California fiscal crisis

[Heracles 417]

Anyone know what the hell is going on in that state?

How can a state with so much wealth be broke?

Simply beating a dead horse and cutting more and more from public service does nothing to fix the state. Even someone in elementary school would realize that when such a wealthy state is broke, tax revenue and avoidance is the issue period.

Instead of cutting back from residents, how about actually quantifying how much is spent on illegal aliens and their children. Then compare it to actual revenue received from them.

[one...two...tree 2,762]

Anyone know what the hell is going on in that state?

How can a state with so much wealth be broke?

Prop 13 - which passed about 30 years ago, started moving the state into this big financial hole, by requiring a 2/3 super majority in the state legislation to pass any tax increases. As the California schools (which used to be near the top in the nation) began to decline, creative ballot initiatives were passed that protected and secured some of the funding for schools, regardless of the state's budget shortages. Many Republicans in the state think the stranglehold that Prop 13 puts on the state budget will force everyone to tighten their belts and the Democrats are saying there aren't anymore holes on the belt to tighten with.

And this isn't necessarily unique to California. Many states including red states like Arizona are facing their own budget crisis. However, with Arizona, tax increases only require a simple majority and the state recently passed a sales tax increase.

[Heracles 417]

Prop 13 - which passed about 30 years ago, started moving the state into this big financial hole, by requiring a 2/3 super majority in the state legislation to pass any tax increases. As the California schools (which used to be near the top in the nation) began to decline, creative ballot initiatives were passed that protected and secured some of the funding for schools, regardless of the state's budget shortages. Many Republicans in the state think the stranglehold that Prop 13 puts on the state budget will force everyone to tighten their belts and the Democrats are saying there aren't anymore holes on the belt to tighten with.

And this isn't necessarily unique to California. Many states including red states like Arizona are facing their own budget crisis. However, with Arizona, tax increases only require a simple majority and the state recently passed a sales tax increase.

While I have been a fan of CA's prop system, voting on taxes is a joke. Of course nobody wants to pay taxes.

Be it tax, wages, services, investments and so forth, Republicans assume cuts are the answer to everything, they are not. If they were, other countries with a higher GDP per capita wouldn't be doing the total opposite then. In fact, I have never heard of cuts or states going bankrupt in AUS and for an amazing reason, they pay taxes.

The tax system is a joke as I purchase a lot of ####### from CA and the state earns no tax from me. Whereas, regardless of state in AUS, I will pay the federal GST/VAT; which will be allocated back to the state.

Edited July 29, 2010 by Heracles

[one...two...tree 2,762]

While I have been a fan of CA's prop system, voting on taxes is a joke. Of course nobody wants to pay taxes.

Republicans assume cuts [be it tax/wages/services/investments] are the answer to everything, they are not. If they were, other countries with a higher GDP per capita wouldn't be doing the total opposite then. In fact, I have never heard of cuts or states going bankrupt in AUS and for an amazing reason, they pay taxes.

The tax system is a joke as I purchase a lot of ####### from CA and the state earns no tax from me. Whereas, regardless of state in AUS, I will pay the federal GST/VAT; which will be allocated back to the state.

There's been some recent articles on the empty promises of Supply-Side Economics - which created the new rhetoric of the Republican Party that cutting taxes will make our economy grow. Their sales pitch has been as alluring as those fad diets that tell fat people they can eat all they want and still lose weight, but I believe American voters have gradually wised up about this fallacy.

[elmcitymaven 9,712]

There's been some recent articles on the empty promises of Supply-Side Economics - which created the new rhetoric of the Republican Party that cutting taxes will make our economy grow. Their sales pitch has been as alluring as those fad diets that tell fat people they can eat all they want and still lose weight, but I believe American voters have gradually wised up about this fallacy.

One would hope, but it seems that enough voters still have not grasped this particular nettle.

[one...two...tree 2,762]

One would hope, but it seems that enough voters still have not grasped this particular nettle.

I know I salivate with anticipation for the Sunday paper full of coupons and special offers. I can't control it.

[Pinocchio Liberal 268]

U N I O N S.......... A N D.............E N T I T L E M E N T S!

Edited July 29, 2010 by Col. Lingus

[^_^ 5,021]

U N I O N S.......... A N D.............E N T I T L E M E N T S!

[Pinocchio Liberal 268]

California's public-employee retirement system stands in the most perilous condition, facing a half-trillion in unfunded liabilities. That's not surprising when you consider a California highway patrol officer can retire at age 50 and collect up to 90 percent of his salary for the rest of his life. According to the agency's website, a typical officer's pay will reach $109,147 after just five years on duty - an amount that can rise significantly with overtime benefits. That means a fit and healthy 50-year-old "retiree" who began work at age 20 would receive $98,232 a year from taxpayers for the rest of his life, and nothing prevents him from taking another government job to collect two paychecks. This form of double-dipping is rampant.

While most private-sector firms have trimmed their work force during the recession to achieve more efficient and profitable operations, public agencies have expanded. State and local governments employ about 15 million individuals, a figure that has jumped up 40 percent from 1992. By 2016, the number of state and local bureaucrats is projected to reach 20 million. Too many of these people are being promised far too much money, leaving state and local systems as bankrupt as Social Security, Medicare and other multitrillion-dollar federal entitlements.

[^_^ 5,021]

+1 to the Colonel.

[Pinocchio Liberal 268]

+1 to the Colonel.

Its about time!

[^_^ 5,021]

Its about time!

Well, you're not drunk yet.

[Darnell 8,478]

Anyone know what the hell is going on in that state?

It shouldn't matter to you, really, as you don't live there and the company you work for, isn't affected by CA's inability to pay contract payments in a timely fashion.

If you are looking for a 'real-answer' though - be sure, when yer doing yer research, to include 'left-wing folk' and 'right-wing folk' going nuts over the past 40 years, to get 'stuff' onto the voting ballot. Historically, in California, that's where all this silliness has occurred, at the voting booth.

Now, to get something ON the ballot, those 'groups' went nuts.

40 years of 'nuttiness' has taken it's toll - you really should study that - I'm thinking it'll keep you busy for about 3 weeks of yer spare time. and yes, I fully expect a 10,000 word position paper from you, later.

It's one thing to have a 'knee-jerk response' - it's another thing, to fully understand the problem because you did yer own research.

Good Luck !

Edited July 29, 2010 by Darnell

[Pinocchio Liberal 268]

Well, you're not drunk yet.

Im workin on it!

[^_^ 5,021]

Im workin on it!

Just say no.