Taxpayer Anger Builds Over Budget Chaos as deficit grows. Calif. prepares to issue IOUs
Igor The Terrible
banks, wall street, free traders and the shit for brains federal
government:
WTF? Why aren't you sending MORE jobs and investment dollars
offshore? Are you crazy? Our GDP is soaring to terrifying heights
and the federal government is drowning in revenues!!! Get back to
your nation building, outsourcing, foreign investments, and by all
means hide your profits--and pocket as much as you can get away
with.
Have you forgotten already? Greed is good!!
LMAO!!!
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Associated Press Writer Samantha Young, Associated Press Writer
SACRAMENTO – California's controller will start paying many of the
state's bills with IOUs as soon as Thursday after lawmakers failed to
close the state's worsening budget deficit, adding a new measure of
indignity to a state sinking deeper into dysfunction.
Lawmakers' failure to act on Tuesday, the end of the fiscal year, also
widened California's deficit from what already had been a whopping
$24.3 billion — more than a quarter of its general fund.
The failure to balance the state's main checkbook and the looming IOUs
prompted Gov. Arnold Schwarzenegger on Wednesday to declare a fiscal
state of emergency.
Under the declaration, state offices will be closed three days a month
to conserve cash. If the Legislature fails to solve the deficit within
45 days, it cannot adjourn or act on other bills until the crisis is
resolved.
The partial government shutdown also will lead to a third furlough day
for 235,000 state employees, bringing their total pay cut this year to
about 14 percent.
"California needed the Legislature to act boldly and with conviction.
Their response was not a solution to California's budget problem but
an invitation to actually a bigger financial crisis," Schwarzenegger
told reporters Wednesday.
On Tuesday, as the previous fiscal year was drawing to a close, the
Senate rejected three bills designed to save $5 billion, including
$3.3 billion in education funding cuts that had to be enacted. Passing
those bills would have given the Legislature time to work out a
broader solution to the deficit and delayed the need for IOUs.
Instead, the budget shortfall is set to grow even wider because of
California's complicated school funding formula, meaning the state
will not have enough money to pay all its bills.
State Controller John Chiang said his office is prepared to issue IOUs
totaling $3.3 billion in July.
Senate Minority Leader Dennis Hollingsworth said neither he nor his
Republican colleagues wanted to see California resort to IOUs to pay
its bills, but he said Democrats had refused to make sufficient
spending cuts to solve the shortfall.
"It's unfortunate that we're at this point," said Hollingsworth, a
Republican.
It will be the first time since 1992 that California will have issued
IOUs. The move is almost certain to further damage the state's credit
rating, already the lowest of any state, saddling taxpayers with
billions of dollars in higher interest payments on bonds that have yet
to be sold.
Issuing IOUs — formally referred to as individual registered warrants
— also will have real-world consequences for those on the receiving
end. Small businesses that rely on state contracts will be most
affected.
"It really doesn't affect the million-dollar companies. It's the
smaller ones that will get hit," said Paul Nguyen, director of Care
Now Staffing, a Southern California company that employs a dozen
medical professionals.
The IOUs also will be sent to California counties, which now must find
other ways to fund a wide array of social programs, ranging from
alcohol abuse and mental health treatment to services for the elderly
and disabled. California's universities were evaluating ways to assist
students whose grants will not be funded to pay education expenses.
It was unclear whether some of California's largest banks will accept
the state's IOUs as payment. They would be paid back, with interest,
but the state's precarious financial condition and legislative
gridlock might be making some bankers nervous.
Bank of America announced Wednesday it would cash the IOUs for its
customers through July 10, bank spokeswoman Colleen Haggerty said.
Schwarzenegger and state officials asked other banks to do the same,
noting that California has never defaulted.
"We will make those payments," he said. "We are responsible."
___
Associated Press Writers Judy Lin, Juliet Williams and Jared Grigsby
contributed to this report.
Old Pif
<igor_the_terri...@mad.scientist.com> wrote:
>
> It was unclear whether some of California's largest banks will accept
> the state's IOUs as payment. They would be paid back, with interest,
> but the state's precarious financial condition and legislative
> gridlock might be making some bankers nervous.
>
> Bank of America announced Wednesday it would cash the IOUs for its
> customers through July 10, bank spokeswoman Colleen Haggerty said.
> Schwarzenegger and state officials asked other banks to do the same,
> noting that California has never defaulted.
>
> "We will make those payments," he said. "We are responsible."
>
In other words: "We will be back ... with money". May be not. Where
California got them? Everything has been outsourced.
John Galt
THey could drill offshore. They're sitting on the solution to their
fiscal problems.
JG
Michael Coburn
That's OUR oil. Not just California's oil.
--
"Those are my opinions and you can't have em" -- Bart Simpson
phil scott
>
> - Show quoted text -
same with natural gas in north america, its a vastly larger energy
reserve than
the entirely of saudi arabia... there is a lot of funny business going
on here.
that said, we do have serious issues with out sourcing etc...if thats
not fixed
any other cure will be temporary...it is work done here that brings
our kids along
and makes the nation hard working and productive.
Phil scott
John Galt
JG
phil scott
>
> - Show quoted text -
yes its your oil also, but it is california that will *sell it to
you... those oil guys are just
waitng for the price to quadruple.
Phil scott
Bret Cahill
> > >> the state's IOUs as payment. They would be paid back, with interest,
> > >> but the state's precarious financial condition and legislative
> > >> gridlock might be making some bankers nervous.
>
> > >> Bank of America announced Wednesday it would cash the IOUs for its
> > >> customers through July 10, bank spokeswoman Colleen Haggerty said.
> > >> Schwarzenegger and state officials asked other banks to do the same,
> > >> noting that California has never defaulted.
>
> > >> "We will make those payments," he said. "We are responsible."
>
> > > In other words: "We will be back ... with money". May be not. Where
> > > California got them? Everything has been outsourced.
>
> > THey could drill offshore. They're sitting on the solution to their
> > fiscal problems.
>
> > JG- Hide quoted text -
>
> > - Show quoted text -
>
> same with natural gas in north america, its a vastly larger energy
> reserve than
> the entirely of saudi arabia... there is a lot of funny business going
> on here.
>
> that said, we do have serious issues with out sourcing etc...if thats
> not fixed
> any other cure will be temporary...it is work done here that brings
> our kids along
> and makes the nation hard working and productive.
Our future is much like Bernie Madoff's.
Bret Cahill
"No liberty, no life."
-- Jefferson
phil scott
>
> - Show quoted text -
dang...Ive heard a lot worse idea's... you would cool off death
valley faintly, so it could be used as
living space and provide billions of tons of bio fuel, and probably no
dirth of farmed catfish..
.water could be an issue though, unless we ran our municiple effluent
over there.. much of that is close to or exceeding drinkable
standards.
Phil scott
-=DirtBag©
Oh.. Lets not get all technical! The Arnold called dibs first.. or was
that Gov. Wilson?
We NEED that money. We have many Many MANY high dollar salaries for
doing next to nothing.. that need to be paid.
Besides .. As goes California.. Goes the USA. Dig?
John Galt
Well, I can tell you (because I have a koi pond in my backyard) that the
easiest thing in the world to grow is algae. :-(
JG
Michael Coburn
Won't work very well. On guy form one of the universities said we should
build a canal across the Senora panhandle to bring water from the Sea of
Cortes. Really stupid. Just do the deal in and around the Sea of Cortes
and pipe the stuff back. It will still cost $10 a gallon at the pump.
Old Pif
>
> .water could be an issue though, unless we ran our municiple effluent
> over there.. much of that is close to or exceeding drinkable
> standards.
>
Should be recycled like in space station: piss->recycle->drink-
>piss ....