California is almost out of ways to pay bills, fund programs, controller says

[babylonsister]

California is almost out of ways to pay bills, fund programs, controller says
By Steve Wiegand
[e-mail]
Published: Sunday, Jan. 25, 2009


This is what life was like the last time California government had at least as much money in its coffers as it was spending on a daily basis:

• The leading presidential campaign contribution collector in the Sacramento metro area was GOP contender Mitt Romney.

• Baseball slugger Barry Bonds was 26 days from setting the all-time home run record.

• "Harry Potter and the Order of the Phoenix" had just set a one-day box office record for a film opening in midweek.

• The Dow Jones industrial average was at 13,861.

It was July 12, 2007, and since then California has been living on borrowed money.

As in $21.5 billion worth of borrowed money, according to state Controller John Chiang: $16.5 billion borrowed from some of the state's 1,000-plus special funds, plus $5 billion in "revenue anticipation notes," which are basically money borrowed from private investors.

But, Chiang, whose office writes the state's checks, says California is about out of stopgap tricks to pay its bills and keep all its programs running.

more...

http://www.sacbee.com/topstories/story/1571316.html

[Warren Stupidity]

1. As is just about every other state.

And unlike the fed, they can't just go issue t-bills to pave it over. So there is a shitstorm of layoffs coming as the 50 states start doing the only thing they can do to deal with their funding crisis.

I don't understand why the stimulus bill does not include block grants to states to help them avoid massive layoffs.

[babylonsister]

2. Did you watch 60 Minutes tonight?

I thought they got some last-minute help in Ohio. But that was never explained either, considering the stimulus bill hasn't been approved.

[dsc]

4. unemployment insurance has always been backed by the feds

if a state runs out of money. That is what Ohio did. In the future they will have to pay back those funds when they are back to being solvent.

[Warren Stupidity]

5. that's unemployment insurance

which has a system in place to help keep state funding solvent. I'm talking about the massive layoffs of state civil service workers - teachers, police, fire, healthcare workers, clerks etc. which are going to happen over the next few months unless there is some remedy. Those layoffs in turn will further suppress consumer demand, increase foreclosures and kick the economic cycle further down whatever hole we are in.

[4 t 4]

3. You can add Ohio to that list

on 60 minutes they said they got emergency funding from the government already. They are out of money too.

[liberalhistorian]

7. It hurts me to say this, as I was Ohio-born and raised and

was there for most of my life until just a few years ago, but I'm really glad that I moved to South Dakota a few years ago and never ever want to return. Oh, of course, I go back to see family and friends, but no way will I ever return there to live, for any reason. And not just because I ended up marrying a SD man, either. It was getting bad before I left; in fact, I left for economic reasons, to accept a job since I couldn't find one to save my life in OH despite months of trying. That was the third time in my adult life I'd dealt with that and I was sick of it and there was no end in sight. Now I see that it's ever so much worse and deteriorating almost daily. It was painful to be back there over the holidays and see just how bad it is. And I don't see anything changing anytime soon, maybe for years to come, if ever.

Most of my cousins and younger relatives have already left for other states, as I did, and aren't coming back. The only job growth market is for the damn debt collectrolls and even they aren't gonna be in too hot of a shape, thank God (they should all be run out on a rail and not allowed to return, but that's another thread), 'cause no one has any money for them to take no matter how badly they harass people for it.

I'm truly sorry for those still stuck there who can't just pick up and leave. OTOH, for those who voted for the OH repukes who had tight control of the state for nearly fifteen years, they're getting what they deserve. Unfortunately, everyone else is being taken down as well.

[Cleita]

6. We are still the sixth largest economy in the world. An enormous amount

of our federal taxes go to pay for programs in poorer, Republican led states. I don't think that is wrong. What is wrong is that our stupid Governor and our jelly spined Democratic legislature won't go get the money they need to fix this problem from those economically rich entities that are enjoying opportunities that our state gives them to make money without exacting the taxes they should pay for it.

[ProgressiveProfessor]

10. Its that supermajority thing again

There is some possibility that a few of the repukes will support the required tax increases. If they don't its going to get really ugly. Its not going to be pleasant even when they do get a budget out.

The end around the Dems tried (which was vetoed) would have died in court. They have not tried to resurrect it.

[moobu2]

8. Tax churches

[babylonsister]

9. I live in TX, tons of churches here, but not in such bad shape. I don't

know what the answer is.

[Dont_Bogart_the_Pretzel]

11. Just taxing the churches 1/2 the federal and state tax would generate a lot of revenue.

just saying..

[Hubert Flottz]

12. You mean Arnold didn't fix everything like he promised to do?

Even after he campaigned for Bush in 2004?

[4lbs]

14. The drastic measures he wanted to take to balance the budget was denied by the state senate.

However, his drastic measures would have involved quite a bit of layoffs of state employees and cuts (or even elimination) of many state services.

[Hubert Flottz]

15. One of his first acts was to Quash the ENRON suit...

California Under the GOP & All About
Governor Arnold Schwarzenegger

http://www.yuricareport.com/California/Contents_to_Calif_Under_theGOP.html

[4lbs]

13. That $350 billion in TARP that is still remaining, should mostly just be given to the states.

Divvy it up based on state population. One billion dollars per million people, with a minimum of a billion dollars to a state.

CA would get about $34 billion since there are 34 million people estimated in the state.

With the national population about 300 million, that's around $300 billion that would be sent to the states.