Thread: Schwarzenegger: California Is Broke, Plain and Simple

Schwarzenegger: California Is Broke, Plain and Simple

Wednesday, June 3, 2009 8:47 AM

SACRAMENTO, Calif. -- California's worsening budget crisis holds both pain and promise, Gov. Arnold Schwarzenegger told lawmakers Tuesday as he urged them to quickly solve the state's fiscal mess.

The state faces deep cuts to education and other core programs to plug a $24.3 billion deficit, while a steep decline in tax revenue has created a looming cash crisis that jeopardizes its ability to pay its day-to-day bills.

Even in such dire circumstances, Schwarzenegger said California can emerge more efficient and fiscally stable if lawmakers take steps to restructure government and rethink the services it provides with the revenue it has.

"We can only spend what we have. That is the harsh but simple reality," he said in the rare midyear appearance before a joint Legislature session. "Our wallet is empty, our bank is closed and our credit is dried up."

The governor spoke just four months after he and lawmakers agreed to a two-year budget package that was intended to close a deficit of $42 billion through mid-2010. Declining tax revenue and overly optimistic assumptions about the tax increases they approved in February reopened the state's deficit.

Schwarzenegger said state tax revenue has dropped 27 percent from last year and has returned to 2003 levels.

Controller John Chiang warned legislative leaders last week that California will run out of money to pay its bills on July 29. He called for a balanced budget by the June 15 constitutional deadline so the state can access short-term loans in a tight credit market.

Its new fiscal year begins July 1. "California's day of reckoning is here," Schwarzenegger said.

He has outlined a series of cuts that include an additional $5.2 billion reduction in funding for public schools, laying off 5,000 state workers and further cutting the pay of 200,000 others. He has proposed eliminating welfare for 500,000 families, terminating health coverage for nearly 1 million low-income children and closing 220 state parks.

"People come up to me all the time, pleading 'Governor, please don't cut my program.' They tell me how the cuts will affect them and their loved ones," Schwarzenegger said. "I see the pain in their eyes and hear the fear in their voice. It's an awful feeling. But we have no choice."

The Republican governor and legislators of his own party say they will not raise taxes, after agreeing to $12.8 billion in higher sales, personal income and vehicles taxes earlier this year.

The Democratic leaders of the Assembly and Senate pledged to work quickly to resolve the deficit but said they would resist cuts that would wipe out vital programs, particularly those for children and the poor.

"This is going to be traumatic to a lot of programs and a lot of people, but we are committed to avoiding the wholesale elimination of major investments that matter to the people of California," said Democratic Senate President Pro Tem Darrell Steinberg.

In the May special election, voters rejected all five budget-related measures placed on the ballot by Schwarzenegger and legislative leaders. Revenue has continued to plummet as residents have reduced spending and unemployment has soared to 11 percent.

Democratic lawmakers and the Schwarzenegger administration have even inquired about having the federal government give California a loan guarantee, an unprecedented step that is seen as way for the state to lower its borrowing costs.

Chiang, the state controller, said Tuesday that such a guarantee appears unlikely but said U.S. Treasury Secretary Timothy Geithner has indicated the administration wants to help.

He also advised anyone who thinks Schwarzenegger is bluffing about the severity of the crisis to think again.

"They ought to stop denying it," Chiang said. "This is the worst economic cash situation here in California since the Great Depression."

http://moneynews.newsmax.com/economy/ca ... 20957.html

If California would have gone to the federal government or took action years ago to stop the illegal invasion this could have been prevented

We cannot allow CA to get a bailout from the Gov. If we do, they will own us and we will lose our soverignty.

How many spending bills did Ahnie sign with no thought if revenues would actually support the pork projects?

"He has outlined a series of cuts that include an additional $5.2 billion reduction in funding for public schools, laying off 5,000 state workers and further cutting the pay of 200,000 others. He has proposed eliminating welfare for 500,000 families, terminating health coverage for nearly 1 million low-income children and closing 220 state parks."

The $5.2 billion reduction in funding for public schools should AFFECT ILLEGALS FIRST.

The welfare cuts to 500,000 familes can be done cutting ILLEGALS.

Terminating health coverage for nearly 1 million low-income children can be done by terminating ILLEGALS.

If the above is NOT done, the CITIZENS should start raising h---!!!!

Originally Posted by swatchick

If California would have gone to the federal government or took action years ago to stop the illegal invasion this could have been prevented

California voters tried to do something about it back in 1994 with Proposition 187 which the courts went against the will of the people and declared it void.

Originally Posted by kniggit

Originally Posted by swatchick

If California would have gone to the federal government or took action years ago to stop the illegal invasion this could have been prevented

California voters tried to do something about it back in 1994 with Proposition 187 which the courts went against the will of the people and declared it void.

I highly doubt that even back then, something would have been done by the fed. It was by design by the NWO idiot boys, including George Sr. to not enforce the enforcement end of the 1986 amnesty sham. It was intentioally ignored. That's where the problem really originated from. Had someone from CA gone to the Fed, nothing would have been done. just like they aren't doing anything about it today..even with bio-terrorism knocking silently at our back door. It's like they want an attack to happen..just more white middle class workers out of the way and more room for hispanic slave workers.

Arnie has orders not to directly affect illegal immigrants with budget cuts and that's because illegal immigration is treated like a civil issue rather than an issue of legality. That's the propaganda that the globalists are winning on. They use the race card at every turn.

Due to the budget crisis, state lawmakers are talking about cutting billions of dollars out of our state budget. They are not talking about the over 1 billion dollars we are spending on the illegal aliens in NC each year. We hope to change that conversation with this press release followed by a series of interviews on talk radio shows across NC!

ALIPAC Press Release

NC: Cut Illegal Immigration Instead of Education and Health care

http://www.alipac.us/ftopicp-906325.html#906325

Sounds just like California.

Originally Posted by CitizenJustice

The $5.2 billion reduction in funding for public schools should AFFECT ILLEGALS FIRST.

The welfare cuts to 500,000 familes can be done cutting ILLEGALS.

Terminating health coverage for nearly 1 million low-income children can be done by terminating ILLEGALS.

If the above is NOT done, the CITIZENS should start raising h---!!!!

I agree but you know in CA these days, over half of those affected by these cuts ARE illegal, or were at one time.

If alot of the cuts are to programs for illegals maybe they will start to leave on their own.