Sunday, December 14, 2008

$40 bu-bu-bu-billion

And it turns out it wasn't only people who have been caught naked as the tide goes out. The next 18 months are now looking at a $40b deficit. That's now officially in my likely default territory. I wasn't expecting these dire 2009-2010 numbers until May when the tax receipts are counted. Not that this bad news has had the slightest impact on our dear leaders in Sacramento.
"But the cuts would be so deep as to be politically lethal even for (lawmakers) who think they are in districts that are safe."

This from SFGate story:
Budget crisis may lead to $40 billion deficit
Matthew Yi, Chronicle Sacramento Bureau
Sunday, December 14, 2008
(12-14) 04:00 PST Sacramento --

California is bleeding so much money that without a sweeping fix, the state's budget deficit will reach an unprecedented $40 billion in the next 18 months, a huge gap that many officials agree can't be bridged without increasing tax revenue.

But Republican state lawmakers, ...
But what? Do I have to spell it out? The Republicans don't want to accept any new taxes until the cuts are made first. This because they know that any new money would go where the Democrats want not to balancing the budget.

And belated congratulations to Tony Strickland for earning the local State Senate seat. The repercussions will be national.

$40 billion is more than $1100 per person and we know that by the time we exempt the children and the poor and the illegals there won't be many left to bleed.


wagga said...

A pox on both their houses.

First rule here is that CA won't be governable until the the gerrymandered boundaries are fixed.

Casey Serin said...

As a resident of California, I certainly can't afford my $1100 share of the deficit... sure, I stole around $500,000 but I spent it all on Jamba Juice and trips to the beauty salon.

Ah well, c'est la vie! :-p

Akubi said...

I hate to sound like a redneck repug or something, but less face the data:
Illegal aliens are a serious fiscal crisis in Californicated and I am sick and tired of the politicos burying their heads in the sand over the issue.

Akubi said...

Elegy for George W. Asshat.

Akubi said...

For one,
Illegals are constantly procreating and taking up hospital space and bills they’ll never pay because a hundred or so others share their goddamned fake SS#.
We all know who the fuck pays in the end.
Anyway, I’m all for loosening the immigration standards and bringing in intelligent folks who speak Fucking "English" and understand the concept of birth control.

Unknown said...

If Arnie was not a Girlyman who wants to run for the Senate, he'd use the line item veto to show Republicans he's serious.


Hang tough Republicans!

1.44MB said...

Rob now that your gore-esque day-after-tomorrow predictions of a new ice age in the southlands have turned out to be a nothing burger can we have the snow turned off please - keeps crashing my browser.

I'm quite enjoying watching all this impending financial pile up in CA - since murseboi snuggled back under the parental duvet I've been jonesing for another good trainwreck fix.

Rob Dawg said...

Okay, fake snow off the browser, real snow on the ground tomorrow.

Akubi said...

A. All politicians suck.
B. Repugs have been the most evil sorry mofo's from hell in my lifetime.
C. Fuck You!

Poltics aside, we have a serious fiscal crisis of procreating fat-ass burrito eaters.

1.44MB said...

Rob there will be snow on the ground tomorrow in Ventura...... Iowa - not where you live.

Jeez between you and octopus boi you'd think California wasn't the best place in the world or something.

I grew up in England during the 70's - I had Irish people actively trying to kill me and cold water pounded down from the sky e-v-e-r-y day. The impending collapse of society here doesn't bother me one bit as this time a) I'm legally allowed to shoot back and b) the weather will be quite pleasant while I'm reloading.

Lou Minatti said...

A $1 increase in the gas tax. It's coming. And Akubi is a racist Rethuglican. For shame.

Peripheral Visionary said...

As usual, the problem is being blamed on the party not in power--as if the party that is in power couldn't get things done if it had its ducks lined up in a row. Hey, maybe they should blame the Greens, the Constitution Party, and the World Worker's Party while they're at it.

And Akubi, we would never mistake you for a redneck repug. But you're correct, the illegal immigration issue is serious crippling California (and Arizona, and New Mexico, and . . . )

Peripheral Visionary said...

And one other comment while we're all ranting (or at least I am, anyway.) The size of this gap means quite simply that there need to be massive spending cuts. Raising taxes will have to be part of the eventual solution, but the much-derided Laffer Curve is about to prove its critics wrong, as California taxes are very rapidly approaching the point of diminishing returns.

w said...

Akubi, I would suggest that the problem of too many poor immigrants taking up government benefits in California is COMPLETELY at the feet of the liberals. While Bush made many bad judgements on critical issues I do think he did what he thought was the right thing.

Unknown said...

Hopefully this guy's restitution will help balance your budget -

chickelit said...

Akubi is a racist Rethuglican. For shame.

No, he just hates us breeders.

SmellyPogoStick said...

Just levy a $40B per gallon tax on gasoline, sell one gallon, and the problems are over.


w said...

It is amazing to think about being 40 Billion in the hole. Like Rob said that is going to be a lot more than $1100 per person for those who make even middle class incomes. With a family of five I would be looking at $5500. Assign a few poor families to me and I will be up to $10,000-$15,000. If there was a rational government who made spending cuts to meet half way and I could pay $6-7,000 for the good of the state I could be convinced. But the state is $40 billion in the hole with no current expectation that this debacle will ever end. What happens in 18 months? Are we looking at another $40 billion then too?

People will happily pay taxes when they see the benefit to their community. When the TAXPAYERS lose faith, the system is in trouble. Right now taxpayers are feeling like chumps.

Maybe this state will go Republican after this all ends.

Akubi said...

Yeah, I was having fun with the redneck stuff...
Arnold has shared the current Bush Admin's utter lack of fiscal conservatism that got this state and country into the current rabbit hole from hell. Unless you're a wingnut, what is the point of being Republican any longer (as far as I'm concerned the party's only theoretical virtue was being *fiscally* conservative and that surely doesn't apply any longer)?
No, I also do not appreciate people like that Dem foreclosure rep – her name escapes me at the moment – but she had several houses...
Hmm, I think I need to come up with a new ranting blog under a new name...

Lou Minatti said...

Hmm, I think I need to come up with a new ranting blog under a new name...

You're late. This is a given. The only question is will it be an additional $1 or $2. Remember, they will concoct a bogus excuse. Something like a "climate emergency fund" in order to "head off global warming."

What I think needs to be done:
Destroy the prison-industrial complex. Quit locking people up who smoke weed. Treat weed like alcohol and regulate/tax it.
No more state services for people who aren't residents of California.
Completely eliminate perks for all California public employees.
Speaking of which, all public employees should be on the same retirement system that the rest of us are on. Ditto for the medical bennies.

Bet that would go a long way to balancing the budget. I'd like this applied to Texas as well, considering that we will soon read about shortfalls in our budget as the oil market goes tits-up.

w said...

There are a lot of good fiscally conservative Republicans out there. However, they do not usually hold major offices in liberal states. Bush thought independents and swing voters would like him and re-elect him if he was a free spender. Prescription medical benefits are a good example of buying votes and being too close to BIG business. In retrospect, beware of blue blood Republicans.

Arnold is a joke. I voted for McClintock. A real fiscal conservative.