California: State paying the price for good times in '90s

The San Jose Mercury News ^ | Sun, Jan. 19, 2003 | Mark Gladstone

[Ernest_at_the_Beach]

SACRAMENTO - You might say the road to California's budget mess begins in the fashionably remodeled home of a Sunnyvale computer chip engineer and his wife, a public-relations executive, who fattened their paychecks and portfolios in the good economic times.

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[Support Free Republic]

Put a smile on your face, donate to FR today!

(Thanks Chance33_98 for the ad)

[2banana]

One set of tax-collection figures stands out from 2000 at the height of the boom: Just 44,000 taxpayers with incomes higher than $1 million -- a tiny fraction of the state's 8.8 million taxpayers -- paid $15 billion in taxes, or 19 percent of the state's general operating fund.

I wonder how many of those 44,000 have done the Atlas Shrugged boggie to lower tax pastures?

[hoot2]

"In between, the road winds through the corridors of the state Capitol, where politicians saw an opportunity in the boom years to improve long-neglected public schools as well as to boost health and welfare spending. "

tripe...
every election we get more bond issues for the "long-neglected public schools"....which are "over-flowing" with mexicans...
impeach gray dufuss??? we tried twice...kalifornican's are too busy, with more important matters...
hold onto your $$$, real estate prices will be a "bargain", in a year or two....if you speak spanish

[Ernest_at_the_Beach]

I wonder how many of those 44,000 have done the Atlas Shrugged boggie to lower tax pastures?

It's coming!

[glorgau]

"If there is money available, there will be great pressure from both Democrats and Republicans to spend it. The Republicans will insist on tax reductions, and Democrats are likely to insist on additional funding for education, health and welfare."

Amazing. A tax reduction is spending. With that logic, all money belongs to the state and any expenditure public or private is counted on state ledgers.

When people say these things, do they actually realize what they are saying?

[robertpaulsen]

So Davis "shrugged off" his role.

Well, if they would have "spent" the money the Republican way by returning the surplus instead of "spending" it like drunken sailors the Democrat way, there would be no deficit.

Shrug that, Mr. Davis.

[BenLurkin]

Ah yes, 1990s: The Decade of Greed

[gitmo]

The budget woes are compounded by the Legislature, whose makeup is much more transitory than before voters in 1990 imposed term limits of up to six years in the Assembly and eight in the Senate. Legislators don't have the institutional knowledge about arcane provisions in the tax code. In fact, more than 30 members of the 80-member Assembly expected to help Davis solve the problem were elected just last November.

Maybe the problem isn't the term limits, but rather the 'arcane provisions in the tax code'. A flat tax rate would be a financial boon.

Atlas Shrugged: How can businesses stay in a state with skyrocketing taxes, a failing energy infrastructure, an unreliable water supply, and an overwhelming illegal immigrant problem?

[Gritty]

other forces at play besides the stock-market collapse... those most often cited are the ailing national economy; the added cost to fight terrorism and a downturn in tourism in the wake of Sept. 11; tax breaks on farm equipment, such as tractors; and the rising cost of energy paid to out-of-state generators.

Interesting the writer lists the "energy" fiasco behind "tax breaks on tractors" as dead last, when it should be dead first! No doubt the writer trying to "hide" something nasty?

Asked if he wished he could have done something differently, Davis last month shrugged off his own role

Unbelieveable!... simply astounding!! Davis "shrugged off" his own culpability...!

(Davis said) "...The Republicans will insist on tax reductions, and Democrats are likely to insist on additional funding for education, health and welfare.''

So, which is better? If you give it back, when it isn't there to give back, there is no deficit. On the other hand to additionally fund the ubiquitous welfare programs only makes them larger and more intractable during revenue contraction.

Davis is a fool, but the writer is aiding and abbetting his crimes!

[Ernest_at_the_Beach]

Speaking of the energy crisis out here , you might find this interesting:

New energy lessons from the last crisis in California

[Regulator]

where a veteran public school teacher is trying to teach English to the bright-eyed 6-year-old son of Mexican immigrants illegal aliens

Davis could have avoided about $12 billion of his current problems if he had simply let the will of the citizens be implemented under proposition 187.

But, since he decided to be a dictator, and tore up the legitimate vote by not appealing it, he gets to reap the consequences.

May he go down with the ship of state that he sunk, and let history judge him for what he is: the Worst Governor in California history.

[Freedom_Is_Not_Free]

I must have been reading this too fast. I agree that the Liberals just plain overspent. But I didn't see one word about the 10 billion that Davis through at the phony, fraudulent energy crisis (which he profited from, no doubt.)

If this was mentioned in the article, could someone please point me to it?

[JSteff]

Considering that the Dems have ruled California the whole time thi could be a bigger bonanza than we think. Wouldn't it be nice to see California tank economically just in time for the next major election. Cycle.
Might be beautiful for us.

[Flashman_at_the_charge]

I’m hoping that California will be a prodigal son to conservatism.

[JSteff]

Then again, do we want them back at all?

[Flashman_at_the_charge]

I do, but I'm biased since I live there. :-)

[Hank Rearden]

"I wonder how many of those 44,000 have done the Atlas Shrugged boggie to lower tax pastures?"

It's coming!

Nonsense. It's happening. I left in early '95, have never looked back, and was one of many even then. Now my thinking is oriented to encouraging remaining family and friends to get the hell out before the really big crunch that's coming.