Tuesday, May 11, 2010

Here We Go, The Crisis Moves to California: $18.6 Billion Budget Deficit

California Governor Arnold Schwarzenegger will seek “terrible cuts” to eliminate an $18.6 billion budget deficit facing the most-populous U.S. state through June 2011, his spokesman said, according to  Bloomberg.

“We can’t get through this deficit without very terrible cuts,” Schwarzenegger spokesman Aaron McLear told reporters in Sacramento. “We don’t believe that raising taxes right now is the right thing to do.”

In January, the governor said California may have to eliminate entire welfare programs, including the main one that provides cash and job assistance to families below the poverty line, without an influx of cash from the federal government.

California has the lowest credit rating among U.S. states. A taxable California bond maturing in 2039 traded for a yield of 7.08 percent today, up from an average of 6.87 percent on May 6, according to Municipal Security Rulemaking Board data.

12 comments:

  1. California, -it's just like Detroit.

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  2. California will make drastic cuts just to get bailed out by the federal government...watch!

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  3. California is what happens when government take complete control of a state backed by unions.

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  4. How brave, Ahnold; pick the programs the feds will most likely bail out in order to buy votes.

    Maybe we can get the EU to help us out here! lol

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  5. EVERYONE: check out www.cafr1.com There is NO $ shortage but the $ is not ALLOCATED to the budget . In fact every state, city and county has 2 sets of books-- one you heard of called the budget and the other you never hear of called the Comprehensive Annual Financial Report (CAFR) which lists ALL the financial holdings including STOCKS , golf courses, etc. the profits from which investments are NEVER put into the budgets! On average there is 3 times the $ in STOCK Market holdings, etc than in the budgets!California composite (cities, counties and state ) has 6 $ TRILLION that is not in the budgets! EG, Zerox is 70% owned by govts and the govts own over half of the stock market! We are being conned big-time into poverty by design.PS Is the budget for your household ALL your wealth? Does it include your stock holdings, ALL of your bank account $, etc.? Of course not! But the corrupt mainline media NEVER mentions the CAFR's and it's surpluses but instead constantly says the govts have "budget shortfalls" etc. Of course that is technically true because most of the State/City/County $ isn't even put into the budget!It's mostly in the Stock Market, etc. This is illegal and called 'Conversion' of funds; ie, theft!

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  6. We don't need the Feds. We should start our own bank and mandate that ALL state pension funds are invested therein. Then we provide credit based upon the retirement investments. That would reduce the money floating in the rest of the country by at 20%. Then the Feds will learn that they can't screw with California. This stuff about Wall Street running the country. That simply has to end.

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  7. Hey Arnold, I thought you said all of your new green tech jobs would save the California economy. Maybe, if you cut benefits to a few million illegals so they would deport themselves, the state might not have such a huge deficit. You campaigned on a "I'll clean up the mess in Sacramento" platform. Looks like you need a new broom!

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  8. Get the illegals out and save millions!

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  9. The Revolution will not be televised!!!

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  10. Anonymous,

    I would like to shake your hand!

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  11. as long as the state employees services are cut first, great.

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  12. Give california to the Chinese as payback for the trillions we owe them. And they can keep the illegals as a bonus.

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