PRCalifornia nars financial meltdown as revenues tumble


Well-Known Member
Jan 23, 2009
San Diego, CA
Notice what Reuters and the other Democrats consider a "meltdown" and/or a "disaster":

They might actually have to start paying government officials less! Or even fire some of them!

Oh, the horror............


California nears financial "meltdown" as revs tumble

Wed Jun 10, 2009 7:31pm EDT
By Jim Christie

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.

(Full text of the article can be read at the above URL)
Last I heard, the governor of California was a Republican. Almost a decent person, in spite of his handicap.

Yep. He married that handicap a long time ago, so don't expect it to change.

And he "married" a far worse one, several years ago: An extreme-liberal Calif Assembly and Senate who won't pass any kind of sensible financial plans, but keep spending like drunken Kennedies despite running up debts larger than most sovereign countries.

I feel sorry for him.
The voters of California recalled the previous governor due to budget gaps, and elected the current one in hopes that he would go and "terminate" the spendthrifts in the legislature.

Of course, he couldn't do that, but he was able to use his star power to convince the state to pass some bond measures so that spending could go on for a while.

Now, the chickens have indeed come home to roost, the budget is more out of whack than it was when Davis was governor, and no one seems able to do anything about it.

The Democrats won't hear of cutting programs, and the Republicans won't hear of raising taxes.

If the state is to become solvent, then both measures have to be done, yet no one seems willing to compromise.

There were a couple of Republicans who reluctantly did vote to increase taxes. The party threw them under the bus for their efforts. It's likely that any Democrat who voted to cut back the welfare state would suffer the same fate from his party.

It really doesn't matter which party sits in the governor's mansion. The legislature is deadlocked.

Every time there is any kind of a spending cut proposed, those affected rally in Sacramento, wave signs, and chant slogans. No, no, don't cut here, cut over there!

I'm beginning to think that the state is ungovernable, the budget unbalanceable, and the politicians in charge unbalanced.

Before you out of staters get too smug, remember that the rest of the nation seems to follow California's lead a lot of the time, then look at what is happening in Washington.