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Posted on 05/07/2003 3:25:33 PM PDT by NormsRevenge
SACRAMENTO - The Davis administration has drafted plans to create a new state authority that would issue bonds to help bail California out of its budget troubles and then increase the sales tax by half a cent to repay those bonds.
The plan, parts of which were shared privately with major Wall Street firms last month, is modeled after the one that kept New York City solvent in the 1970s. It would pay off much of California's current deficit this year, then repay that loan over several years.
By creating a separate entity to raise those taxes and issue those bonds -- the administration estimates they will amount to at least $8.2 billion -- officials hope to demonstrate that the money should not be subject to Proposition 98, which requires that a percentage of all general-fund revenue be spent on education. This money would be kept entirely separate from the general fund and would only be used to pay off California's budget deficit for this fiscal year.
(Excerpt) Read more at bayarea.com ...
Another agency that Davis can hire a bunch of his cronies to and pay them $100K each.
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Thank God I don't live in Kali.Present company excluded, of course, Kali residents are kinda like alcholics; they won't do what they need to do until they hit rock bottom. This idiotic idea is just one more step down into the pit.
Davis can scheme seven ways from Sunday. But until he realizes the only permanent way out of this is drastic spending cuts, y'all, unfortunately, are doomed. You have my sympathy.
If I lived there, I'd move, even if it cost me. (FWIW :)
The plan, parts of which were shared privately with major Wall Street firms last month, is modeled after the one that kept New York City solvent in the 1970s. It would pay off much of California's current deficit this year, then repay that loan over several years.This reminds me of the credit counseling ads I hear on the radio: "Are you using one credit card to make payments on another?" And I'd like a definition of "much of."
This money would be kept entirely separate from the general fund and would only be used to pay off California's budget deficit for this fiscal year.
And what sort of slick scheme will he come up with to pay off next fiscal year's deficit?
The plan, parts of which were shared privately with major Wall Street firms last month, is modeled after the one that kept New York City solvent in the 1970s. It would pay off much of California's current deficit this year, then repay that loan over several years.This reminds me of the credit counseling ads I hear on the radio: "Are you using one credit card to make payments on another?" And I'd like a definition of "much of."
This money would be kept entirely separate from the general fund and would only be used to pay off California's budget deficit for this fiscal year.
And what sort of slick scheme will he come up with to pay off next fiscal year's deficit?
Create yet another government entity which employes more well paid state employees. That lowers state spending.
Barrow the money to pay your existing expenses and the expenses of the new barrowing commission. Again a cut in spending.
When the notes come due raise taxes to pay off the principal and the interest. Again a reduction in spending.
Maybe I don't understand the meaning of cutting spending?
For some odd reason, I become more optimistic for the future every day the DemRats delay making Real Cuts in spending.
Even liebral families and heads of households will tire of the games that demRats play to save a few votes here and there.
Who truly wants to go Bankrupt? No one, obviously, but who is truly working towards preventing it?
The Republicans have made proposals and offered to work with the demRats, but the demRats just don;t want to cut the fat and largesse they invested in with other people's money over the last 4 years.
Power to govern is an aphrodisiac few can resist and fewer can pull off doing it well without abusing the system to the point where it is beyond repair.
We are already insolvent, technically. The clock is running.
California has gotten itself into a financially deadly corner. What this means is that the state has core expenditures that the state can't avoid. Almost 50% of the budget is tied up in education and the legal/prison system. These two systems are the fastest growing sectors of our "public" economy.
More pointedly we can complain about liberal policies and the ever increasing number of nutty give-aways that liberals come up with but ending these excesses is not going to solve the core problems.
California is in a downward spiral of an ever increasing propulation of takers (students and prisioners) and an ever decreasing population of net tax contributors.
California can't survive economically until and unless it stops the flight of it's productive and well educated residents and discourages the immigration of the unskilled and uneducated poor from northern Mexico.
The actual and proposed liberal excesses of the traditional saftey nets, welfare and public health care, pale in comparison to the problem that immigration/emmigration are creating in the traditionally acceptable expenses of the state.
Half our budget .. wow!
Talk about Mission Impossible. Until the state and federal officials can develop and implement effective and rational immigration policy and enforcement mechanisms, we are screwed into the foreseeable future.
The next best thing we could do is get the economy going again so we can have a reasonable flow of tax dollars back into the coffers so we can meet the basic requirements and needs of the state and keep it afloat. Getting businesses and the productive residents to stay here can't be done by raising taxes and imposing more fees on businesses and individuals.
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