California: Federal aid unlikely for state deficit. Bush not offering any, Congress reluctant.

Sacramento Bee ^ | Jan 20, 2003 | David Whitney

[John Jorsett]

WASHINGTON -- As California scrambles to adjust to a budget shortfall that could be nearly $35 billion over the next 18 months, Gov. Gray Davis is hoping for some relief from Washington. But President Bush has yet to propose a penny of help, and his economic stimulus plan could deepen the red ink by eliminating federal taxes on dividends, thus making it more costly to sell bonds to pay for schools, roads and hospitals.

[John Jorsett]

What effect do you think California's economic failure will have on the rest of the country?

The California economy is not going to 'fail'. You might think that from the wailing and gnashing of teeth on the part of politicians, but it won't. They're just upset that somebody has taken the punch bowl away from the giant party they were having with our money. California will go through a recession, higher unemployment, fewer government services, etc., but it's certainly not going to collapse.

We'll lose a lot of jobs to other states having lower taxes, lower costs (electricity, for one), and fewer regulatory burdens. This ought to make the eco-freaks ecstatic: fewer jobs, fewer people. At some point, the voters might wise up and elect some more busienss-friendly politicians, which would reverse these trends.

[Bill Davis FR]

$38 BILLION...HOW CAN A STATE GET THAT FAR OUT OF BALANCE?

[Hostage]

Let's see, Cali voters voted overwhelmingly for Prop 187, an initiative that would have curtailed a large amount of spending on illegal residents.

Davis conveniently dumped it.

Cali residents have since shrugged their shoulders and muttered ho-hum.

Typical C.E. (current-era) American reaction, wait until a disaster before taking action, maybe.

[lucysmom]

Also, Davis is responsible for letting prop 187 die. He has absolutely no leg to stand on regarding the cost of illegal aliens.

The Federal Court struck down 187 claiming that it was the Federal government and not the states that had the right to put limits on immigration.

[Snerfling]

The California economy is not going to 'fail'.

The CA economy isn't 1/7 of the country's for no good reason. The core components, inlcuding hi-tech, entertainment, aerospace, tourism and construction are all still here and 2nd to none. The underlying cause of this fiscal crisis is illegal immigration, pure and simple.

There's so much construction going on in Orange County and N. San Diego county, that, if this is a recession, I wonder what it's going to look like when the economy turns around.

The one thing you can never take away is the mountains, ocean/beaches and weather. This weekend was incredible, and for those back east watching the Raider game yesterday, yes, it really was 70 degrees and perfect at kick-off.

People will continue moving here, and business owners will continue starting businesses here, for the simple reason that this is where they want to be. (It's an old cliche about people moving back after a few years trying somewhere else.) Talk of businesses moving to NV, AZ et al typically address low-skilled positions for workers who are already in those states - technically skilled people and decision makers are staying put right here.

[nightdriver]

"By some estimates, there is around $60 billion in losses to the states because of the economic situation and policies of the government," Pelosi said. "Our plan covers about half the losses. We are hopeful that Republicans will listen and remember that everyone is from a state."

Right! And federal taxes come from states too. So why is it any help to send taxes to Washington just so they can take their brokerage fee out of it and send part of them back? The states should stand on their own. It's a socialistic pie-in-the-sky idea that the federal government can bail out a state.

[lucysmom]

Well, for one thing Arizona will benefit from the relocation of California businesses.

Arizona is having its own problems and is now debating an increase in property taxes.

[No Truce With Kings]

"Talk of businesses moving to NV, AZ et al typically address low-skilled positions for workers who are already in those states - technically skilled people and decision makers are staying put right here."

Well, Boeing got tired of the California attitude towards business and moved all of their Shuttle operations to Houston. A lot of the Boeing employees told themselves that all they had to do was sit tight, and Boeing would be unable to staff the positions in Houston, and would move things back to CA.

Eighteen months later, the transition is almost complete. Boeing was able to recruit talented, skilled people in Houston to fill the jobs that those unwilling to relocate from California vacated. The California employees who refused to relocate are now mostly former Boeing employees.

This isn't a good time to be an aerospace engineer on the Granola Coast (CA, OR, or WA). Especially if you have the attitude that companies cannot find equally qualified people elsewhere in the country.

[Dog Gone]

The last thing Bush and Congress should do is to bail out California. What we have today is the result of Democrat spending and failed policies. Now, Democrats have to make the hard choices and suffer politically.

In no way should we subsidize Davis's past actions. There is great political advantage in letting California fix its own budget problem.

[lucysmom]

Talk of businesses moving to NV, AZ et al typically address low-skilled positions for workers who are already in those states - technically skilled people and decision makers are staying put right here.

I can't speak about Arizona, but I do know that many businessmen who have relocated to Nevada have regretted it. Common complaints are the difficulty in finding stable competent employees and the negative effects of gambling.

[SCalGal]

And, instead of appealing, like he ought to have done, Davis let that stand. The courts didn't get a chance to kill it; Davis let it die first.

[lorrainer]

Anna, Honey, THERE'S NO MORE MONEY!

I respectfully beg to differ, copycat. There is plenty of money to be had in the well-insulated coffers of the vocal "entertainers" who want to tell you what to do with yours. I am sure Babs, Alec, Sean, Martin, etc., will now line up to put their big money where their big mouths are. They are dedicated to their cause, after all...(/sarcasm). >:oP

[On the Road to Serfdom]

But Democrats don't have the votes to pass their proposal, even though some experts think the kind of aid they are seeking is just what the national economy needs.

"some experts" think it is what we need and it STILL does not pass? The gall of the Rebublicans amazes me.

[daviddennis]

The obvious solution is to reduce the cost of incarceration by cutting the increase he just gave to the prison guards union. Prison shouldn't cost as much to run as a decent motel.

We need to privatize the prisons, and of course Davis just promised to the guards' union that this wouldn't happen. This might be good old fashioned pork barrell politics, but it's lousy economics.

D

[VeniVidiVici]

The Federal Court struck down 187 claiming that it was the Federal government and not the states that had the right to put limits on immigration

But Davis could have pursued an appeal and didn't. The Davis administration dropped its appeal in 1999 after a compromise with the pro-illegal immigration groups that would, "agree(d) to permit its provisions (to become law) that make it a state crime to manufacture and distribute false documents".

Gee, sounds like the legal citizens of KA who voted for Prop 187 got screwed over for sure on that one.

[Ernest_at_the_Beach]

Could not get connected till 2:00 PM today, Cable is great when it is working though!

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[snopercod]

The federal government has no business bailing out CA.

Neither do they have any constitutional authority to do so. (Not that has been an impediment in the past.)

Thank you for getting to the heart of the matter.

[Grampa Dave]

Now we are seeing step number one in blaming the deficit on the evil and vile GW and the equally evil and vile republican controlled congress.

Articles like this one will start to dominate the left wing media now that they have informed the sheeple that there is a deficit. (Which was ignored until after Herr Davis, the great deficitor was re elected!)

Now GW, Congress and the rest of the country will blamed for what Herr Davis and his tax and spenders have done to Kalifornia.

[Flashman_at_the_charge]

Voters in California must like this form of government.

Hardly.

[Lancey Howard]

If Congress was to send money to California, that would include MY money, and I live on the east coast. Therefore, I would be subsidizing California's scumbag Democrats who have been spending (vote-buying) like drunken sailors on shore leave for the past five years.

I better not find out my Representative or Senators would agree to send my money to socialist, scumbag Democrat-controlled sewers. Let those stinking states go under for all I care.