California, skint again...

[Gob]

California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.

The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.

But Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.

The Assembly budget committee approved a bill today that would enable $865 million of borrowing from existing state accounts, Senate Bill 95. Chiang, after consultation with the Department of Finance and state Treasurer Bill Lockyer, is also seeking about $2.4 billion in delayed payments to universities, counties and Medi-Cal, as well as additional borrowing from outside investors.

Absent these actions, the state would fall below its prudent $2.5 billion cash cushion on Feb. 29, Chiang estimated. On March 8, the state would actually end up $730 million in the red. The state would be below the safe cash cushion for several weeks ending April 13, save for several days at the end of March.

With such actions, Chiang believes the state would not have to use IOUs or delay tax refunds, maneuvers that have been relied upon in previous years. But Chiang also said that "more cash solutions may be required if our revenues continue to erode or if disbursements significantly exceed estimates."

California borrows money early each fiscal year because the state has regular monthly expenses but receives the bulk of its tax revenues in the spring. The state borrowed $5.4 billion last fall for this purpose.

Assemblyman Bob Blumenfield, D-Woodland Hills, downplayed the significance of the new borrowing in a hearing. He said $5.4 billion was small relative to the $10 billion state leaders were prepared to borrow last year.

Some Republicans raised questions about when the borrowing from state accounts from would be paid back and why the state is spending more than expected.

Read more here: http://blogs.sacbee.com/capitolalertlat ... rylink=cpy

[dales]

One-party rule does a state proud!

[dgs49]

While I understand the point about about having a revenue surge in the Spring, funding ongoing expenses by borrowing is irresponsible.

And in some states, unconstitutional.

Are there any adults out there?

[dales]

It would not seem to be the case, dgs.

Will Rogers is said to have quipped that when all the Oakies moved out to California during the dustbowl, that the average IQ went up in both places?

[rubato]

California is still suffering the effects of the Republican-created national economic disaster. If the Republicans in the Calif. legislature had not said that they will not allow Californians to decide for themselves what their taxes should be we would not have a problem. Republicans are the anti-democracy party.


yrs,
rubato

[dgs49]

Rube, do you ever actually read what you write?

California is BROKE because a long line of Democrat legislators have followed a disastrous path to acheive that ignoble end. They have tried (and apparently succeeded) in bankrupting the state by promising everything to everybody - and in particular those employed by the State - without regard to how it would be paid for.

And you personally advocate resolution of this through higher taxes.

Is it any wonder why white working people and corporations are fleeing the state?

Honestly, it is time to right a wrong. I think it's time to give California back to Mexico, from which it was stolen. Definitely a Win-Win.

[dales]

Honestly, it is time to right a wrong. I think it's time to give California back to Mexico, from which it was stolen. Definitely a Win-Win.

Careful there, dgs.....CA has nukes.

[dgs49]

California can start by paying for its own stupid fucking high-speed train line.

Based on an analogous, financially disastrous line in Spain, barry and gerry - both leading governments that don't have the proverbial pot to piss in - are touting a monstrously expensive line between nowhere and some other nowhere, hoping eventually to complete the link between LA and SF.

Where are environmentalist wackos when you need them?

[dales]

Why the hard on for Cali, dgs?

It wouldn't be envy, would it?

http://taxprof.typepad.com/taxprof_blog ... _feed.html

States Receiving Least in Federal Spending Per Dollar of Federal Taxes Paid:

1. New Jersey ($0.62)
2. Connecticut ($0.64)
3. New Hampshire ($0.68)
4. Nevada ($0.73)
5. Illinois ($0.77)
6. Minnesota ($0.77)
7. Colorado ($0.79)
8. Massachusetts ($0.79)
9. California ($0.81)
10. New York ($0.81)

Go suck an egg.

[rubato]

California can start by paying for its own stupid fucking high-speed train line.

Based on an analogous, financially disastrous line in Spain, barry and gerry - both leading governments that don't have the proverbial pot to piss in - are touting a monstrously expensive line between nowhere and some other nowhere, hoping eventually to complete the link between LA and SF.

Where are environmentalist wackos when you need them?

California subsidizes the Republican welfare states to the tune of $50 Billion dollars a year.

We've been carrying the useless lazy asses of conservatives for 50 years. Cut them all off the teat and make them walk on two legs for a change!

dollar values in millions
California ….. year ….. federal taxes paid ….. federal monies received ….. difference
………. …..….. 2000 ….. $277,189 …..…..….. $175,967 …..….. -$101,222
………. …..….. 2001 ….. $265,573 …..…..….. $188,758 …..….. -$76,815
………. …..….. 2002 ….. $243,062 …..…..….. $206,417 …..….. -$36,645
………. …..….. 2003 ….. $234,595 …..…..….. $219,706 …..….. -$14,889
………. …..….. 2004 ….. $250,373 …..…..….. $232,387 ….…... -$17,986
………. …..….. 2005 ….. $289,627 ….…...….. $242,023 …..….. -$47,604
………. …..….. ….. ….. …….. …..….. ….. ……..
Taxpayer ….….. ….. ….. …….. ….. total 2000-2005 ….. -$295,160 (millions)
………. …..….. ….. ….. …….. ….. per year ….. -$49,193.30




yrs,
rubato