California, Indiana, 3 Other States Brace For Shutdowns

Los Angeles Times:

Reporting from Indianapolis and Denver -- The last time Indiana missed its deadline for passing a budget and had to shut down the government was during the Civil War.

But on Monday, as lawmakers raced to hammer out an agreement over school funding, state agencies began preparing 31,000 workers to be temporarily out of a job. Republican Gov. Mitch Daniels has warned residents that most of the state's services -- including its parks, the Bureau of Motor Vehicles and state-regulated casinos -- would be shuttered unless a budget is passed today.

Read the whole story: Los Angeles Times

Comments

[Lilith33]

Grover Norquist;e ;

Cutting the government in half in one generation is both an ambitious and reasonable goal," Norquist stated in May 2000. "If we work hard we will accomplish this and more by 2025. Then the conservative movement can set a new goal. I have a recommendation: To cut government in half again by 2050".[23] To that end, Norquist has been noted for his widely quoted quip: "I don't want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub."[

In 2004, Norquist helped California Governor Arnold Schwarzenegger with selling his plan to privatize the CalPERS system


California Public Employees' Retirement System (CalPERS) is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"[1]. In fiscal year 2007-2008, $10.88 billion was paid in retirement benefits[2], and in calendar year 2009 it is estimated that over $5.7 billion will be paid in health benefits

[Mildmannered]

what type of return has CalPERS received on its money the past four-five years?

[thestargazer]

Take inventory of your trinkets and get ready for the barter system.

[Queen Regnant]

I'm doing that as I type.

[ThermoChemist]

Top Twelve Indicators that the Economy is Bad

12. CEO's are now playing miniature golf.

11. I got a pre-declined credit card in the mail.

10. I went to buy a toaster-oven and they gave me a bank.

9. Hotwheels and Matchbox car companies are now trading higher than GM in the
stock market.

8. The President met with small businesses - GE, Pfizer, Chrysler, Citigroup and
GM to discuss the Stimulus Package.

7. McDonalds is selling the 1/4 ouncer.

6. People in Beverly Hills fired their nannies and are learning their children's
names.

5. The most highly-paid job is now jury duty.

4. People in Africa are donating money to Americans.

3. Motel Six won't leave the lights on.

2. The Mafia is laying off judges.

And my favorite indicator of all...
1. If the bank returns your check marked as "insufficient funds," you have to call
them and ask if they meant you or them.

[flapjack]

"11. I got a pre-declined credit card in the mail.". LOL, nice

[Mnemanth]

Which state is making yarn?

[judiNJ]

LOL!

[viperhawk2k4]

Its is not a matter of "right" and "left". All of congress both sides are corrupt and crooks! this theft of america started when Wilson signed the federal reserve act, and started the ball rolling for the banksters to take our government. i really don't care who says what, the FACT is both sides are destructive to this country!

Maybe if you "conservatives" and you "liberals" will quit fighting each other and try and save this great nation Both partys are to BLAME!

[DallasMike]

viperhawk2k4

You said it.

[Mnemanth]

The whole "party" business, and related partisanship, is a distraction. Keep the people busy with divisivness while the fleecing continues.

[rbspickles]

Ahhhh, I see the sheeples have awoken!!!! This is GREAT :D Keep repeating and repeating these messages to everyone who will listen. We will take our country back from these theiving, money hungry narcisists in DC!!! Long live America!!!!!

[JoeBlough]

"great nation" - except for the torturing and invading.

[viperhawk2k4]

I meant minus the bad stuff. lol

[larry278]

To beat a dead horse: If a state goes bankrupt goes bankrupt in a de facto sense, what happens? May a state or the states creditors petition a federal court to be declared bankrupt in a de jure sense? Would the Congress have to establish procedures for a state or its creditors to seek the protection of federal bankruptcy? Since 5 states probably will shortly become bankrupt in a de facto sense my questions will need to be answered shortly.
A state which is bankrupt can't meet the duties & obligations of a state in the USA.
Who takes over the duties & obligations of a US state when the state is bankrupt in a de facto sense & can't function th as a state in the USA?
Would it be possible to reorganize a state that's bankrupt?
Could a bankrupt state be reorganized as a territory, &/or be stripped of the powers of a state, &/or be administered by a federal court?
How could a formerly bankrupt state petition to be discharged from bankruptcy?
Pres Obama, &/or the US Congress, &/or US Federal Courts will have to decide the the answers to these & other questions re: a bankrupt state soon.

[judiNJ]

I don't know, but the country of Iceland went bankrupt in the fall. I don't even know what is happening to them. Maybe the World Bank helps out.

[MamaBird62]

California is on the brink of "bankruptcy" it seems every other year, yet there they are.
What happens is that they get a bad credit rating, which California has had for a while, they have to pay more to borrow funds, and they can't spend on things on which they could spend in the past, like decent schools and public parks.
The major difference between "bankruptcy" of a state and that of a business or individual is that the state has guaranteed income, tax revenue.
Just because it can't meet its current obligations as originally agreed doesn't mean the state gov't shuts down.

[econ1]

The Democrats are making the Republicans look like fiscal conservatives.

We seem to have confirmed that neither party can keep from spending more than anyone has.

It is great to say that someone else should pay for day care, education through college, food, health care, retirement­......but it doesn't seem to have worked before.

Here in CA we have a mother who gave birth to 8 children (procedure paid for by the taxpayers), who already had several children and all of them will be supported from now on by the state....a­nd people wonder why we are broke.

[Lilith33]

LOL!!Its all the octomoms fault!!

[goingnow]

It's time to reduce the number of state lawmakers and their expensive health care plans and perks, especially in Pennsylvania.

[Bladernr1001]

All your socialist big government boondoggle chickens are coming home to roost here.

Government is too big and has been burdened with too many fucntions.­..none of which they can do well any more.

The government needs to shrink....­if the pols won't do it....then eventually market forces do.

Read and weep.....l­efty liberals.

[goingnow]

You do know this is the result of the depression­/recession the Republicans left the country in, don't you? We will all be lucky if we survive it. I know they've tried to keep up a confident front and I really believe that Obama has turned the tide of it and signs of recovery are here, but it will take time to clean up the mess.

[CaptainHowdy2]

Funny... government grew larger during the Bush administration than ever in the history of the country.

[Bladernr1001]

Which is why his party was repudiated.

[JoeBlough]

Government isn't too big, it was just poorly run for eight years. Republicans say government is the problem, get elected, then prove it.

[Bladernr1001]

It is impossible to run something this gargantuan efficientl­y...there are just too many moving parts.

[jsgaetano]

All these states are run by Republicans.

Oh wait, that's right, conservatives can never accept blame for their failures. Well, um... carry on.

[Bladernr1001]

Get hold of the facts. CA anyway has been run by the dems for over 30 years now.

[RandVictims]

You people in Kalleefawneeya really know how to pick 'em.

[thestargazer]

I applaud the governor for standing firm. After all, Californians overwhelmingly voted against the recent ballot measures which were really tax increases to close the gap. If the majority say no to taxes than why should the governor allow the legislature to overule the electorate with other taxes.

The governor appears to be the only one looking out for California's citizens.

I saw cut services, it's what voters want.

BTW, I'm a democrat so spare the BS!

[Mildmannered]

"Consumer confidence falls in June
10:48am: After climbing for two months, the key index drops as more Americans say jobs are hard to find."

Wait until the states including California start laying off hundreds of thousands of people.

[VikingQuest]

Ever think those people shouldn't have been hired with money they don't have to start with?

The last 20 years, the CA Budget has went from $36 billion to $130+ billion.

[ReckingBall]

Its going to get ugly. Be sure and wave and smile as you pass the bus stop.

[DestinationsUnknown]

sounds like you are a cheerleader for failure

country first motto redefined?

brilliant

[ReckingBall]

When Socialism fails the State, I do tend to cheer. Cant help it, I'm a Conservative. Dont worry though, my party is out of power, and I still will send the leftist tens of thousands of dollars to do what they think best.

[VikingQuest]

Many valuable lessons are learned from failures, it teaches the best and brightest to move forward in a better direction.

[minapod]

Does this mean I won't have to show up for my jury duty appointment next month in Los Angeles?

[VikingQuest]

States that have overspent (which is most of them) need to take the pain now. They have acted irresponsible and now need to realize their mistakes.

State & Federal spending has been out of control for about 15-20 years, I know Minnesota's budget has tripled in the past 15 years yet the population has remained about the same . . . yet Minnesota just signed on a "pay freeze" when most private industries have cut back.

Think about that for a second:

Who pays the bills for Government? The private sector.

What happens if Government doesn't take in as much money from the private sector? They don't have as much money to waste, yet they aren't smart enough to cut back.

[studlyguy]

I've live in Cali, and notice the downward spiral started in early 90's ,and as with everything the ripple downward effect takes time till it hits and causes catastrophe , and we are here and I see no light ,all I see is the abyss for Calif.

[VikingQuest]

If you want to know why California is on a downward spiral, all you need to do is check their budget history:

1983-84 - $26.8 billion (Population 26 million)

2006-07 - $131.4 billion (Population 36 million)

So the budget & spending has increased 5 fold, the people paying in hasn't even doubled.

[thestargazer]

Nice post....br­ings it home!