Thread: California Budget Is Already in the Red 10 Weeks After Passa

California Budget Is Already in the Red 10 Weeks After Passage

By William Selway and Michael B. Marois

Oct. 10 (Bloomberg) -- California Governor Arnold Schwarzenegger will know within a month whether a $1.1 billion drop in revenue collections is part of a growing budget shortfall or an isolated event, his budget spokesman said.

Revenue in the three months ended Sept. 30 was 5.3 percent less than assumed in the $85 billion annual budget, state controller John Chiang reported yesterday. Income tax receipts led the gap, as unemployment reached 12.2 percent in August.

“The culprit here appears to be estimated quarterly personal income tax statements,â€

Don't come to the American tax payers for a bail out...........go to Mexico since they are mostly to blame for California's bankruptcy.

Words of wisdom, ELE.
And who in the world would invest in CA bonds, when the state is in debt over their eyeballs? They could default any time and unless the feds step in, not only have you lost your interest from those bonds, but you lose your principle as well.

I could be wrong....and hope I am, but there are three states that come to mind about rioting when the fit REALLY hits the shan:

1. MI (specifically Detroit)

2. New York

3. Cali


...not necessarily in that order.

If you are talking about the 1960s, there were also the riots in DC.