Posted on 08/12/2009 8:40:24 PM PDT by Steelfish
California Has Amassed A Mountain Of Debt
By Dan Walters Aug. 12, 2009
What, one might ask, is the appropriate metaphor for California's convoluted budgetary situation?
Would be it be Enron, which cooked its books to fool investors and lenders? Perhaps a Third World country whose rulers run up a mountain of debt while squandering revenues? Or both?
Whatever it may be, years of irresponsibility by politicians and voters alike have left California with ongoing spending obligations that are nearly 50 percent higher than its ongoing revenues – roughly $110 billion a year in the former and $75 billion in the latter – and debts that would be daunting even were the economy to improve dramatically.
(Excerpt) Read more at sacbee.com ...
...and the unions want more and more. Should have heard one of the represenatives from SIEU. You would not know the state had a hugh and series budget problem.
We miss the late great state of California.
SIEU looks like it does not comprise people, but rather droids and lemmings. A mass Darwin award is coming soon to them methinks?
California’s biggest problem is their 2/3 majority vote requirement to raise taxes. Were it not for this, the politicians could get enough to solve all of California’s problems. /s
If the idiots in the former great state of California would just lower taxes (obviously raising them hasn’t worked), they would emerge triumphant. Basic logic … if your choices are A or B and A doesn’t work, try B. Dumb Asses!
As the largest state, does California’s decline foreshadow America’s? How long until the liberals bankrupt the whole country.
The NEW ballad of Jed Clampett
Come and listen to a story ‘bout a man named Jed
Poor oil entrepreneur barely kept his family fed
Then one day he was working for some food,
And up through the crowd come a bumbling fool
(Arnold that is, RINO gold, more taxes please)
Well the first thing you know old Jed’s taxes are to much to bear,
Kin folk said Jed move away from there!
Said California is no place for you to be
So they loaded up the truck and they moved from Beverly
(go’n back to the Hills they are, fish’n holes, country and western stars)
Well now it’s time to say goodbye to Jed and all his kin
They would like to thank you folks for kindly dropping in
You’re all invited back again to their new locality
To have a heaping helping of their hospitality
(Redneck Hillbillies, is what the press call ‘em now,
Clingers of bibles and guns and to Obama no bow!
Nice folks Y’all come back now, ya hear?)
CA is about 13 per cent of the US economy. The country as a whole greatly trumps CA on debt even if CA is left out of the greater consideration. The erosion of tax bases of all the states undermine and render quite erroneous fiscal planning of the current administration. Deficits for CA and the US are going to grow more than advertised. Addition of further taxes nationwide will widen the gap between debts and receipts. Watch out below.
Yeah, how’s that generation of a liberal majority in Sacramento working out for you, Cali?
So schizophrenic. Can’t raise taxes. Can’t cut spending. Deer in the headlights look.
Could ANYTHING head off a decline-and-fall-of-the-Roman-empire scale pratfall at this point?
My ability to wallow in schadenfreude is tempered by the reality of America’s financial condition as a whole. Damn, that would have been some sweet schadenfreude.
I sorta half think he DOES know. And relishes the idea in his little self-loathing noggin.
think globally act locally ... ?
The joke of it is that they have more untapped oil than anyone. They won’t drill for it. Well, they did agree to allow one company go forward. But there is plenty more if they would just go after it.
They won’t, which means they haven’t hit bottom yet. When they finally hit bottom they’ll be ready to listen to reason.
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