California May Be Forced to Issue I.O.U.’s

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Las Vegas NV
 Quote:
LOS ANGELES — Signaling that California is slipping deeper into financial crisis, the state’s controller said Wednesday that his office would soon be forced to issue i.o.u.’s to scores of the state’s creditors, as lawmakers failed at their first attempt as a body to close the state’s multibillion-dollar shortfall. If the i.o.u.’s are issued as threatened, it would be the first time since 1992 — when Gov. Pete Wilson paid roughly 100,000 state employees with them — that the warrants were used to hold over those to whom the state owed money. Before that budget crisis, California last issued the warrants during the Depression. “Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression,” the controller, John Chiang, said in a written statement. He added, “Unfortunately, the state’s inability to balance its checkbook will now mean short-changing taxpayers, local governments and small businesses.” The issuing of the i.o.u.’s would reflect the state’s lack of cash flow and its Legislature’s inability to agree on a way to close the roughly $24 billion budget gap, as tax revenues have continued to fall.
http://www.nytimes.com/2009/06/25/us/25calif.html?hp
 
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4,830
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Kansas
Wouldn't it be great if you people from California could give your lawmakers some vouchers.......to the soup lines!
 
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1,385
Location
Houston, TX
No surprise....two of my friends in Riverside CO. got IOU's instead of tax refunds earlier in the year, but stern warnings about paying their property taxes, etc. on top of the now nearly 10% emergency sales tax. One of those friends is a high school teacher (public), and they are constantly threatened with getting IOU's instead of paychecks (State not paying the Districts), and potential for getting paid in September for June-July-Aug months of no pay.....do that, and more foreclosures and bankruptcies....and you wonder why I moved away from California one year ago tomorrow!!!!!!!!!!!
 
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55
Location
CA
Kruse, I would love to give our legislators vouchers for their lack of compromise, but we tried that before (they do not receive a salary--it is supposed to be forfeited--if the budget does not pass on time.) However, the legislators always seem to suspend that provision when they finally do pass a budget!!!!!!! Also, the state can't soley issue IOU's. According to the courts, all employees must receive minimum wage for the hours worked. The remaining balance of their salary can be issued an IOU.
 
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16,125
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Silicon Valley
 Originally Posted By: Kruse
Wouldn't it be great if you people from California could give your lawmakers some vouchers.......to the soup lines!
The problem is not the law maker, but the special interests, hippies, union workers, and high housing costs. 1) You have to pay someone so they can afford the living expense 2) These people join unions and make sure the pay is high 3) These unions lobby the heck out of the law makers 4) The competing special interests feel threatened, and lobby some more You get stuck with bestards from both side, when you just want to get the heck out of politics.
 
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18,449
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East of IGO
 Originally Posted By: Kruse
Wouldn't it be great if you people from California could give your lawmakers some vouchers.......to the soup lines!
The politicians will get reelected and then the people in Kalif will vote them a raise because if they get more pay they will do a better job.
 
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15,052
Location
Canada
I'l never understand California....most populous state in America, has some of the highest-income areas in America, including the whole entertainment industry...and they can't balance their budget? Increase taxes, user fees, etc.. and balance the books - seriously, how many high-rolling people will REALLY leave - where else do you find that kind of lifestyle?
 
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ME
 Originally Posted By: addyguy
I'l never understand California....most populous state in America, has some of the highest-income areas in America, including the whole entertainment industry...and they can't balance their budget? Increase taxes, user fees, etc.. and balance the books - seriously, how many high-rolling people will REALLY leave - where else do you find that kind of lifestyle?
Size is often a disadvantage. You'd think cities could have lower taxes because it's so efficient... you can have a cop at anyone's door in two minutes because of the population density, but that's where it ends. Look at a school system for a major inner-city district compared to quiet suburbia-- the suburbanites fight harder, it seems, and you don't have two dozen vice prinicpals justifying their existences. Regrettably, create the biggest of something and all kinds of hangers-on attach themselves to the system, and/or involve themselves because of ego. Would a movie star be governor of Wyoming? Who'd care? Same with carpetbagging senators choosing populous states to represent.
 
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Columbus, Ohio
 Quote:
Increase taxes, user fees, etc.. and balance the books - seriously, how many high-rolling people will REALLY leave - where else do you find that kind of lifestyle?
But they are often hamstrung by all those tax-limiting "propositions" that have been passed for decades. John
 

Tempest

Thread starter
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10,611
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Las Vegas NV
 Originally Posted By: John_K
 Quote:
Increase taxes, user fees, etc.. and balance the books - seriously, how many high-rolling people will REALLY leave - where else do you find that kind of lifestyle?
But they are often hamstrung by all those tax-limiting "propositions" that have been passed for decades. John
More like the bond propositions that spend even greater amounts of future generations money. The Feds want to insure their bonds though so that will make it all better...
 
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39,806
Location
Pottstown, PA
 Quote:
Size is often a disadvantage. You'd think cities could have lower taxes because it's so efficient... you can have a cop at anyone's door in two minutes because of the population density, but that's where it ends. Look at a school system for a major inner-city district compared to quiet suburbia-- the suburbanites fight harder, it seems, and you don't have two dozen vice prinicpals justifying their existences.
Once any institution gets to be too big, it flounders under its own weight. In something like a police dept or school district, you're not just administering the service that you're providing, you're servicing the institution that maintains it. It's the same with a church ...something like the Red Cross ..United Way, YMCA.
 
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Illinois
If I were getting IOU's for tax refunds, I'd change my withholding immediately and start paying estimated tax payments, with the IOU's of course.
 
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East of IGO
 Originally Posted By: John_K
 Quote:
Increase taxes, user fees, etc.. and balance the books - seriously, how many high-rolling people will REALLY leave - where else do you find that kind of lifestyle?
But they are often hamstrung by all those tax-limiting "propositions" that have been passed for decades. John
too much money is being spent the politicians and government workers are draining the $$$$ with the compensation packages and retirements and the income redistribution to the welfare people doesn't really help.
 

Kestas

Staff member
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13,820
Location
The Motor City
They can't borrow money from the banks (they won't lend), so they're borrowing from the employees. Very sad. California has some of the richest people in the world, and the highest taxes in the Union, and it's still not enough money for them. Very sad and shameful.
 
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1,053
Location
FL
You know what's even more shameful. Now of course this isn't a univeral truism among the elite of California but I've watched many a left leaning Californians make fun of Texans. Texas balances its budgets. Now those backwards Texans may bet a chance to pay for California's excess. Oh, and so might the hill folk in Arkansas because they too balance theirs. Kinda makes me ill thinking about it.
 
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1,358
Location
Las Vegas
California could have an income bigger than Obama's proposed outlays, and they still wouldn't be able to balance their budget. People move from 49 states to California to go on welfare. Social services is where they are going bankrupt. You aren't allowed to complain, because it's "For the children!" I don't see it getting any better. The productive people and businesses are going to move out of state (like they have been) and leave what's left to implode. Funny thing. You take away people's incentive to be productive, and they won't be productive any longer. Pay them to not work, and they won't work. Of course, the libs will blame all the problems on Prop 13.
 
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