People's Republic of California: Bankrupt by July, 2009?

[Little-Acorn]

The PRCalif state constitution says they must balance their budget every year. Recently they've been pretty much ignoring that by various devices. They also have a state law that says any tax increase must be approved by 60% votes in the Assembly and Senate, something they haven't been able to ignore.

The highly liberal legislature has been increasing spending every year, and tax revenues haven't kept up. And now with the liberal-created recession the country is in, state revenues are fallinng even more. The deficit they're facing this year is large than the entire budget of many foreign countries.

Gov. Ahnold was elected based on his "No tax increases" promise. But at the latest budget negotiation, he accepted some, so people are pretty pissed at him. Why they aren't pissed at the legislators (including Ahnold) who keep spending more and more money they don't have, I'm not sure.

Still, the only way this year's budget would "balance", is if some special ballot propositions pass on May 19, 2009. They are basically tax increases, disguised as other things. If those don't pass, then PRCalif will have a deficit of some $30 billion or more.

And it looks like voters are seeing thru the disguises: Polls show ALL those special propositions (Prop 1A, 1B, 1C, 1D, 1E, 1F) are losing, possibly excepting 1F. 1F is a silly one that lowers legislators' pay if they fail to pass a balanced budget on time. I might vote for that one, though its money-saving potential is trivially small.

Fasten your seat belts, folks. If the largest-population-and-budget state in the union goes bankrupt, how will that affect the rest of the country? Or the Fed budget?

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http://wcvarones.blogspot.com/2009/05/prop-1a-poll-going-down-harder.html

5.07.2009
Prop. 1A poll: going down harder!

Last week, we noted that Proposition 1A was going down 40-49, but that the politicians and special interests were beginning a big-dollar media blitz to promote it.

Well, after millions in ad spending and Schwarenegger threatening to let California burn unless we pass his tax increase, have the people been cowed?

Nope. I can't find it online yet, but KFI radio is reporting a new Public Policy Institute of California poll putting support at 35% and opposition at 52%. I'll post the link when I find it.

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UPDATE (5/8/09): Here's the news story:

http://www.venturacountystar.com/news/2009/may/08/voters-are-turned-off-by-ballot-measures-poll/

Voters are 'turned off' by ballot measures, poll shows

by Timm Herdt (Contact)
Friday, May 8, 2009

As the Legislature’s nonpartisan fiscal adviser warned Thursday of a looming cash crisis that will become more severe if the special election ballot measures are defeated, a new poll shows voter sentiment against the measures is strong and rising.

A survey of 1,080 likely voters by the Public Policy Institute of California shows all five fiscal-related measures trailing less than two weeks before the May 19 special election, with the negative sentiment highest among those who say they are most motivated to vote.

“The voters who are tuned in are really turned off,” said pollster Mark Baldassare.

It shows likely voters are opposed to Proposition 1A 52 percent to 35 percent, against 1C 58 percent to 32 percent, leaning against 1D 45 percent to 43 percent, and opposed to 1E 48 percent to 42 percent.

It looks like you wouldn't know about this poll if you got your news from the L.A. Times. Now that KFI and the W.C. Varones Blog are breaking news stories, will the loudmouths at the L.A. Times at least make some uninformed comments? Will they be wearing pajamas when they do?

Posted by W.C. Varones at 3:45 PM

 

[Andy]

The PRCalif state constitution says they must balance their budget every year. Recently they've been pretty much ignoring that by various devices. They also have a state law that says any tax increase must be approved by 60% votes in the Assembly and Senate, something they haven't been able to ignore.

It shows likely voters are opposed to Proposition 1A 52 percent to 35 percent, against 1C 58 percent to 32 percent, leaning against 1D 45 percent to 43 percent, and opposed to 1E 48 percent to 42 percent.

The people in California are going find out what the rest of America is still not grasping.... that you can't spend spend spend, and not tax tax tax.

They apparently want to get all the wonderful government programs, but don't want to pay the tax for all of them.

I wonder what the demographics are of the 30% in favor of these tax hikes?

 

[PLC1]

The highly liberal legislature has been increasing spending every year, and tax revenues haven't kept up. And now with the liberal-created recession the country is in, state revenues are fallinng even more. The deficit they're facing this year is large than the entire budget of many foreign countries.

That pretty much sums up the situation.

Gov. Ahnold was elected based on his "No tax increases" promise. But at the latest budget negotiation, he accepted some, so people are pretty pissed at him. Why they aren't pissed at the legislators (including Ahnold) who keep spending more and more money they don't have, I'm not sure.

Here is what Californian's think of our legislature:

Only a third of registered voters approve of the governor's job performance, the lowest number since Schwarzenegger's 2003 election, the poll shows. And the state Legislature's approval rating sits at 14 percent, the lowest since 1983.

What would their approval rating be if we were "pissed at the legislators"?

Still, the only way this year's budget would "balance", is if some special ballot propositions pass on May 19, 2009. They are basically tax increases, disguised as other things. If those don't pass, then PRCalif will have a deficit of some $30 billion or more.

It still wouldn't balance, even if some miracle occurred and those propositions passed. The budget is based on smoke and mirrors, just like the one in Washington.

And it looks like voters are seeing thru the disguises: Polls show ALL those special propositions (Prop 1A, 1B, 1C, 1D, 1E, 1F) are losing, possibly excepting 1F. 1F is a silly one that lowers legislators' pay if they fail to pass a balanced budget on time. I might vote for that one, though its money-saving potential is trivially small.

See? Californians are smarter than the rest of the country gives us credit for. We know the government has screwed up. We're just too laid back to do much about it, you know, kind of like the rest of the country and the events in Washington.

Fasten your seat belts, folks. If the largest-population-and-budget state in the union goes bankrupt, how will that affect the rest of the country? Or the Fed budget?

Good question. Answers will soon be apparent, but no one will like them. Come to think of it, though, if AIG is too big to fail, then California must be too. How about a federal bailout? C'mon, guys, just keep those printing presses going a little longer!