Skip to comments.California Orders Massive Cuts to Close Budget Gap
Posted on 07/21/2009 12:32:59 PM PDT by kellynla
SACRAMENTO, Calif. -- California may soon be able to stop printing IOUs now that Gov. Arnold Schwarzenegger and legislative leaders have agreed on a compromise plan to close the state's $26 billion shortfall without tax increases.
The governor and lawmakers announced the compromise late Monday, nearly three weeks after the state began issuing pay-you-later warrants to thousands of state contractors and vendors. Many recipients had trouble finding someone to take them after several major banks stopped accepting IOUs.
The four legislative leaders will begin selling the plan to other lawmakers Tuesday as the best way to get the state back on firm financial ground and prevent further sinking of the state's credit rating, already the lowest in the nation. A contentious vote is expected Thursday.
The agreement composed of cuts, borrowing and fund shifts was not expected to resolve California's financial problems as the economy continues to struggle and tax revenue lags far behind the level of the boom years.
"This is, of course, one of the most difficult economic times to face our state since the Great Depression, so none of these were easy choices," said Assembly Minority Leader Sam Blakeslee, R-San Luis Obispo. "I think we selected a path which will lead the state back to the point where we will be strong."
Personal income fell this year in California for the first time in 70 years, leading to a 34 percent plunge in income tax revenue during the first half of the year.
The $26.3 billion shortfall amounts to nearly 30 percent of the state's general fund, the account that pays for day-to-day state services.
(Excerpt) Read more at newsmax.com ...
Under that plan, drilling would be allowed from an existing rig off the Santa Barbara coast, generating about $1.8 billion in revenue over time. The proposal, opposed by many conservation groups, would be the state's first new offshore oil project in more than 40 years.
Cutting spending instead of raising taxes during a recession? That...actually makes sense.
Isn’t it kinda late?
Kulifornia and Ahhhnold could start by cutting off all the welfare, medical care and social services to all of the illegal immigrants. How many billion dollars a year would that save?
When the history of the fall of the United States is written, "conservation groups" will no doubt be listed as one of the main contributing factors.
Now just bust the SEIU and you’ll be in the black for the next dozen years.
“Isnt it kinda late?”
As regards the cuts, yes. But it’s never too late not to raise taxes.
>> leading to a 34 percent plunge in income tax revenue during the first half of the year
And as goes California, so goes the nation.
This is why Bambi is terrified of releasing the federal budget numbers — like California’s, they’re dismal. He’s trying to delay until (he thinks) his health care boondoggle is a done deal.
“How many billion dollars a year would that save?”
“In hosting America’s largest population of illegal immigrants, California bears a huge cost to provide basic human services for this fast growing, low-income segment of its population. A new study from the Federation for American Immigration Reform (FAIR) examines the costs of education, health care and incarceration of illegal aliens, and concludes that the costs to Californians is $10.5 billion per year.
Among the key finding of the report are that the state’s already struggling K-12 education system spends approximately $7.7 billion a year to school the children of illegal aliens who now constitute 15 percent of the student body. Another $1.4 billion of the taxpayers’ money goes toward providing health care to illegal aliens and their families, the same amount that is spent incarcerating illegal aliens criminals.
“California’s addiction to ‘cheap’ illegal alien labor is bankrupting the state and posing enormous burdens on the state’s shrinking middle class tax base,” stated Dan Stein, President of FAIR. “Most Californians, who have seen their taxes increase while public services deteriorate, already know the impact that mass illegal immigration is having on their communities, but even they may be shocked when they learn just how much of a drain illegal immigration has become.”
The Costs of Illegal Immigration to Californians focuses on three specific program areas because those were the costs examined by researchers from the Urban Institute in 1994. Looking at the costs of education, health care and incarceration for illegal aliens in 1994, the Urban Institute estimated that California was subsidizing illegal immigrants to the tune of about $1.1 billion. The enormous rise in the costs of illegal immigrants over the intervening ten years is due to the rapid growth in illegal residents. It is reasonable to expect those costs to continue to soar if action is not taken to turn the tide.
“Nineteen ninety-four was the same year that California voters rebelled and overwhelmingly passed Proposition 187, which sought to limit liability for mass illegal immigration. Since then, state and local governments have blatantly ignored the wishes of the voters and continued to shell out publicly financed benefits on illegal aliens,” said Stein. “Predictably, the costs of illegal immigration have grown geometrically, while the state has spiraled into a fiscal crisis that has brought it near bankruptcy.
“Nothing could more starkly illustrate the very high costs of cheap labor’ than California’s current situation,” continued Stein. “A small number of powerful interests in the state reap the benefits, while the average native-born family in California gets handed a nearly $1,200 a year bill.”
The Federation for American Immigration Reform1 is a nonprofit, public-interest, membership organization advocating immigration policy reforms that would tighten border security and prevent illegal immigration, while reducing legal immigration levels from about 1.1 million persons per year to 300,000 per year.”
Between the Baraqqi-fired flames of recession and conservatives going Galt, the beast is going to starve of tax money.
I don’t get it where people have the idea that illegal immigrants get welfare, they don’t.
They are not really cutting spending. They are sneaking in tax hikes and pretending they are cutting spending. They are borrowing money from other programs and promising to pay them back in 2 years time. This budget is a farce!
“late?”...”late” to do what? cut spending and start drilling our own oil...tell me you're J/K...shezzzzzzzz...sit back and watch...you guys in WA might learn something. LOL
Can you pay your CA taxes with an IOU? No. they would put you in jail. So CA has no right to pay legitimate debts with an IOU.
They also opened up some offshore drilling off the Santa Barbara coast.
No, illegal aliens are NOT eligible for welfare. On the other hand, many of them have children born here who are. In addition there are people who cheat and tell the welfare folks they are American citizens.
>> the beast is going to starve of tax money
So the answer is to raise taxes, right? :-)
When the well is dry, pump faster!
“On the other hand, many of them have children born here who are.”
Which means they get welfare legally.
“In addition there are people who cheat and tell the welfare folks they are American citizens.”
Just like e-verify they have to provide a social security number to get it.
I think all situations can be addressed equitably by simply shipping the parents back and adopting the children out, and then, if the parents try to come back into the United States, they get a bill for our trouble in adopting their kids out.
It wouldn't take more than half a dozen instances of that sort of treatment and they'd quit having kids here.
“Look, their children may well be eligible for welfare, but at the same time the parents have a legal obligation to leave the country AND care for their children.”
And there are laws that need to be enforced.
Any pay cuts for legislators? Any cuts in welfare for illegals?
I dont get it where people have the idea that illegal immigrants get welfare, they dont.
Then apparently that 10.5 billion discussed in the article doesn’t really exist. Has anyone given taxpayers the good news?
Never mind paying off the IOUs.
what 10.5 billion?
Illegal alien parasites also received unemployment benefits, workers compensation etc.
They vote, buy homes with money loaned from the corrupt banksters, they drive, and choke off our social services, hospitals, jails, schools etc.
You have to be a citizen to vote.
I can tell ya about the epic fraud from millions of these illegals *all* day long...they are *killing* our system in ways most can’t imagine.
You also have to be citizen to drive legally.
Then prosecute them.
now that’s funny.
Want stories? Like the company that hired a dozen or so illegals to run machines....It's illegal to hire illegals right?
One got drunk everyday on break in the alley....Got so drunk one day, he stood urinating on his rubber mat in from of all the other illegals that were laughing, thinking it was funny....He wound up filing multiple fraudulent workers comp claims against his employer.
This happens all the time.
I got more.
Are you stoopid?
You have to be a citizen to vote.
Yeah thats what the law says...it also says the President has to be a natural born citizen, how’s that working out? FRAUD RAMPANT EVERYWHERE
Yep and while immigration is not the only issue financially draining CA as long as they refuse to acknowledge the financial damage done by these invaders and their spawn they are dreaming of any kind of financial reconciliation. It really is a make believe world.
You aren’t telling me stuff I don’t know.
Yeah, I’m just kidding.
Regarding WA, Fuggitaboutit. I’m moving to central Kentucky. I’ve had it with this cesspool. I want to be on my own relatively self sufficient and secluded acreage when this stuff gets ugly.
I can’t decide whether I should call it Gault’s Plateau or Copperhead Road.
Under that plan, drilling would be allowed from an existing rig off the Santa Barbara coast, generating about $1.8 billion in revenue over time. The proposal, opposed by many conservation groups, would be the state’s first new offshore oil project in more than 40 years.
Illegals (who don’t have fake SS cards) can’t get welfare— you have a very minor point there.
But welfare was one of three items he listed, including medical care and other social services. To that list I would also add education for illegal kids and incarceration for illegal criminals— among many others.
Care to respond to THOSE items? Or are you just interested in parsing words?
You can buy all the false I.D. documents you want for about $500-$1000.
You can buy all the false I.D. documents you want for about $500-$1000.
If you want to refuse illegals from getting an education make it unlawfully to do so.
People who are here lawfully LIE to get benefits too.
You can buy a fake social security card and use to get welfare. You get caught.
Beyond me how they can cut services to Americans and still spend millions on illegal aliens.
(yawn)... Yet another story filled with nothing but meaningless garbage.
Isnt it amazing the way the scumbag politicians and their press allies hide the actual budget numbers? I tried Google and got nowhere, and God knows its not going to be in the alleged reports that come out of California newsrooms. Or even Newsmax, apparently.
Two questions which should easily be answered are:
1) What is the total $ number of Californias budget this year?, and
2) What was the total $ number of Californias budget last year?
Do the subtraction, get the actual $ number of cuts.
This should be basic, readily available information, yet its not (probably because they dont WANT anybody doing simple arithmetic). Its pathetic.
“If you want to refuse illegals from getting an education make it unlawfully to do so.
People who are here lawfully LIE to get benefits too.”
You’re here to parse words, create drama and get a rise out of people. Fine.
But you have nothing useful to say, or ideas to promote. There are a LOT of people working hard in this state already to try to make it more difficult for liberals to give our money away to illegals. Your terse response of “just make a law” does nothing to address the issue.
Illegals take jobs, cause problems, pay little or no taxes and take resources when they shouldn’t even be here at all. It’s a problem and the solution is not an easy one, but your obtuse input is not welcome.
Then don’t respond to my posts. Everything I said in this thread is lawfully correct.
Where ya been?
California voted for that with prop 187, woulda denied most all tax paid benefits to illegals...It won BIG, overwhelmingly....The Fedgov, along with their state government co-conspirators burned our ballots and declared our free election illegal...It was an historic intrusion of government....
Where were you?