Skip to comments.California to miss budget deadline, "meltdown" nears
Posted on 06/15/2009 9:38:06 PM PDT by NormsRevenge
SACRAMENTO, California (Reuters) California lawmakers were poised to miss their constitutional deadline on Monday for a state budget, bringing the state's government closer to running out of cash.
Democrats and Republicans in the legislature's budget conference committee worked through Monday afternoon on a variety of proposals addressing Gov. Arnold Schwarzenegger's plan to close a $24.3 billion budget shortfall, but they failed to find common ground on its most dramatic proposal: eliminating the state's welfare system.
"This meeting is not headed in that direction," Republican Assemblyman Roger Niello said.
California's revenues are plunging amid recession, rising unemployment and the prolonged housing crisis, and the state is unable to borrow its way out of its immediate financial trouble by issuing debt at low cost because of its budget gap.
It will run out of cash within weeks if it does not balance its books, leaving it little option but to postpone a variety of payments, according to State Controller John Chiang, who estimated last week that California was "less than 50 days away from a meltdown of state government."
Democrats, who control California's legislature, said their aim is to cut spending, but to maintain a base of government programs, including many for the needy.
Republicans countered that only dramatic cuts will balance California's budget for its next fiscal year, which begins in July.
(Excerpt) Read more at news.yahoo.com ...
Time to cut the unions loose. Too bad these politicians don’t get it.
Is this necessarily a bad thing?
But...but...the Lakers won! Jobs will be created and tax revenues will flow in when businesses rebuild from the rioting right?
If we had hit bottom 5 years ago, this whole mess would likely be behind us, but aRnold was voted in and borrowed 15
Billion to bail the dems out.. ‘nuff said.
I guarantee taxes get raised to cover this shortfall.
Yes. It's going to send a shockwave down through city and county budgets. I had a meeting with Sacramento County officials today and they were pointing out that 22 of 177 sheriff deputies are on the bubble and they are looking for ways to keep them on. A lot of these public safety funds are categorical and matching funds linked directly to state spending and revenue, so even the most responsibly managed localities are going to take it in the shorts.
I like the republican saying that the meeting will not move toward killing welfare.
Even though they passed a Constitutional amendment REQUIRING them to do so.
5,115 retired CA state pensioners receive pensions in excess of $100K/year.
Local radio was saying the last time they obeyed the law was in '86.
Um, yeah, you’ve had the naked people screaming in the streets.
Or have you forgotten the regular SanFran Gay Pride parades????
And as the mighty ship goes down by the stern, the rats will abandon ship. The band will play nearer my God to thee!
RIP Passengers of RMS TITANIC and the state of California!
WAAHOO! Let’er buck! Screw’em all -— Unions, POS Pols,
All of ‘em. It’ll be fun to watch. About Time.
Too many illegals would be cut off of medical care.
The American Citizens that work fro the state of CA that know where the illegals are that are working for the State will finally come forward.
Sob stories galore regarding “immigrant families” (criminal illegal aliens) being “broken up” and kids forced to go to a “foreign country” (where they were born and have citizenship) because of job cuts.
Too many welfare junkies would be on the street wandering aimlessly, prime targets for TV and Radio news stories unfavorable to the communist utopia.
Welfare moms with their kids would be splashed on the news.
If the cops and firefighters are cut even more TV and Radio sob stories will be created.
So Too big to fail And we all know what comes next.
...the funny part is, here in southern California, where all serious news goes to die, nobody cares.
What did Miss Budget think about gay marriage anyway?
i don't want my texas tax dollars propping up fools
Ignore that last post. I may have misread the title.
Yup, a ‘Rat at heart, but he used the legitimacy provided by putting an “R” in front of his name to get the vote and the dough and then when it comes apart, “R”s get the blame...
What you said BUMP.
I guarantee they ain’t getting electricity below market rates from Texas again this summer. not even with another crooked federal judge.
Wow that’s mindblowing.
There's a good reason for that:
A California Democrat Speaks the Truth! (May 30, 2009)
Nearly all of the billions of dollars in cuts the administration has proposed would affect programs for poor Californians...
Government doesnt provide services to rich people, Mike Genest, the states finance director, said on a conference call with reporters on Friday. It doesnt even really provide services to the middle class. He added: You have to cut where the money is.
Don’t forget America’s protected class - illegal aliens. $15 billion in savings right there.
Oh yeah, can’t forget about all those American taxpayer monies going to Mexican citizens. Thanks for the reminder.
If the Dems insist on sharing the wealth, they can share the pain. No segment of society, especially the ‘takers’ should miss out on a lower standard of living. Cut back to what we, CA, did provide 10 years ago and the budget is balanced. Arnold said so.
"As the White House eagerly scans the economic landscape for signs of recovery, a looming drought in the form of state budget deficits could make any "green shoots" wilt. "
I swear...they almost had me believing the 'green-shoots' BS!
Looks like we're still going down.
No problem. Just tax the rich. That’s what pres. sh-t head says.
Taxes will get raised, prisoners freed, fees will skyrocket and not one bureaucrat or politician will lose their job.
Speaking of the fecal one, it is interesting that he hasn't said a word about this crisis in California to my knowledge. He could come out right now and say: "You must fix this locally." If he sits and does nothing, then swoops in in the midst of crisis with a bunch of money with strings attached, essentially nationalizing California, there can be no remaining doubt about his intentions.
Sure glad those California voters all bent down to vote for “the One” and now he gives his Finger to the Golden State! If I was a republican in California, I’d put out a commercial on Father’s Day saying just this “You voted for Obama to bring hope and change, but Obama would rather bail out an insurance giant named AIG than help California’s budget crisis” Guess who bought a pig in a poke!