Good day all, and a pleasant mothers day to you all. This story about California’s budget shortfall has been all over the place today. It seems that it isn’t $9 billion dollars, but $16 billion dollars.
The out of control spending in California on top of the bad economy has caused the deficit out there to just about double. Here are a few details from the New York Times:
The state budget shortfall in California has increased dramatically in the last six months, forcing state officials to assemble a series of new spending cuts that are likely to mean further reductions to schools, health care and other social programs already battered by nearly five years of budget retrenchment, state officials announced on Saturday.
You will notice there’s no mention about cutting useless and wasteful bureaucracies and getting rid of some of the overpaid hacks in “management” out there. Nope, the first thing Governor Moonbat, (Formally known as Governor Moonbeam) is cut things that are actually needed. Of course, since this is the People’s Republic of California, the first thing Moonbat wants to do is raise taxes. From Bloomberg:
Brown this week submitted more than 1.5 million signatures to place the tax measure on the ballot. It would temporarily raise the state sales tax, already the highest in the U.S., to 7.5 percent from 7.25 percent. It would also boost rates on income starting at $250,000. The 10.3 percent levy on those making $1 million or more would rise to 13.3 percent, the most of any state.
The first thing Liberals, Progressives, Socialists and Democrats do when they run out of money is steal more from people who actually work for a living. Of course, if these hikes go into effect, a lot more people won’t be working in California, and will probably leave the state. Here’s more from the New York Times:
State officials said the shortfall was a result of disappointing revenue collections in April as California continued to struggle to pull out of the recession. “We are still recovering from the worst recession since the 1930s,” Mr. Brown said.
No, California isn’t recovering. They are going deeper and deeper into the hole. The entire budget mess is their own fault. Businesses are leaving the state because of the tax and regulatory climate. I recall about 10 years ago, Intel was looking to expand it’s chip manufacturing base. They decided not to expand any of their plants in California. It was just to expensive to operate out there, and it’s gotten a lot worse, not better. Even Hollywood has been making a fair number of not most of their movies in other states.
One of the biggest wastes of money is the California High-Speed Rail system. This is also known as “Governor Moonbeam’s toy Choo Choo set.” This fiasco on rails was part of the Obama stimulus failure and is slated to cost $60-100 Billion dollars and will never make money. Governor Moonbat absolutely will not consider abandoning the project even though his OWN RAIL AUTHORITY says it will be a colossal, costly failure.
Already a number of cities and towns have filed for bankruptcy. Most of these failures were due to the incredibly generous contracts and pensions given to city employees. Thanks to the powerful unions, the various city treasuries have been looted. The unions will not back down from this and are demanding even MORE money! Bankruptcy is the only way the locals can repudiate the contracts.
What we are seeing here is a good 30 years of incompetent administration and a government that is run by people who literally have no grasp of economics. All the idiots running California care about is doing things that make them feel good and look good. They do not have the guts to do what has to be done to keep the state from essentially sliding into the Pacific. Frankly, there is really no hope for California. The only way to fix the structural mess is to strip California of its statehood, remove all government officials, both elected and appointed, and appoint a governor general to try and pull California back from the abyss. I also think that California is to large and needs to be broken up into several smaller states.
California and the Moonbat contingent are no doubt planning on putting the arm on the rest of the country to bail them out. This will go over like a lead balloon. Way to many states, (Surprisingly, most of them are Blue States), are also in big trouble. The states that aren’t to bad off, like Texas, will flat out refuse to do anything for states that have run themselves into the ground.
We are witnessing the first failed state in the United States. When it goes under, it’s going to be a nightmare.
Anyone want the popcorn concession?
~The Angry Webmaster~