California nears financial "meltdown" as revenues tumble

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California nears financial "meltdown" as revenues tumble

 

SAN FRANCISCO (Reuters) – California's government risks a financial "meltdown" within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

Underscoring the severity of California's cash crisis, Controller John Chiang, who has previously warned the state's government risks running out of cash without a budget deal, said revenues in May fell by $1.14 billon, or 17.7 percent, from a year earlier.

Additionally, the revenues of the government of the most populous U.S. state fell short of estimates in Schwarzenegger's budget plan by $827 million, Chiang said.

He warned California's state government is speeding toward a financial disaster unless officials act urgently to balance its books.

"Without immediate solutions from the governor and legislature, we are less than 50 days away from a meltdown of state government," Chiang said in a statement.

California's revenues have been on a dramatic slide as a result of recession, rising unemployment and its lengthy housing downturn.

The state's revenues from personal income taxes tumbled by 39.3 percent in May from a year earlier while revenues from corporate taxes fell by 52.1 percent and revenues from sales taxes sagged by 7.6 percent, according to a report released by Chiang's office.

"A truly balanced budget is the only responsible way out of the worst cash crisis since the Great Depression," Chiang, a Democrat, said.

 

 

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June 30, 2009 11:15:31 AM from JoeUser Forums JoeUser Forums

Don't worry Barney Frank wants to bail them out with money from taxpayers in states that can manage their affairs.

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June 18, 2010 7:01:43 AM from JoeUser Forums JoeUser Forums

It is nice to know that this budget gap is almost covered now and budget is balanced. I was really scared when there was a risk of financial meltdown in the last year. Of course such a risk was not only in California. It was in other states too and in other countries for sure. I had even to take cash payday advance to pay off my debts. Everything just because some people weren't clever enough not to take those huge loans which they can't pay off. Let's just hope that financial crisis had almost gone and our life will return to the normal stage again.

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June 18, 2010 8:08:10 AM from JoeUser Forums JoeUser Forums

Quoting Nitro Cruiser,
Don't worry Barney Frank wants to bail them out with money from taxpayers in states that can manage their affairs.

I know he wants to, but there are 39 states out there about ready to tell the federal government to go to hell.  Those are the states that made the tough choices, cut until it hurt and have their house in order.

The dancing queen and nostrilitus better keep their greedy little paws off those states or this will be the year that makes 1861 look like a minor skirmish.

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June 18, 2010 9:44:23 AM from JoeUser Forums JoeUser Forums

Well, you have the right to stage a revolution, but before you do that, you might want to make sure you have a sufficient supply of anti-tank weaponry, because I can guarentee you that the federal government will have no problem driving a tank through your house in the process of grinding your state into submission. You might want some AA weapons too, unless you manage to get an entire air force base on your side along with the planes, pilots, and maintenence crews that go with it. Then you run into the problem of, assuming the revolution lasts long enough to need them, purchasing the raw materials needed to manufacture or repair tanks, planes, ships, and heavy weapons, and assuming you have had your coastlines blockaded, getting them into the country. I'd build up a stockpile before the war, because the first thing I'd do would be blockade the Mexican and Canadian borders, and set up air patrols to keep airdrops out. And of course, assuming the US won, and the rebellion imported through Mexico or Mexican airspace (can't use Canada because of this silly little thing called NATO), you've given the US valid reason to start expanding south increasing the number of Mexicans in the country. And you know what, keeping the entirety of Mexico as a single state, and the current number of people/representitive in the HoR, Mexicans would make up at least a quarter of Congress, if not more. AND, assuming that the revolution needs the material for any modern fighters, and gets the aluminum needed, you've provided a valid reason to invade Brazil, Venezuela, Argentina, China, Iran, at least one of the stans, and parts of africa, depending on where it came from, making "big" government even more necessary, if not advancing the cause for a unified world government (shock... awe...)the biggest government possible while we remain confined to one planet. And this is just the worst case scenario where half the country decides to just up and leave at the same time, as opposed to a relatively slow secession of several months like the last time.

Just in case you were wondering, Yes, I have several well thought out plans for this situation, most of them dealing with the annexation of the entirety of South and Central America.

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June 18, 2010 10:29:18 AM from JoeUser Forums JoeUser Forums

Well, you have the right to stage a revolution, but before you do that, you might want to make sure you have a sufficient supply of anti-tank weaponry, because I can guarentee you that the federal government will have no problem driving a tank through your house in the process of grinding your state into submission.

one state rebels - maybe.  39 states rebel?  I am not sure you can call that rebellion as it is a super majority and enough to change the government in Washington  - according to the Constitution. 

And just remember who those driving the tanks are.  The brothers or sons or fathers of the guy in the house.

 

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July 2, 2010 2:35:39 PM from JoeUser Forums JoeUser Forums

It is nice to know that this budget gap is almost covered now and budget is balanced.

Bernard I wouldn't breathe a sigh of relief just yet. CA needs to get its spending under control. Perhaps they should be boycotting much more than Arizona.

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July 2, 2010 3:50:07 PM from JoeUser Forums JoeUser Forums

Perhaps they should be boycotting much more than Arizona.

latest news is they are boycotting a "living" wage.

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July 3, 2010 4:53:25 PM from JoeUser Forums JoeUser Forums

latest news is they are boycotting a "living" wage.

That seems to be the only thing that gets their attention Doc. Maybe now they can engage in some serious cost cutting. They will be back paid their wages anyway.

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July 3, 2010 5:32:09 PM from JoeUser Forums JoeUser Forums

Maybe now they can engage in some serious cost cutting. They will be back paid their wages anyway.

dunno who you mean by "they" but only one of all possible "they"s is empowered/required to compile ca's budget and that group isn't likely to be working for minimum wage anytime soon.  

most likely "they" would be state employees, many of whom have had their work hours/income reduced, who have no role whatsoever in budget preparation, negotiation, reconciliation or approval. 

if meg whitman is as shrewd as claimed, she'll pull enough money from her tv ad appropriation and use it to enhance the state's drinking water supply with one of those date-rape hypnotic drugs that cause memory blackouts.  anyone who remembers:

  • what the current republican governor promised to do vs what he actually did and who he chose to throw under the bus along the way
  • her personal voting (actually non-voting) history
  • her "hands on" management style

is gonna have a difficult time not voting against her even when the alternative is guru brown

just thought of another, slightly less creepy strategy for meg: instead of driving us all nuts with hours of annoying commercials, divide the ad buy money up and  send some cash directly to each registered voter 

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July 3, 2010 6:39:58 PM from JoeUser Forums JoeUser Forums

You saying she should buy votes?  I'm shocked, kb, shocked.

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July 4, 2010 11:13:08 PM from JoeUser Forums JoeUser Forums

instead of driving us all nuts with hours of annoying commercials, divide the ad buy money up and send some cash directly to each registered voter

Not living in CA, I couldn't care less about who spends what on advertising. Money spent will help the local economy. I recommend spring for premium cable or turn the tube off if so offended.

If your from CA KB that would explain many of your comments.

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July 6, 2010 12:33:02 AM from JoeUser Forums JoeUser Forums

I couldn't care less about who spends what on advertising. Money spent will help the local economy.

if you've yet to endure a campaign waged by candidates--both of whom have a million times more dollars than sense--determined to bankrupt each other by purchasing every available moment of air for an entire year, it'll happen there soon enough.

nothin wrong with california that won't eventually be shaken out. . 

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July 6, 2010 11:22:18 AM from JoeUser Forums JoeUser Forums

nothin wrong with california that won't eventually be shaken out. .

1. Democrat Assembly.

2. Grey Davis (got them into the mess).

3. Lack of new blood (Candidate Jerry "Moonbeam" brown?)

4. Amoebas for senators (I earned the right to be called Senator, Mr.! - Boxer).

5. $19 billion Deficit, spending $25 billion on Illegals.

It is going to take the San Andreas waking up and finally saying enough to shake that morass up.

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July 7, 2010 5:44:09 PM from JoeUser Forums JoeUser Forums

Quoting Dr Guy,

nothin wrong with california that won't eventually be shaken out. .


1. Democrat Assembly.

2. Grey Davis (got them into the mess).

3. Lack of new blood (Candidate Jerry "Moonbeam" brown?)

4. Amoebas for senators (I earned the right to be called Senator, Mr.! - Boxer).

5. $19 billion Deficit, spending $25 billion on Illegals.

It is going to take the San Andreas waking up and finally saying enough to shake that morass up.

Agreed with the exception of #2, sure he was a big part of it, but Arnold owns it now (with the Democrat Assembly) and it's just getting worse. Nobody is willing to to take the unpopular, but prudent, stand.

#5 would sure take the sting out of the pain to come, but they choose to boycott AZ instead. I sure hope they are ready to cede power to junta when the time comes and their past actions mean nothing.

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July 8, 2010 8:16:42 AM from JoeUser Forums JoeUser Forums

Agreed with the exception of #2, sure he was a big part of it, but Arnold owns it now (with the Democrat Assembly) and it's just getting worse. Nobody is willing to to take the unpopular, but prudent, stand.

I should have added that Arnie has not done any good by it, but then with that Assembly, the best any conservative could hope  for is a draw (Arnie seems to be moving to concede).

I sure hope they are ready to cede power to junta when the time comes and their past actions mean nothing.

All things considered, maybe we should give California back to Mexico as punishment for sending all the illegal aliens to the US?

nahhh!  We would get nailed by the international community for Cruel and Unusual punishment.

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July 12, 2010 12:30:54 PM from JoeUser Forums JoeUser Forums

All things considered, maybe we should give California back to Mexico as punishment for sending all the illegal aliens to the US?

It would almost be worth it to see the look on Mayor of SF, Pelosi, and Boxer's faces, as the Mexicans run them out of town. I'd revoke their citizenship and deport them back to California if they tried to enter the US. Ah, one can dream. LOL

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September 21, 2010 10:51:23 AM from JoeUser Forums JoeUser Forums

WARNING>Don't click on the links in FrankS88's posts - highly likely they are vectors for malicious software.

EDIT:  By time I posted this, the admins had deleted them.  Thanks, admins!!

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September 21, 2010 10:52:36 AM from JoeUser Forums JoeUser Forums

Quoting Daiwa,
WARNING>Don't click on the links in FrankS88's posts - highly likely they are vectors for malicious software.

Thanks for the tip!

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December 13, 2010 11:06:57 AM from PoliticalMachine Forums PoliticalMachine Forums

Thanks I was just going to click that...in the mean time I got to read your message of not to click on that...thanks

cash advance

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December 14, 2010 12:59:19 AM from JoeUser Forums JoeUser Forums
Hmm. I think I'd avoid that 'cash advance' link, too.
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December 14, 2010 9:02:20 AM from JoeUser Forums JoeUser Forums

Quoting Daiwa,
Hmm. I think I'd avoid that 'cash advance' link, too.

Kind of funny though that an article about California's problems are attracting the hucksters!  They would get a better return conning California!

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March 18, 2011 7:04:09 AM from JoeUser Forums JoeUser Forums

If California falls apart, it's their own fault. The theory of representative government is that the public elects someone to use his or her judgment on issues, theoretica­lly taking a long and informed view. Of course, plenty of representa­tives don't do that. But to replace that system with one where the public makes all the decisions directly, most likely ill-inform­ed and acting on emotions of the moment, you likely get laws that cause a trainwreck down the road. As for the Republicans, they are already going to oppose the offer that has to be approved by the Congress to become a law. The other two measures are aimed to influence the taxes paid by the employers in order to assist the unemployment system. One offer was provided to delay the increase of federal unemployment taxes for two years as they are used for covering the principal of the installment loans. The other offer is in fact rather controversial as it claims for raising the level of workers’ wages subject to federal unemployment tax up to $15,000 in 2014, comparing with the current $7,000. The trick is to elect good people and let them do their job. But here's the conundrum: if the public were smart enough to elect good people, they might also be smart enough to do the right thing themselves­. So I guess it comes down to this: ignorance does not bring bliss. 

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