Choice]

“The Republicans have a choice,” Schwarzenegger said on the Sacramento talk radio show. “It is the fiscal recovery bond or raising taxes. That is a choice that is up to them, because I am only going to make cuts to a certain point.” -- Sacramento Bee 11-21-03

So it's either raise taxes later or raise taxes now? Can't say either option is at all appealing.

How about cutting taxes, cutting spending by 20% across the board, and cutting off all aid to illegals unless the federal government means to pay 100% of the tab?

I should have run for governor...but even I know I'm un-electable. ; )

[SteveH]

Hey, I asked for flying MONKEYS, not a TIGER. Aaargghh ;-)

[FairOpinion]

"The state simply wouldn't have enough cash on hand, even if it enacted massive cuts in programs and services."

===

Which part of the above don't people understand?

Arnold is right. "The Republicans have a choice,” Schwarzenegger said on the Sacramento talk radio show. “It is the fiscal recovery bond or raising taxes."

The Republicans blew it.

[FairOpinion]

"I asked for flying MONKEYS"

[SteveH]

The Republicans blew it.

I have to imagine that there is a different explanation for the Republicans in the Senate voting against the bond. We just don't know the strategy yet.

Brulte supported Arnold's candidacy.

Republicans only voted against when it was clear it would fail.

So there's a strategy, I think, or at least a rationale...

[Sabertooth]

Which part of the above don't people understand?

Arnold is right. "The Republicans have a choice," Schwarzenegger said on the Sacramento talk radio show. "It is the fiscal recovery bond or raising taxes."

The part of the quote you omitted...

"The Republicans have a choice," Schwarzenegger said on the Sacramento talk radio show. "It is the fiscal recovery bond or raising taxes. That is a choice that is up to them, because I am only going to make cuts to a certain point." -- Sacramento Bee 11-21-03

That's why I didn't vote for this guy.

[evilsmoker]

It's War!!! Arnold says he's going after the Dems! I think he truly thought they'd work with him. They played hardball and he says he's ready to fight back. I hope that's the case.