California in the Red

Bogh Notes sacramento | 05/06/02 | Russ Bogh

[Robert357]

You could be right that $6 billion is all Wall Street would go for. I think that there is another questions

Controller Connell estimates that this RAW will be between $10 and $11 billion, and may be repaid during the latter half of fiscal year 2002-03.

Let's see, there is a growing deficit of from $20 to 22 billion, but they need to pay off $6 billion in warrants as well so they can make it through the fiscal year. So that makes a total of ........$26 to 28 billion. Did I do the math right or does the $20 to 22 billion inlcude the warrants?

[d14truth]

Our mess slows deregulation elsewhere

"It is the California model that has failed, not the principle," Elizabeth A. Moler, former chairwoman of the Federal Energy Regulatory Commission and now senior vice president of the Exelon Corp. power utility, said at a recent conference in Washington."

Also, remember that Elizabeth A. Moler was also acting Secretary of Energy, Deputy Secretary of Energy, and subsequent to that, highly paid ENRON lobbyist in violation of Clinton's 'no lobbying' executive order.

Now, what common grounds does our governor share with Ms. Moler?

[Ernest_at_the_Beach]

26 to 28 Billion? --

How are the Democrats going to escape their fate of being the responsible party for the debt?

I know -- lie like HE double L.,

[snopercod]

The article speaks of a "$20 billion shortfall", but the numbers in Connell's press release are much smaller. I think that the difference is the $13 billion that the State loaned the DWR to buy electricity.

• $5.7 to pay off the RAN from last year
• $0.843 defecit for fiscal 2001
• $4.6 defecit for fiscal 2002
• $13 billion for electricity purchases
• TOTAL: $23.443 billion

So a bond of $6.4 plus a RAW of $11 billion won't be nearly enough. Yup, you did the numbers right.

[snopercod]

Good analysis, but in Kali's case, I think cutting regulations is more important than cutting taxes.

Davis would never do that, but maybe Simon will.

[snopercod]

nobody wants to elect someone who claims the party is over, but it's a fact.

Perot made a pretty good showing with his little charts and all...

[snopercod]

Very good point on the earthquakes and fires. Thanks for adding that.

[Robert357]

Thank you for the details. You obviously understand this. So if they issue 6 billion in warrants to tide them through this year that 6 billion would be on top of the 23 billion that needs to get paid off next year.

Does that mean then that Davis and the legislature are looking at something in excess of 23 billion (by how ever many years they decide to pay off the 6 billion)?

[Robert357]

How are the Democrats going to escape their fate of being the responsible party for the debt? ...... I know -- lie like HE double L.,

I think you just explained to me why the whole Enron, Enron, Enron chant has been resurected by the Democratic party at a national level. California is in trouble and Congressional seats in California could be important, plus they want Davis to remain in office. The Democrats need something, anything to try to save California. The only thing they can try to get a handle on is Ernon.

If Democrats handled this responsibly they would have to face reality and destroy relations with some constituency group during an election year. They can't do that so they have to find a Republican sounding boogie man that forced such action upon them. It will be Republicans and Enron that force the buget cuts in schools, social services and government employee unions! This will be an election in California of class warfare and the big lie. The re-election speeches on the California Assembly floor during budget debates should be something to behold.

This Enron thing being played across the media is not about Enron, it is not about Bush, it is all about saving the Democratic party in California. If it harms Bush that is great, but the main purpose from a national perspective is California and not Bush.

[eureka!]

"This Enron thing being played across the media is not about Enron, it is not about Bush, it is all about saving the Democratic party in California. If it harms Bush that is great, but the main purpose from a national perspective is California and not Bush."

Yep. To prove your point, the Clymers at the NY Times last week ran a couple Demron/Grayout articles blaming Demron for California's woes. When the East Coast fishwraps are running campaign pieces for Grayout, you know they are worried. GoSimonGo...

[John SBM]

The newest Re-Elect Davis Bumper Sticker

[Ernest_at_the_Beach]

By way of contrast Davis has had no comparable disasters in his term as Governor even having the luxury of a huge surplus as late as last year.

Davis didn't need any disaster.
He was able to create one with a little help
from his friends in the legislature and elsewhere !

LOL!

See this for some history:

'Worst yet to come in state's power woes, experts say'(What Gov. Davis knew and when he knew it)

[Ernest_at_the_Beach]

Thanks for the link!

[John SBM]

Glad you liked it!

[snopercod]

It will be Republicans and Enron that force the buget cuts in schools, social services and government employee unions! This will be an election in California of class warfare and the big lie.

Yup, as usual, we FReepers have caught on before anyone else. From this thread of a few days ago"

To: Liz

Sometimes I sits and thinks, and sometimes I just sits.

But I think I have this all figured out:

This "Get Enron" media hysteria is just an attempt to divert attention from the upcoming bankruptcy of California. I'd bet money that Lehane and Fabiani are still secretly working for Davis.

Mark my words. Later this month, or early next, when California State employee paychecks start to bounce, Enron will be the culprit.

If you re-read the article, you will find that Davis is already setting the stage for this - blaming Enron for the recession in California. He will blame Enron for the upcoming bankruptcy, too.

You heard it here first.

29 posted on 5/11/02 4:15 PM Eastern by snopercod
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[Robert357]

Congratulations Snopercod on correctly calling it. I only tumbled to this very recently. It is really nice to share information with you on the Cal Power Crisis as I keep learning a lot.

Now I think that Freepers need to try to do something about it. I for one, have talked to my Democratic congressman's staff and warned him that this could backfire on the Northwest democratic congressional delegation because there is a stronger Cal-ISO connection to Enron corruption than there is to Bush/Cheney. I have also written to several newspaper reporters in this state and in the California press telling them that they are missing the real story by just re-writing democratic party press releases and that the real story of corruption is the Cal-ISO violating FERC rules and federal anti-trust laws by recruiting Enron to game the power market on behalf of the Cal ISO.

Freepers need to come up with an action plan to try to push some reporters to get the real story out.

[John SBM]

I think you may be unaware of how reporters treat the "real story".

First, during an election campaign, anything the Democrat candidate says is the truth, and he/she is just showing the courage to state it openly. And all good reporters know that most of societies problems are the fault of business, religion and evil conservatives. If only the government was free to do more, to move forward, to make progress, this would be a better world. And if a Democrat incumbant is facing problems that occurred on his/her watch, it must be the fault of someone who is trying to undermine their prospects and undercut their efforts.

Conversely, every good reporter knows that the Republican candidates can't be trusted. Every story that includes comments from the Republicans must also include criticism and reaction from the more honest Democrat opponent. Any support for a candidate by a business or religious group must be cited as the right-wing extemists banding together. And of course, any campaign statement speaking ill of a new government program, or of attempts to cut back on taxes and spending must be countered with complete reporting of the terrible consequences.

Of course, I am only basing the attributes of a good reporter on what I see as the best reporting in the biggest papers and media outlets, so I may be glossing over some of the more latent details.

[Robert357]

I understand your frustration with the media, but look at some of the stories that slip out of the newspapes. The Sacramento BEE has been telling a lot of factual stories that are really damning to Davis and the Democratic party. Not all newspapers are the New York Times, the LA Times or the SF Chronical.

[Young Werther]

Hey, no problemo!

They can raise taxes and everything will be okay. Utah, Nevada, and Arizona are waiting with open arms for the industrial out-migration.

Then there will be no energy crsis and the California Kooks can sit around the campfire and sing "Kumbaya"!

[snopercod]

It's good to see somebody intelligent such as yourself come to the same conclusion as did this humble native-Californian-turned-hillbilly.

Yes, we need to get the word out. I already wrote Rebecca Smith of the WSJ, but she hasn't (and probably won't) answer.

I do owe the WSJ a scathing letter on this, though. Most of the time they are better than they were last week. The articles they printed were almost word for word copies of those in the NYT.