Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Schwarzenegger orders cuts amid fiscal crisis
AP on Yahoo ^ | 7/31/08 | Don Thompson - ap

Posted on 07/31/2008 12:41:10 PM PDT by NormsRevenge

SACRAMENTO, Calif. - With California's cash dwindling and legislators still debating a new budget, Gov. Arnold Schwarzenegger eliminated 22,000 part-time and temporary state positions Thursday and ordered that 200,000 state workers receive the federal minimum wage.

His signing of the executive order had been expected since last week but stood as a stark illustration of the cash problem facing the nation's most populous state. Schwarzenegger apologized to state workers but said he had no choice.

"Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," Schwarzenegger said. "This is not an action I take lightly."

Lawmakers have yet to agree on a spending plan a month after the state's fiscal year began, leaving California without the ability to pay for contractors, the higher education system and legislative employees.

Democratic and Republican lawmakers remain divided over how to close a $15.2 billion deficit, with Democrats favoring $8.2 billion in new taxes on corporations and the state's wealthiest residents. Republicans want a spending cap and oppose tax increases.

Adding to the fiscal mess has been an unprecedented number of wildfires this year, costing the state far more for emergency response than it had budgeted.

As of June, more than 30 states faced deficits totaling a projected $40 billion, or more than triple the gap of the previous year, according to the National Conference of State Legislatures.

California is the last state with a fiscal year that begins July 1 that still does not have a budget. It is facing a $15.2 billion deficit, dwarfing that of all other states. The next highest at the start of the fiscal year was New York's, at $5.2 billion.

--snip--

The governor's order is certain to be challenged. ...

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Front Page News; Politics/Elections; US: California
KEYWORDS: california; cuts; fiscalcrisis; orders; schwarzenegger

1 posted on 07/31/2008 12:41:10 PM PDT by NormsRevenge
[ Post Reply | Private Reply | View Replies]

Cut .. Cut! ... CUT !!!


2 posted on 07/31/2008 12:41:53 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

Total Recall. The games they play. Fire one out of every 3 state workers, then get down the the real cutting.


3 posted on 07/31/2008 12:43:23 PM PDT by samadams2000 (Someone important make......The Call!)
[ Post Reply | Private Reply | To 1 | View Replies]

California Governor Arnold Schwarzenegger addresses the media on the podium in the state capital of Sacramento July 29, 2008, after the Los Angeles area was hit by a 5.4 magnitude earthquake earlier in the day. "I think we were very lucky with this one," Schwarzenegger said. Man at right is unidentified. REUTERS/Handout


4 posted on 07/31/2008 12:44:16 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: NormsRevenge

“It is facing a $15.2 billion deficit, dwarfing that of all other states. The next highest at the start of the fiscal year was New York’s, at $5.2 billion.”

Two Blue States that will soon be demanding federal bail outs. They don’t have much of a case, though. Why should poor people in MS pay higher taxes so that CA and NY millionaires can be bailed out of their foolish fiscal choices? To make them do so would be stealing from the poor and giving to the rich.


5 posted on 07/31/2008 12:45:27 PM PDT by Brilliant
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
Turn your state cars,cell phones and gas cards for a start. Cut benefits to illegals. Lay off half of the social workers....etc....
6 posted on 07/31/2008 12:45:40 PM PDT by 4yearlurker (Any day above ground is a good day.)
[ Post Reply | Private Reply | To 1 | View Replies]

We were very lucky indeed earlier this week.

A true ‘Big One’ will leave no doubt as to what actions would need to be taken. Insert ‘earthquake’ or ‘huge deficit aka tax hike required’ [here] game token to proceed.


7 posted on 07/31/2008 12:47:30 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: NormsRevenge
"Today I am exercising my executive authority to avoid a full-blown crisis . . ."

Avoid?! I think a full-blown crisis is already upon him.
8 posted on 07/31/2008 12:47:32 PM PDT by Bloodclot
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

“Man at right is unidentified.”

That’s a funny thing to say. Why mention it?


9 posted on 07/31/2008 12:47:32 PM PDT by Brilliant
[ Post Reply | Private Reply | To 4 | View Replies]

To: NormsRevenge

Maybe this will backfire and highlight the stupid things the California government spends the taxpayers’ money on.

People may start valuing jobs over spotted owls again.


10 posted on 07/31/2008 12:48:37 PM PDT by Tex Pete (Obama for Change: from our pockets, our piggy banks, and our couch cushions!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brilliant

though. Why should poor people in MS pay higher taxes so that CA and NY millionaires can be bailed out of their foolish fiscal choices?

What a country! We are all interconnected yaknow. ;-]

even our bank accounts it seems. 8-o


11 posted on 07/31/2008 12:49:22 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: NormsRevenge

I’ll bet they get twice the work done now.


12 posted on 07/31/2008 12:52:50 PM PDT by Slapshot68
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
...eliminated 22,000 part-time and temporary state positions Thursday and ordered that 200,000 state workers receive the federal minimum wage.

"Eliminated"? or "furloughed", meaning they will be re-hired later?

13 posted on 07/31/2008 12:53:14 PM PDT by skeeter
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

Well, at least the CA legislature was able to find time to do the important stuff, like banning trans fat, during this fiscal meltdown. sheesh.


14 posted on 07/31/2008 12:55:14 PM PDT by Johnstone
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

The fats in the fire.


15 posted on 07/31/2008 12:55:43 PM PDT by Uncle Hal
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

NC is rat controlled but at least ours have some common sense and fiscal responsibility. Note I said some.


16 posted on 07/31/2008 12:57:05 PM PDT by JackDanielsOldNo7 (On guard until the seal is broken)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
Gov. Arnold Schwarzenegger eliminated 22,000 part-time and temporary state positions ...

After 1700+ days in office, Arnold finally makes a small move in the right direction.

(Why did they have 22,000 part-time and temporary state positions, anyway?)

17 posted on 07/31/2008 12:58:53 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Johnstone

Don’t forget, the government wants a sales tax on everything you buy and, add a new tax for the bag you take it home with.


18 posted on 07/31/2008 1:00:13 PM PDT by edcoil
[ Post Reply | Private Reply | To 14 | View Replies]

To: NormsRevenge

He has a $15.2 billion deficit and he doesn’t realize he already has a full blown disaster?

So they do silly meaningless stunts like workers getting minumum wage etc. That will not stop the deficit or help the people.

CUT the social engineering programs the dems instituted to win votes and cut the handouts to ILLEGAL aliens and the State will eventually come around....


19 posted on 07/31/2008 1:00:37 PM PDT by SECURE AMERICA (Got Freedom ? Thank a Veteran...... Want to keep Freedom? Don't vote Obama)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloodclot
Avoid?! I think a full-blown crisis is already upon him.

"full blown crisis" in Sac speak means they don't have the cash to pay the bills. Tax, borrow... it's all about cash. The house of cards will continue indefinitely but, without cash, they can't continue their charade.

20 posted on 07/31/2008 1:01:29 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
[ Post Reply | Private Reply | To 8 | View Replies]

To: skeeter
"Eliminated"? or "furloughed", meaning they will be re-hired later?

Probably means "suspended WITH pay"

21 posted on 07/31/2008 1:03:21 PM PDT by Cementjungle
[ Post Reply | Private Reply | To 13 | View Replies]

To: Cementjungle

I heard the F word used on a radio news report this morning. Puts a little different spin on it.


22 posted on 07/31/2008 1:05:04 PM PDT by skeeter
[ Post Reply | Private Reply | To 21 | View Replies]

To: NormsRevenge
With California's cash dwindling and legislators still debating a new budget, Gov. Arnold Schwarzenegger eliminated 22,000 part-time and temporary state positions Thursday and ordered that 200,000 state workers receive the federal minimum wage.

I don't understand the problem, the Girly-man morphed into a liberal Democrat and the Democrat answer to every question is to raise taxes.

With an overwhelmingly Democrat California legislature it should be easy for Arnie to sign more and new taxes. Then it's raises, bonuses, benefits and vacations for everyone!

23 posted on 07/31/2008 1:05:12 PM PDT by RJL
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brilliant

“Man at right is unidentified.”

He’s his cigar guy is my guess , doesn’t look like a Kennedy.


24 posted on 07/31/2008 1:08:37 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: NormsRevenge
Meanwhile an article that ran today in the paper in my little old home state...

W.Va. Legislature ponders surplus

CHARLESTON, W.Va. (AP) -- West Virginia's lawmakers are in Charleston to discuss a wide range of subjects, but one may stand out as the most pressing.

Legislators gathering Monday for three days of interim meetings will likely discuss ways the state should use its current budget surplus.

High demand for coal and natural gas has helped the state stay in the black while others around the country are facing budget cuts and red ink.

Fiscal conservatives in the Legislature want to use the surplus to pay down some of the state's debts.

West Virginia's reserve fund stands at roughly 15 percent of general revenue.

That surpasses the 10 percent recommended by Wall Street analysts who help determine interest rates for state bond issues.

25 posted on 07/31/2008 1:11:19 PM PDT by the_devils_advocate_666
[ Post Reply | Private Reply | To 1 | View Replies]

To: samadams2000
"Fire one out of every 3 state workers, then get down the the real cutting."

Start at the top because there's usually always too many chiefs, and not enough indians.

26 posted on 07/31/2008 1:13:58 PM PDT by mass55th
[ Post Reply | Private Reply | To 3 | View Replies]

To: the_devils_advocate_666

Good for W. Va! They need a break. Big coal fan here, W. Va should be kicking butt on much higher coal prices, especially met coal!


27 posted on 07/31/2008 1:15:45 PM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: NormsRevenge

Seems there will be plenty of hands now to do all those jobs that “Americans won’t do”......


28 posted on 07/31/2008 1:18:47 PM PDT by bestintxas (It's great in Texas)
[ Post Reply | Private Reply | To 4 | View Replies]

To: the_devils_advocate_666

oh yur evil, fo’ sure. ;-) Thanks.

Bless all the sane folks that live and vote there.. now get rid of byrd and rockefeller. ;-)

California has a long way to go to dig it’s sorry butt out of this one.


29 posted on 07/31/2008 1:19:31 PM PDT by NormsRevenge (Semper Fi ... Godspeed ... ICE toll-free tip hotline 1-866-DHS-2-ICE ... 9/11 .. Never FoRget!!!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: NormsRevenge

Stop all spending until the budget is passed and balance that budget with the money they have. No new taxes either.


30 posted on 07/31/2008 1:20:43 PM PDT by RC2
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
"The governor's order is certain to be challenged. ..."

If these workers belong to a union, and their salaries are controlled by contracts, then he's going to lose. The State won't be any further ahead, and will have to pay legal costs plus back pay. Several years ago, during a budget crisis in New York, Mario Cuomo came up with the idea to lag the pay of State workers. Only problem was that we had already been lagged two weeks pay when we started the job. This third week imposed would force us to work 7 days without pay, and we wouldn't get it back until we left State service or retired. The unions challenged it and Cuomo lost. I wonder if Arnold's putting his own staff on minimum wage.

31 posted on 07/31/2008 1:22:14 PM PDT by mass55th
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

I’m so sick of Schwarzenliberal!

This means my B-in-L (the CalTrans worker) will want a loan again this year.


32 posted on 07/31/2008 1:24:23 PM PDT by gc4nra ( this tag line protected by Kimber and the First Amendment (I voted for McClintock))
[ Post Reply | Private Reply | To 1 | View Replies]

To: calcowgirl
"(Why did they have 22,000 part-time and temporary state positions, anyway?) "

Because it's cheaper to hire part-time and temps who aren't eligible for benefits.

33 posted on 07/31/2008 1:27:19 PM PDT by mass55th
[ Post Reply | Private Reply | To 17 | View Replies]

To: bestintxas
Send them back and we will have plenty of money.Its a joke out here in little Tijuana.
34 posted on 07/31/2008 1:28:16 PM PDT by easternsky
[ Post Reply | Private Reply | To 28 | View Replies]

To: RJL
"I don't understand the problem, the Girly-man morphed into a liberal Democrat and the Democrat answer to every question is to raise taxes."

I thought the Dems said letting gays marry would bring more money into California. I think Arnold was among them.

35 posted on 07/31/2008 1:31:19 PM PDT by mass55th
[ Post Reply | Private Reply | To 23 | View Replies]

To: mass55th
Because it's cheaper to hire part-time and temps who aren't eligible for benefits.

I thought it was cuz they didn't have SS #'s. ;-)

36 posted on 07/31/2008 1:33:32 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
[ Post Reply | Private Reply | To 33 | View Replies]

To: calcowgirl
"I thought it was cuz they didn't have SS #'s. ;-)"

That's probably true too!

37 posted on 07/31/2008 1:36:10 PM PDT by mass55th
[ Post Reply | Private Reply | To 36 | View Replies]

To: NormsRevenge
Man at right is unidentified. REUTERS

Hmmm... I watched this presser on the tele and the fellow on the right was introduced and spoke. So why couldn't the resourceful folks at reuters be bothered to do a little legwork?

Executive Director, Office of Emegency Services

38 posted on 07/31/2008 1:43:25 PM PDT by Database
[ Post Reply | Private Reply | To 4 | View Replies]

To: NormsRevenge
The idiots in California keep dawdling as the state draws closer to bankruptcy... oy vey!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

39 posted on 07/31/2008 1:49:05 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Database
And why can't resourceful freepers be bothered with spell checking, lol.

Director
Governor's Office of Emergency Services

40 posted on 07/31/2008 1:52:19 PM PDT by Database
[ Post Reply | Private Reply | To 38 | View Replies]

To: calcowgirl
If you and I - mere mortals - tried the same stunts Sacramento has gotten away with for years - you and I would be carted off to prison! The California budget "crisis" is all a big scam. They'll borrow more and jack up taxes to delay the inevitable for awhile.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

41 posted on 07/31/2008 1:53:46 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 20 | View Replies]

To: NormsRevenge
"The first paycheck to be affected by the minimum wage order would be the one state employees receive in early September, but state Controller John Chiang, a Democrat, sent a letter to Schwarzenegger on Thursday saying he will defy the order and issue employees their regular paychecks."
42 posted on 07/31/2008 2:21:58 PM PDT by Jim Robinson
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brilliant
While I'm 100% against any federal bail out, I would point out that CA taxpayers pay a disproportionate amount of federal taxes compared to the “poor states” that never comes back to CA. The poor states receive much higher per capital federal moneys from “rich state” taxpayers. With higher costs of living and higher incomes comes higher federal tax rates so stop the BS about poor states bailing CA out. It is the other way around and has been that way for some time.
43 posted on 07/31/2008 2:37:05 PM PDT by DB
[ Post Reply | Private Reply | To 5 | View Replies]

To: DB

Yes, but they pretty much brought it on themselves. It’s not the “poor” states like MS and OK that have provided the impetus for the graduated income tax. If the liberal states want high taxes for rich people, then they should not complain when they get them, and they should not expect the poor states to bail them out of their fiscal folly on the theory that because they are rich, they pay more taxes, and the rest of us therefore owe them. The people who are in the best position to pay for this mistake are the people who made it, i.e. the Californians themselves.


44 posted on 07/31/2008 2:57:47 PM PDT by Brilliant
[ Post Reply | Private Reply | To 43 | View Replies]

To: Brilliant
I don't disagree with that.

I find it amazing that Californians repeatedly voted for two liberal senators that voted to increase federal taxes on their “wealthy” state citizens multiple times. In a high cost of living state all that does it takes money out of the state they claim to represent and pass it out as federal distributions to other states.

Stupid on steroids...

45 posted on 07/31/2008 3:46:25 PM PDT by DB
[ Post Reply | Private Reply | To 44 | View Replies]

To: NormsRevenge

Only about six friggin years too late..


46 posted on 07/31/2008 4:01:54 PM PDT by Fred (The Democrat Party is the Nadir of Nihilism)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
Democrats favoring $8.2 billion in new taxes on corporations and the state's wealthiest residents.

Way to go to chase all the money out of California... who's left?

47 posted on 07/31/2008 7:57:09 PM PDT by John123 (Obambi said that he has been in 57 states. I will now light myself on fire...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

The unions’ behavior is unacceptable and illegal. Put the leaders in jail indefinitely and confiscate the assets of each union under RICO.

Except for front-line public safety workers, fire every friggin’ one of ‘em, then eliminate the agencies or privatize. This would go a very long way towards undoing the socialists’ gains in this state.

One particularly great side benefit of this approach: there’d be no taxpayer funded bleeding hearts to provide services to illegals. They’d have every reason to head back to Mexico.


48 posted on 08/01/2008 11:18:25 PM PDT by libsmacker75
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson