Tuesday, March 10, 2009

Deadnafornia

Lot's of news. Three must read articles. All from "liberal" sources which tells you just how serious things are getting. First up the LATimes top story:

Cities brace for revenue losses as property values continue to drop
Even with the decline in home values, the property tax base in five Southland counties grew last year thanks to continuing sales and the completion of construction begun during the 2003-2006 building boom. But assessors in those counties said they have reduced the value of more than half a million properties and expect to make deeper cuts to their rolls by the summer.

This is bad news for local governments that have been relying on property tax proceeds to help make up the shortfall from reduced incomes and spending in their areas. Already, cities and counties across California have been freezing jobs, imposing work furloughs and pay cuts, postponing repairs and reducing some public services.

The next two are from Calitics. Readers are urged to vist there often for some excellent "inside baseball" for California issues. Just keep your liberal bias filter set to "11".

Statewise, Yeah, We're Still Well And Truly Screwed
John Chiang: We always borrow at the beginning of the year, 25 out of the last 26 anyway and then in April we make up the difference. But this year we walk in with weakness into the next fiscal year. There are less tools in the tool kit. We'll need a massive RAN or RAW (Revenue Anticipation Warrant).

Remember these last budgets borrow $16.5 billion from (state) special funds to backfill the general fund. So if we have any emergency in the state requiring aid from one of those special fund departments, the state is in trouble. Over 1,100 special funds in the state and we borrowed from over 650 of them. Part of this last budget solution gives us the ability to borrow another $2 billion more. The governor's budget has us borrowing $11 billion from special funds over the next 18 months.

So we're going to have to do some outside borrowing for the next fiscal year. Period.

Localwise, The Next Budget Crisis: City and County Governments
LA's budget gap might hit $1 billion, owing to factors largely outside of city government's control. Monterey County faces $163 million in deficits over the next three years even if cuts in salaries, benefits, and services are made. County health centers may close, cuts to already-stressed hospitals are likely to be made, and of course, more people will be put out of work.


As predicted here oh so very long ago raising taxes will not result in increased revenues.

27 comments:

Pleather Murse said...

Very appropriate that Mexifornia is the first state to experience the dam breaking. (I almost said, "a breach in the dyke..." but thought better of it.)

Centipede said...

And Nancy Pelosi is sure helping this state these days.

Rob Dawg said...

You talked me into it. I'll post a ripping Pelosi editorial in a few days. Obama just concerns me. She scares me. She's dangerous.

Centipede said...

I've read this far too many times: "federal immigration hold pending an investigation into his citizenship status."

Bill in NC said...

Wow - they actually reduce property valuations in CA?

Here in flyover country my assessment went up 20% from 2005.

Despite the fact that the last sale in my complex was on a unit that sold for $120,000 in 1999, but only $88,000 last December (not a foreclosure or short sale)

w said...

Bill, Prop 13 will starve the beast here in CA. Prop 13 may be a hammer when a screwdriver is required but current events are exactly why we need it. The government loves to tax property owners because they have a hard time getting away.

Lost Cause said...

"Starve ther beast." What a foolish thought. Death and taxes are not going away. Get something back for your tax dollars, instead of just paying for the bombs to kill Iraqis.

H Simpson said...

In the People's Socialist States of Mass, the government is about to:

1. Add 25 cents on top of the current gas tax making them on 2nd to California.

2. Cranking the income tax to 6 percent.

3. They want to add to the tolls for the big dig tunnels nobody likes to use because they have a habit of caving in and killing the driver. they also want to add to the taxes on drinks and booze. Lots of taxes.

But not once, NOT ONCE has the phrase reduce spending been uttered.

Getting ready to buy a gas station that also sells cheap beer on the nh/ma border. Going to make a killing while helping to save some of the citizens of Mass from their own government.

It reeks of 1981. When things get tough, the legislature ups the tax rate. Then they try to figure why there is no business left.

w said...

Are you serious Lost Cause? Like we wanted to go to war in Iraq? The morons in the white house sold us out. I don't even believe it was malicious, just incompetence.

We do not get enough back for our taxes. There is no end in sight. Californias government has absolutely no fear of the populace. They will continue on their crusade against the private sector until there is no choice but to leave or join them.

Why don't they stop pussyfooting around and pass the tax they really want: the white male tax. Maybe an extra 25% off of gross income? Of course we will need an asian male tax too. Maybe 30% off of gross income since they overburden our institutions of higher learning. Sounds good, I am sure Pelosi and folks like Robert Reich would approve.

w said...

Rob, who wouldn't want to buy gold after seeing this.

Son of Brock Landers said...

H Simpson - that's what happens when a state elects someone with jack for experience and beholden to special interests. is deval still floating out the idea of taxing insurance companies for investment income returns?

Rob Dawg said...

H Simpson,
That's why I left in '83.

Of course now I live in the highest gas taxing, 9.3% income taxing, 10% sales taxing Kalifornia.

Rob Dawg said...

w,
That's some seriously wacked dude. Probably owns shares in Goldspring.

Lost Cause said...

What has become of out little Snowflake? Every time I get a super colon cleanse spam in my e-mail box, I think of him. I just can't have a case of diarrhea without remembering those words, "It's not a fart." Every time I read about some eastern european gangter in Sacremento, I wonder how he is doing. All the multiple ponzi schemes, real estate frauds...I wonder. Anybody know?

serinitis said...

serin.us recently changed from a 404 error to a blank page. Other than that we do not have any info on our favorite fraudster.

Aaron said...

OT:
If they suspend or modify mark to market you can bet that we saw the bottom in the stock market last week.

http://money.cnn.com/news/newsfeeds/articles/djf500/200903121115DOWJONESDJONLINE000795_FORTUNE5.htm

I think it would take politicians at least a month to do it but one never knows about these scumbags.

Property Flopper said...

It's odd that Casey has gone this long without popping up. I mean, GSPG has dropped down to 13 cents, he's got to be proud of that. What was his break even again? Something like 25 cents?

He's come on the net to brag about his failures, why isn't he bragging about this one? Failing at real estate, failing his wife, failing his family, failing to keep control of his bowels... there isn't any failure Casey hasn't wanted to share.

Rob Dawg said...

PF,
GSPG has dropped to 1.3¢. Averaged in purchae price including transaction costs is about 5.8¢. With carrying costs for the borrowed money and lost opportunity costs closer to 8¢ by now.

Property Flopper said...

Rob - thanks... can't believe I slipped a decimal point there. Yes, 1.3 cents. Ugh. It's been a long week... that's the only excuse I can make. Worked through the weekend, so I'm on day 11 of the week.

Clients... can't live with em, can't get away with shooting them... but you can bill them for a LOT of money when they do stupid things and need you to bail their butts out.

Lou Minatti said...

Well, at least you have nice weather.

Akira said...

So where's this supposed Pelosi update?
The Fishnet Friday Factor wants to know.

Centipede said...

Without Hot Ass in Fishnets this blog kinda sucks Beavis.

Lost Cause said...

Bernie Madoff goes to jail. The stock market launches. Just imagine if the Bush Gang were to face justice for their crimes.

w said...

Wow, if they have committed crimes maybe Obama is considering them for cabinet appointments.

It may interest you that Madoff was a big financial supporter of the Democratic party. Maybe he was a 'supersecretundercoveragent' whose mission was to bankrupt little old ladies who were members of the Womens Republican Club. A regular modern day Robinhood.

segfault said...

China is making noises about purchasing less U. S. debt... That sounds like a whole big bowl of Not Good™.

Property Flopper said...

CA's new budget already out of balance. They just closed a $41B whole, now they're looking at another $6 to $8B.

This is just stupid. Let's take the most rosey scenario and deal with that. Oh, that wasn't real, we now have a problem. Let's take the most rosey scenario...

Put together a realistic budget. That means SEVERE cuts and tax increases. Both have to happen.

Property Flopper said...

Did I just use the wrong "hole/whole"? Jesus, I need a vacation.