TIME FOR THE STATE OF CALIFORNIA TO PRESS THE RESET BUTTON BY FILING FOR BANKRUPTCY
By Bill Baker, J.D.
Editor and Publisher, The San Bruno Beacon
The State of California needs to dramatically shrink the size of State Government; cut State employees salaries, benefits, and perks; reduce all State taxes and fees; and file bankruptcy to get out from under the debt and debt service it is drowning in. Bottom line, the State of California needs to press the "reset" button by filing bankruptcy.
Bankruptcy will allow California's State Government to reduce or even eliminate it's debt and the interest it pays on that debt; dramatically reduce the number of State Employees and the size of the State government bureaucracy; allow restructuring of pension payments and benefits to government retirees; and undo the destructive, divisive, counterproductive stranglehold that government employee unions have on the State government. Finally, the reduced cost of government brought about by bankruptcy will allow California's State government to dramatically reduce or eliminate the State income and sales taxes as well as many of the other outrageous fees charged by the State.
Unfortunately, the California State Legislature is controlled by liberal, dreamworld, welfare state Democrats who don't understand that private sector taxes pay for all State welfare programs and the salaries, perks, pensions, and everything else that anybody who works in the government receives.
California's State Government has been turned into a welfare giveaway program supported by the private sector. When the government sector abuses and overtaxes the private sector it loses the revenues it needs to pay for its existence. The private sector pays for everything anybody on the government dole receives. Liberal Democrats and their ilk never realize that the government exists at the pleasure of the private sector to assist and support the private sector. When government gets too big, the private sector shrinks away leaving the government without revenues.
Yes we are heading for bankruptcy. When is it who knows. I've been hearing for years that California will be bankrupt tomorrow, two weeks, two years etc. I found articles on the internet from the 70's, 80's, 90's and 2003, 2006-2009 that it was just around the coner. Will it happen soon? My best guess is no. With Pelosi, Dem Congress, and Dem President I think we will be "bailed out" as too big to fail. Should California file bankruptcy, yes, otherwise there will be no incentive for the state to change the things that put us in this situation. Time to hit the reset button and set things back on track. If California does file bankruptcy just wait you all are next, when is just a matter of time.
David
Bail out California ????
President Obama has less than 50 days to decide this one. California is in deep, deep, deep trouble. It is now asking for the Obama Administration to bail it out. Should it? California is the 8th largest economy in the WORLD! (bigger than Brazil, Canada etc.) If the Obama Administration does not bail it out, will California go into such a deep recession (depression) that it then drags down other (all?) states since all the states are economicallly dependent upon each other? By the way, if Feds don't bail out California, I think the state will have to cut services drastically and raise taxes steeply. The state relies on income tax and business taxes to fund itself -- and both sources of income to the state have dropped with the downturn of the economy. If people and businesses are not making money, then they are not paying taxes....do you have a solution?
http://gretawire.blogs.foxnews.com/2009/06/16/bail-out-california/
whoa! Why are all of you concerned about California? Is California headed for bankruptcy?
Answer to question #1: I don't know why this is such a big deal. It is a yearly tradition that California faces bankruptcy and the state legislators argue and argue well past the deadline for approving a new budget for the state. I believe it was last year that the legislators went well past the deadline and then faced with the fact their own salaries would not be paid managed to put together a budget for the "Arnold" to sign. And only a few months after that "Arnold" began shouting budget cuts as the state was not going to meet its obligations. Of course, this bodes the question: Wait a minute! Didn't California have a budget to see it through? You would think so. Once a budget is approved, then the spending goes on. There are those of us who create a budget for the coming year, like me, and manage to not stick real close to it, like me.
Answer to question #2: This year, yes. Last year, yes. Pretty much every year before that, yes. Like many states leaders, they will tell you that the biggest expenditure is education. If you are running out of money, you look to see where you can make the cuts. This begins with the biggest expenditure. Say, your mortgage. Okay, go get refinanced and have a lower payment and a lot more years to pay. So states (California) look at the budget and say our biggest expenditure is education so lets lay off some teachers and close some schools. That will save a bundle. This has already been done. They don't look at smaller expenses that may not be really necessary.
So yeah we are probably going to be bankrupt. Thanks Warph for bringing it up!
Larryj
It is quite amazing that a state that supposedly boasts the 8th largest income can't pay its bills. The unheard of taxation going on there is unconscionable, the graft and freebie givaways to the welfare queens and kings and the big lotto jackpot for the illegal population.
Simple solution
1. hunt down, and export the illlegals. Period. No waiting period, do not pass go do not collect their 200 dollar welfare check.
2. Start with the gov and work your way down to the trash guy. Start cutting jobs, cutting pay by either 10% monetary value or remove some of those govt holidays that the rest of us don't get.
3. instead of government running things like trash service, street mainenance, ect ect contract it out.
4. LA could get a chunk of change if they leased out the airport instead of trying to run it as a govt entity.
5. i don't know much about what is spent by california. but why not toss those inmates in their prisons out on the road with a few chains on their legs, and give them some slingblades and axes to clear brush and cut down weeds, pick up trash and other road maintenance.
Quote from: srkruzich on June 16, 2009, 05:30:31 PM
It is quite amazing that a state that supposedly boasts the 8th largest income can't pay its bills. The unheard of taxation going on there is unconscionable, the graft and freebie givaways to the welfare queens and kings and the big lotto jackpot for the illegal population.
Simple solution
1. hunt down, and export the illlegals. Period. No waiting period, do not pass go do not collect their 200 dollar welfare check.
2. Start with the gov and work your way down to the trash guy. Start cutting jobs, cutting pay by either 10% monetary value or remove some of those govt holidays that the rest of us don't get.
3. instead of government running things like trash service, street mainenance, ect ect contract it out.
4. LA could get a chunk of change if they leased out the airport instead of trying to run it as a govt entity.
5. i don't know much about what is spent by california. but why not toss those inmates in their prisons out on the road with a few chains on their legs, and give them some slingblades and axes to clear brush and cut down weeds, pick up trash and other road maintenance.
Steve I don't expect you to know anything about California, but your post shows no knowledge of the real problems.
Yes illegal aliens are a big problem. As they are in the country as a whole. I know you understand this problem so I won't elaborate.
As far as point 2, 3, 4 that is not the problem and is wrong. Still I don't expect you to know what is going on here. I do appreciate your concern though. Truly, and I am not being sarcastic. I respect you and know how smart you are.
As far as 5 is concerned already a done deal. To some degree it has been done on point two.
David
Warph, I have no idea what the San Bruno Beacon is, but I wonder how in the hell you found the San Bruno Beacon. Tell Slappy to get your butt out on the golf course more often.
David
Quote from: dnalexander on June 16, 2009, 06:55:08 PM
Quote from: srkruzich on June 16, 2009, 05:30:31 PM
It is quite amazing that a state that supposedly boasts the 8th largest income can't pay its bills. The unheard of taxation going on there is unconscionable, the graft and freebie givaways to the welfare queens and kings and the big lotto jackpot for the illegal population.
Simple solution
1. hunt down, and export the illlegals. Period. No waiting period, do not pass go do not collect their 200 dollar welfare check.
2. Start with the gov and work your way down to the trash guy. Start cutting jobs, cutting pay by either 10% monetary value or remove some of those govt holidays that the rest of us don't get.
3. instead of government running things like trash service, street mainenance, ect ect contract it out.
4. LA could get a chunk of change if they leased out the airport instead of trying to run it as a govt entity.
5. i don't know much about what is spent by california. but why not toss those inmates in their prisons out on the road with a few chains on their legs, and give them some slingblades and axes to clear brush and cut down weeds, pick up trash and other road maintenance.
Steve I don't expect you to know anything about California, but your post shows no knowledge of the real problems.
Yes illegal aliens are a big problem. As they are in the country as a whole. I know you understand this problem so I won't elaborate.
As far as point 2, 3, 4 that is not the problem and is wrong. Still I don't expect you to know what is going on here. I do appreciate your concern though. Truly, and I am not being sarcastic. I respect you and know how smart you are.
As far as 5 is concerned already a done deal. To some degree it has been done on point two.
David
I pretty much just pointed out problems i see in kansas and georgia and figure similar problems if not the same problems exist. The problem really is we need less government, government services. I honestly have no clue as to how many departments in area there are. I suspect they have a comittee for everything. I Have lived where some cities have sold off water departments, trash services, to private companies which is a whole lot better than taxpayor paying for it. Fee for service usally works much better.
Give you a prime example. Atlanta Ga water and sewer was paying out around 50 -100k a month in fines for dumping raw sewage into the chattahoochie river. I know that they sold off the water to a company and they don't keep up with it so there was a resolution to bring ina new company. The sewage department though was still run by fulton county. They refused to upgrade the system saying they didn't have the money but they had money to pay fines. Go figure.
Atlanta is one of those cities that has been raped and pillaged by the succession of mayors that has been elected since 1980 when maynard jackson took office. Since then only the ones who were close to the mayors won elections when the mayors stepped down.
I think the last one is in prison hopefully for his crimes in office. I think shirley franklin is mayor now but i don't give her long before she's doing the same thing.
Last night I heard that there will be no bail-out for CA...Is this accurate?
Quote from: Catwoman on June 17, 2009, 10:57:28 AM
Last night I heard that there will be no bail-out for CA...Is this accurate?
Here is a copy of part of the June 16th press briefing by Press Secretary Gibbs
(The whole briefing can be found at the link below)
http://www.whitehouse.gov/the_press_office/Briefing-by-White-House-Press-Secretary-Robert-Gibbs-6-16-09/
Q Will the administration provide emergency aid to California, or are you rejecting that to avoid similar requests from other states?
MR. GIBBS: Well, look, obviously many states throughout the country, because of the slowdown in our economy, find themselves with severe budgetary constraints. The President believed and addressed part of this in the recovery and reinvestment plan by ensuring the largest amount of fiscal relief that we've seen moved to states in the history of our country.
It's obviously not an easy time for the state of California. We'll continue to monitor the challenges that they have. But this budgetary problem, unfortunately, is one that they're going to have to solve.
Q Following up on that, is the administration comfortable with the kind of precedent California would have to impose, specifically on its participation in Medicaid and SCHIP, which the President has identified as significant priorities of his administration, and in one regard, SCHIP, an achievement of this administration?
MR. GIBBS: I don't know if -- I don't know the degree to which we've analyzed each of California's individual cuts. Obviously we've had to make -- and states have had to make very difficult decisions as it relates to our budget. And these aren't easy times for states.
My vote would be "no".. and the same goes for Kansas or any other state that asks for a bailout. It wouldn't be fair for the rest of the country to pay for one state's mistakes. California got itself into this mess, it can go and get itself out.
No bailouts.. Learn to budget.. if you can't ...well... As the old saying goes, you reap what you sow.
Now... before you all think that I am a knee jerking hard ass.... let me say this...:
I have stepped back and without cynicism and anger and disgust..have given this some thought.
Of course my opinion hasn't changed.. but I will interject another way of saying it. .. :)
The problem with bailouts is the fact we are not changing behavior.
California has become a socialist state. They are buckling under the shear weight of the population and regulations...
( and the fact that they are supporting every illegal immigrant that crosses into their state) adds to that population.
I have a friend that I talked to about this ..and he does a lot of business in California and he told me he loves sitting in policy meetings and raising his hand and asking how it applies to California. He said every time he does that he gets a huge groan ...
IF we are going to bail them out, there has to come LOTS of changes. The problem is... how the changes are being made.
They would have to virtually start over.
State Government - dissolved. New elections.
Health Care - Reformed ... lets take some of Obama's ideas and try them in California first
Border - build a fence.
Illegals - round'em up ... ship'em out. NO exceptions!
*but everyone knows that ain't going to happen*
If the federal government is bailing them out then they need to pay back the feds with the principle, but the remaining 49 states get the interest.
If they want the feds help ... then they need to start over.
But none of what I write is going to happen.
Uncle Obama is going to hand the money over and the State of California will continue down the same path it is heading down.
And the stupid electorate will continue to suffer from "not my elected official" syndrome .
We are back to the answer of No. Let them fall.
Teresa, your post on the other thread (Joe Legal vs. Joe Illegal) really points up what you just said. I agree...Maybe, if CA is allowed to fall on her face, it will force the hard issues to finally be dealt with.
Gosh... golly... gee... since no one has an answer to this problem... and if you're looking for a good laugh.... lets look at Russian Professor Igor Panarin's answer to the whole situation. How's this for "Change," Obama:
What IF: (Prof. predicts)
California forms the nucleus of what he calls "The Californian Republic," and will be part of China or under Chinese influence.
Texas will be the heart of "The Texas Republic," a cluster of states that will go to Mexico or fall under Mexican influence.
Washington, D.C., and New York will be part of an "Atlantic America" that may join the European Union.
Canada will grab a group of Northern states Prof. Panarin calls "The Central North American Republic."
Hawaii, he suggests, will be a protectorate of Japan or China.
Alaska will be subsumed into Russia.
The rest of the story at:
http://online.wsj.com/article/SB123051100709638419.html
Quote from: Catwoman on June 17, 2009, 07:24:03 PM
Teresa, your post on the other thread (Joe Legal vs. Joe Illegal) really points up what you just said. I agree...Maybe, if CA is allowed to fall on her face, it will force the hard issues to finally be dealt with.
Illegal immigration is a big problem not just for California but for the whole nation. Correcting it will not solve California's budget crisis. After I get done arguing it with my fellow Californians maybe I will have time to do it here. What you all can learn from watching it is to learn from our mistakes and not let it happen in your state. Since Kansas gets more in federal aid than they pay it is just a matter of time before you start asking for a bigger bailout. Don't let it happen. I do find it fascinating that there is almost no discussion of Kansas politics or local politics on the forum. Let us be a lesson.
David
California's unsustainable spending without regard to actual revenues is well known. Foolish giveaways and payoffs to unions is the way of life for the Golden State.
Well, now the money is gone. But the leadership that put them in that predicament remains. Until all of them are gone, any idea of continued support is suicide for the rest of us.
It really is that simple. These people that are running this are nothing short of financial crackheads. Anything for another hit of money, but a steadfast refusal to change to sustainable ways. Until they change their ways, the outcome will never change. We can give California every cent we have left as a nation, but they will still spend it all.
Socialism is not a sustainable financial model. The California leadership has denied reality long enough. The credit cards must be pulled. The goofballs in the California Supreme Court need to be thrown out for continuing to make up new laws from the bench instead of interpreting laws from Sacramento.
In short, the entire state is dysfunctional. The thinking of the leadership is infested with stupidity and failure. Nobody can make a decision, they just read the latest popularity polls and figure out who should get a warm fuzzy today.
California 2009 equals the Titanic 30 minutes after they hit the iceberg. There is no way the ship is not going down. The only question is how badly do you want to be on it as it goes down?
Teresa you should work on your own states socialism.
David
My states socialism??
I don't think that there is any correlation between California and Kansas...
Give me some examples...
Kansas has it's share of problems... but......Kansas isn't the one on the chopping block right now....
I'm thinking California needs to be held up as a shining example of too much government run amuk! After everyone has seen what happens when liberals run government for too long, we then start the impeachment Imprisonment of all public "servants". This show will be attended by all the politicians in Washington, to serve warning of what will happen to them if they continue to use California as an example of how to run a country!
California's policies are basically the test version of what the Feds are doing. Just as the Feds, CA's leftist government built up a strong voting base of welfare and program dependent voters and they continue to spend. It's no wonder the democrats always want to reach out to to the illegals with amnesty plans - more dependent voters. Now things have gotten tight and there's no one left to pay for all of those programs. BHO's trying to catch up to our state's stupidity on fast forward. Hopefully he'll put the brakes on.
I guess we'll see................. :-\
Quote from: Teresa on June 17, 2009, 09:07:02 PM
My states socialism??
I don't think that there is any correlation between California and Kansas...
Give me some examples...
Start with the fact that you receive $1.12 in federal aid for every federal tax dollar that you pay(It is already posted on this site, back during a thread on how red states receive more federal dollars than the pay. Texas is one of the exceptions). Then maybe you could talk about Kansas or Elk County politics. Stop bashing California a large portion of that aid you receive is from the federal tax dollars Californians pay. You need to get your own house in order. I have nothing more to say to you on this subject.
David
http://www.cascity.com/howard/forum/index.php/topic,6228.0.html
http://democraticactionteam.org/redstatesocialism/index.html
Well.. like I said.. Kansas isn't the one on the chopping block. It very well might be someday. I won't be for a bail out then either. If California goes belly up and Kansas gets some of the brunt ..then we'll deal with it. If Ks can't handle their finances any better than California.. then we need to hit the ground also until we can.
All I'm saying is, I'm sick and tired of the bail-outs.
California.. Kansas.. the Banks ..whoever.. I say enough is enough..
I agree with you on the bailouts. As I said in my original post I am against it for California. If it happens things won't change and we will be in the same situation sometime in the future. Our biggest problem, California, US, Auto Companies, Wall Street the bailout just prolongs the pain. No one is willing to forgo their pork, subsidies, etc. Kind of the NIMBY syndrome that will keep you all from benefiting from your wind resource. Just like what keeps you all and California needing federal aid . I know I don't even have to get into the fact that we are doing all this on our children's credit card. Very short sighted.
David
Well the latest on the local talk show network is that this isn't a "bailout", it is "helping California with it's cash flow..." this straight from a congress woman and the infamous Senator Barbara Boxer. The congresswoman says the feds can't bailout a state; but it can help with some stimulus money to increase the cash flow of the 8th largest economy in the world.
Soooo.. I guess that is supposed to make it all ok...
It's not an economy if it's broke.. so it must be the LARGEST money pit in the world. :(
It doesn't matter what color you paint a pig...It's still a pig.
And a single note will never become a symphony. ;)
I think Gray Davis is laughing at all of us californians right now.
Part of our problem are ballot initiatives that are voted on every year. We go to the polls and see something along the lines of....
"shall the state of california issue a bond for 50 million dollars for a new fund that will give money to the police, fire department, and education"
I'm being very general, but you get the point. Now the bill is likely authored by some special interest groups, but it provides some good community programs, who's going to vote against it? These measures almost always pass, people vote without thinking about how it's going to be paid for.
Someone mentioned that we should stop paying out lottery winnings i think, the state lottery is a good source of income that funds a lot of programs, thats not the problem. The problem is that people, in general, don't take the time to pay attention to whats going on around them. A long time ago, you had to own land to vote. I think what the founders were really going after was that they only wanted intelligent people with strong ties to the future of the country to vote. Maybe i'm crazy, but maybe we need to get back to that principle (with a few alterations of course)
As far as bankruptcy, i don't think it will happen. If they go under, the state's credit rating will be in the toilet much further than it already is. That will have several consequences. first nobody will loan money to California anymore, which will mean that the federal government will have to bail us out. Second, the states credit rating will most likely affect the credit rating of other states and the federal government. Imagine how much trouble we would be in if people stopped buying our debt.
Why save california, the answer is easy. Not because we're a huge economy, not for the people of california, we screwd up our finances ourselves and we will suffer the consequences. I was driing back from LA on highway 5 and where there used to be fields of grapes, corn, and various other fruit trees, there was nothing but a big yellow sign that says "Congress created dust bowl." California needs to be bailed out because we feed the country.
Now, when a school system in california preforms poorly, the state comes in and takes over the administrative side. We do need a reset, we do need to dramatically change the way things are done. Maybe the federal government should attach some kind of similar strings, although i'm pretty sure thats not constitutional, but hey, neither are 1/4 of the laws that have been passed in the last 10 years.