Poor (& broke) California

[Bad_Daddy 2,209]

LOL @ California

http://news.yahoo.com/s/nm/20110216/us_nm/us_economy_california_jobs;_ylt=ApH4WYNLTd_fIC3o3VIzpghvzwcF;_ylu=X3oDMTJyb2dmNTJlBGFzc2V0A25tLzIwMTEwMjE2L3VzX2Vjb25vbXlfY2FsaWZvcm5pYV9qb2JzBGNwb3MDMQRwb3MDMQRzZWMDeW5fdG9wX3N0b3J5BHNsawNjYWxpZm9ybmlhZ28-

SAN FRANCISCO (Reuters) – California Governor Jerry Brown ordered a hiring freeze on Tuesday across the state's government to help cut costs in the face of a budget gap of at least $25 billion.

The budget deficit of the nation's most populous state is closely tracked in financial markets. California is the biggest issuer of U.S. municipal debt, and is of concern in Washington as some in Congress have discussed crafting legislation to allow states to declare bankruptcy to ease their fiscal woes.

The U.S. economy may be recovering but state and local governments still face weak revenue due to the recession, housing and financial market slumps, hesitant consumer spending and high unemployment.

Brown's order applies to vacant, seasonal, full-time and part-time positions and will save $363 million in operational costs in the next fiscal year beginning in July, Brown's office said.

"The hiring freeze will be in effect until agencies and departments prove that they can achieve these savings," Brown, sworn in last month, said in the statement.

It was the latest move by the 72-year-old Democrat to trim state spending on his own as he seeks approval from lawmakers for his budget plan.

It includes proposals for $12.5 billion in spending cuts and calls on the legislature to put a ballot measure to voters in June to extend tax increases scheduled to expire this year.

Democrats, who control the legislature, are expected to support Brown's cuts to help win Republican votes needed to advance a measure to the ballot.

The tax extensions, spending cuts and other moves would close a budget gap Brown estimated last month in his budget plan at $25.4 billion through mid-2012.

That deficit may swell to more than $27 billion after Brown canceled a plan to sell state buildings and if his proposal for creating a nearly $1 billion reserve survives budget talks with lawmakers.

In addition to the hiring freeze, Brown has ordered sharp reductions in mobile phones for state employees and in the state's vehicle fleet.

To further underscore frugality, Brown recently took a commercial passenger flight -- coach and without entourage -- to Southern California to urge business groups to support a referendum on tax extensions.

[_Simpson_ 250]

Those dam republicans!!!

[Mr. Big Dog 10,747]

Those dam republicans!!!

What, those damn Republicans that have brought budget woes no less severe to the Lone Star state?

[Bad_Daddy 2,209]

What gets me is the Feds are seriously considering letting California declare bankruptcy. This is going to open a door that shouldn't ever be opened. It sends a message that it's OK for states to screw off their money like it's no big deal.

[one...two...tree 2,762]

Prop 13.

[^_^ 5,021]

Prop 13.

You sure about that? Jersey is the opposite in terms of property taxation. They charge up the wazoo here and our budget problems are worse than California's! The thing is, the more government gets the more it spends. It simply expands to the size of incoming revenue. Now if the expansion was in areas that helped the average taxpayer, I doubt people would be complaining so much. Instead, the expansion is in areas that are frankly wasteful.

[one...two...tree 2,762]

The Legacy of Proposition 13

Before Prop 13, in the 1950s and '60s, California was a liberal showcase. Governors Earl Warren and Pat Brown responded to the population growth of the postwar boom with a massive program of public infrastructure — the nation's finest public college system, the freeway system and the state aqueduct that carries water from the well-watered north to the parched south. When Ronald Reagan was governor, he actually raised taxes. Then Proposition 13 shot the tires out of Pat Brown's liberal state. Liberal legislative leaders such as Willie Brown and John Burton jerry-rigged repairs and kept the damaged vehicle running for 30 years. Now Republican Arnold Schwarzenegger says there is no choice but to complete the demolition by slashing essential services.

Read more: http://www.time.com/time/nation/article/0,8599,1904938,00.html#ixzz1E9LvXTP3

[I AM NOT THAT GUY 5,715]

Prop 13.

Prop 13 limitations on local government were made irrelevant with the passage of Mello-Roos. Anybody can create a tax district for any purpose that charges property owners in addition to the Prop 13 tax rate.

Edited February 16, 2011 by Some Old Guy

[one...two...tree 2,762]

Prop 13 limitations on local government were made irrelevant with the passage of Mello-Roos. Anybody can create a tax district for any purpose that charges property owners in addition to the Prop 13 tax rate.

It's the state government that's on life support and it's thanks to Prop 13. I know anti-government, old hippies don't like to admit it, but that's the fact, jack.

Edited February 16, 2011 by 8TBVBN

[I AM NOT THAT GUY 5,715]

It's the state government that's on life support and it's thanks to Prop 13. I know anti-government, old hippies don't like to admit it, but that's the fact, jack.

If the state relied only on property tax revenues, you might have an argument. California's revenue problems stem from an overly progressive income tax and an extremely regressive sales tax, that drive potential employers to Nevada, Oregon, and Arizona.

Edited February 16, 2011 by Some Old Guy