OUR GOVERNOR'S game of chicken with the legislature not only sunk us billions of dollars deeper in debt last week, it caused one of the nation's top rating agencies, Fitch, to downgrade its rating on California's long-term bonds yesterday to "BBB," two notches above junk status.This means the state will likely be forced to pay even higher interest rates when borrowing money. Also yesterday, a group of leading banks announced they'll only accept the state-issued IOUs through Friday.
Add this to the governor's proposal to throw nearly a million children off health insurance rolls, close state parks, lay off more teachers, shut down CalWORKS, and rescind grants to college students.
All this trauma would keep most people in charge of the world's eighth largest economy up at night, but not our governor. In a recent interview in New York Times Magazine, Arnold Schwarzenegger seemed at peace with the bedlam going on around him.
Schwarzenegger reclined deeply in his chair, lighted an eight-inch cigar and declared himself "perfectly fine," despite the fiscal debacle and personal heartsickness all around him. "Someone else might walk out of here every day depressed, but I don't walk out of here depressed," Schwarzenegger said. Whatever happens, "I will sit down in my Jacuzzi tonight," he said. "I'm going to lay back with a stogie."I've run out of words to express my annoyance with this man. So tonight I'm letting Photoshop tell the story.
Right-on! Governor DeadWeightzenegger is playing to his supporters. Unfortunately though, so is the legislature.
Marie, you once gave 1938 as the year that the 2/3 majority rule was instituted in California. Do I remember correctly? If so, what was your source for that information?
We've had the 2/3 in place to pass a budget since 1938. The 2/3 to pass a tax increase was instituted in 1978. We are the only state to have both.
I dug up that fact from the Public Policy Institute of California.
Everyone needs to get to work.
Many thanks for the info.
The governor should declare a state of emergency. He could then compel the legislature into continuous session until they have a budget. It's going to take some strong incentive to get that bunch to pay attention to it's job instead of it's political skin. But Arnie has no interest in doing his job.
Nevada is beginning to look more and more desirable as a place to live. Let Californians pay for both states since they're so dumb as to do it year after year.
Let’s make sure we show who is source of this roadblock—it’s Republicans who have pledged not to tax oil royalties in California and the Governator who came to power by canceling a car tax with great bravado that was the tipping point for our slide into this serious debt . To offset this brash political act Arnold just filled the hole by borrowing more at higher rates against our future. Time to have a recall election for Republicans like Tony Strickland who narrowly won last November by only 857 votes!
I think it's been said enough, here and elsewhere that both political parties, Repubs and Dems, as well and the general "sheeple" electorate bear responsibility for the mess that California is now in.
Democrats spend, Repubs refuse to finance, the "sheeple" vote in Proposition after Proposition that lack funding...it's almost like a perfect storm o' stupidity!
At this point, I'd almost rather have Larry, Moe and Curly...even Curly Joe running the government at this point...or maybe Rufus T. Firefly.
Whatever it took to get here, right now, the big problem is the minority Repubs that hew to their "minority government" agenda, paying obeisance to Grover Norquist and company, refusing to co-operate in collective solutions.
Do they really think that a minority elected them so that they could run...and ruin..everything?
I almost don't want to blame Schwarzenor for the problem...I can see his thinking that forcing a game of chicken will bring solutions. Unfortunetly I don't think the Repubs read Arnie's script....and as a result..all cars will go over the cliff!
Our Girly-Man Governator is not the only Sacramento Nero fiddling while the State's fiscal house burns and crashes around all of us..
Seven days after the start of the new fiscal year, California still has no budget. And the entire State is being held hostage by Sacramento's Fiscal Terrorists, Democrats and Republicans alike..
In fact today, Majority Democrats thrice-proved that they are as out-of-touch with the pain and suffering of California's working class families, vendors and taxpayers as is Arnie and the Republicans..
First, the Assembly was scheduled to hold a hearing today on AB 606, by Democratic Assemblywoman Fiona Ma which created the California Blueberry Commission.
Over on the State Senate side, Democratic State Senator Rod Wright's SB 190 was slated for hearing in that chamber. SB 190 imposes strict rules on what constitutes pure pomegranate juice, rules sought by the largest producer and distributor of, POM Wonderful, which is owned by California billionaire Stewart Resnick.
Resnick is quite a significant figure in California politics and is the owner of Paramount Farms, the Franklin Mint and Teleflora. Resnick is a major donor to legislators of both major parties and to political campaigns, including more than $197,000 in contributions during the 2007-09 contribution cycle.
Finally, Marie, your new found hero Noreen Evans was busy over in the Assembly advocating for the passage of her AB 1216. Given that Ms. Evans is the Chair of the Assembly Budget Committee, it might be reasonable to assume that AB 1216 might be her latest solution to the State Budget crisis..
Well on the face of it, as reasonable as that assumption might be, it would be dead wrong. Assemblywoman Evans' AB 1216 changes the definition of honey!!!
Creating a Blueberry Commission? Establishing Strict Rules for Pomegranate Juice? Redefining Honey? This is what passes for Democratic Legislative priorities on the seventh day of the fiscal year without a State Budget? As a life-long Democrat, I find this morally unconscionable and politically stupid!
Frankly Marie, they are all out of touch with reality up there in River City. The Legislative Lunatics are running the Assembly and State Senate Asylums and our Girly-Man Governator is a poor substitute for Nurse Cratchett.
NostraDemus
This is much bigger than just the state of CA. CA is demonstrating the future of Social Sec and Medicare. By the time Medicare begins to go in the red, the Chinese and Arab lenders will have other places to park their cash. The Congress will find that interest rates spike as they try to do exactly what CA is doing. Borrowing what they do not have.
Why your housing values and tax receipts will continue to drop into 2010
http://www.doctorhousingbubble.com/
http://www.realclearmarkets.com/articles/2009/07/06/get_ready_for_14_percent_unemployment_97295.html
I don't know if Steinberg's blowing smoke (sorry couldn't resist this) or not but he held a press conference today to say that everything is on hold while they recalculate Prop. 98 formulas. I guess blowing past the deadline last week messed the numbers up. So while they were waiting they trotted out the silly bills. What can I say?
Asks, "Is California the future?"
"...
Rarely has the chasm between elite political discourse and grubby popular opinion been displayed in such sharp relief. The implications of this citizen revolt—and the hostile reactions to it—stretch far beyond Nevada’s western border. California is the Ghost of Federal Government Future.
During the last two decades, the Golden State has been transformed from what was once known as the nation’s most anti-labor outpost to a state essentially run by public-sector unions. Nearly three in five public sector workers are unionized, compared to less than two in five public employees in other states. ...."
http://reason.com/news/show/134445.html