California Cash Flow Crisis Update
 

California Cash Flow Crisis Update

THURSDAY, MAY 7, 2009

Posted by Tyler Durden at 4:00 PM

In the giddy smoke from all the green shoots, people kinda forgot that the largest U.S. state is on the verge of bankruptcy. Zero Hedge is happy to remind them.

Continues: http://zerohedge.blogspot.com/2009/0...is-update.html

Source: http://solari.com/blog/

Re: California Cash Flow Crisis Update
 

Schwarzenegger Tells Lawmakers Deficit May Swell to $21 Billion

By Michael B. Marois

May 12 (Bloomberg) -- California’s budget deficit has grown so severe that Governor Arnold Schwarzenegger said he may be forced to release 40,000 prisoners or lay off 51,000 teachers if voters next week reject three budget balancing measures.

The state’s projected deficit will swell to $15 billion between now and June 2010, Schwarzenegger told lawmakers late yesterday. Half the gap falls in the current fiscal year that ends in seven weeks. If voters reject plans to sell bonds backed by lottery profits and siphon tax receipts from tobacco and high earners already dedicated to special programs then the deficit would expand by another $6 billion.

The ballooning deficit comes three months after lawmakers passed a package of spending cuts and tax increases to fill a record $42 billion shortfall and end a cash shortage that prompted officials to prepare to issue IOUs for the first time since the Great Depression. In the intervening months, tax revenue declined further along with the state’s economy.

Article continues: http://www.bloomberg.com/apps/news?p...efer=worldwide

Source Mike at Fever I Am:

Re: California Cash Flow Crisis Update
 

Hasta La Vista, Arnold
 

Hasta La Vista, Arnold :lightsabre:

Don't come back!!! :nono:

What California's Budget Mess Means for America

He was the perfect political superhero, sent to rescue California from spend-happy politicians at just the right time. And yet Arnold Schwarzenegger’s reign as governor has turned into a disaster flick that could spell catastrophe for the Golden State—and the whole nation.

In 2003's historic recall election, the former Mr. Olympia pummeled dozens of candidates—from incumbent Gray Davis to former child actor Gary Coleman to porn star Mary Carey—on the road to Sacramento. He promised to abolish the odious car tax hike implemented by Davis. And to balance the budget, cut taxes and spending, and make California more business-friendly.

"He promised to stop the crazy deficit spending, cut up the credit cards, live within our means. And he did exactly the opposite. Schwarzenegger increased spending faster than we saw under Gray Davis," says Rep. Tom McClintock (R-Calif.), who was a state senator—and one of Arnold's challengers—six years ago.

Continues with VIDEO (9:56): http://www.reason.tv/video/show/783.html

California's budget crisis even worse than admitted
 

May 19, 2009

California's budget crisis even worse than admitted

Thomas Lifson

If polls are correct about the outcome of today's vote on a series of ballot measures to raise taxes and supposedly rein in spending, California's tax-happy government will find itself in a corner. The measures look as though they will be defeated. California voters have a history of turning down tax increases when they are put up as ballot measures.

John Wildemuth of the San Francisco Chronicle outlines the two scenarios offered by the Governator following the election:
Schwarzenegger announced his May budget revisions Thursday, two weeks ahead of schedule, so he could release the figures before today's election. He released two plans: one assuming voters approve the measures, the other assuming the measures fail.

The first projects a $15.4 billion deficit and calls for $6 billion in borrowing and deep cuts in education, social services and other state programs to balance the budget. The second, which projects the loss of the $6 billion the measures would raise, slashes state programs deeper to close a $21.3 billion shortfall.

Continues: http://www.americanthinker.com/blog/...isis_even.html

Source: http://solari.com/blog/

Landmarks for Sale?
 

Landmarks for Sale?

May 20 - Cash-strapped California considers putting state property up for sale.

Katharine Jackson reports.

Video: http://www.reuters.com/news/video/vi...nnel=worldNews


California lawmaker proposes selling San Quentin prison

Wed April 1, 2009

(CNN) -- If one California lawmaker has his way, his cash-strapped state may have an arresting real estate listing on the market: San Quentin State Prison.

State Sen. Jeff Denham is proposing selling the 432-acre prison, which offers a breathtaking view of San Francisco Bay, to garner money for California.

"Our inmates just don't need an ocean view. Let's level it off," said Denham, a Republican.

Article continues: http://www.cnn.com/2009/US/03/31/oceanfront.prison/