California's Budget Suffers 'Major Blow'

Bloomberg:

California's revenue collections trailed its forecasts by $1.1 billion during the first three months of the fiscal year, showing new deficits are emerging in the budget Governor Arnold Schwarzenegger signed July 28.

Read the whole story: Bloomberg

Comments

[piper1233]

An Aboundance of National Resources, Massive Wine Industry, Triving Motion Picture lndustry, Concentration of Wealthy Residents, Numerous Business Districts, High Property, Gasoline, and Vehicle taxes, High level of Tourism. Why is this Great State Suffering so much more than the other 49 that are going through the same economic downturn with less resources. Maybe its time for the people of California to hire Governors based on the ability to govern instead of their Box Office Draw.

[KareninSac]

I drove my grandsons around the Capitol last night to see it lighted up. I told them that our govenor was the actor who played The Terminator. My 8-year-old grandson said "People, watch out. He is going to terminate California. It will be death and destruction, People." Of course, he was just hinking about the movie. But out of the mouth of babes, the say....

[bighat]

By reading many of the comments and omitting those blamingReagan, Bush, republicans and political idealism it seems all of California's budget problems (at least judged by the comments) comes down to:

1. Proposition 13
2. Illegal aliens add to the cost but that problem will not likely be solved by California.

Repeal proposition 13. Yes property taxes will go up. Other states and countries will make bids for your successful companies. But the fact remains if the commenters on this article are any kind of guide than all fault lies with the passage of proposition 13.

Can the govt repeal or will it have to be put on a ballot..

What other choice does California have? The only other choice I can see if a tax somewhat similiar to the FICA tax. But with 2 differences. FICA has a cap. The tax stops after a person makes x amount of dollars. This tax to get California out debtor's prison would be the same amount as FICA but it starts where FICA leaves off and it has no upper limit. . No extra taxes for the poor just for the rich. And best of all these taxes are bases on full income not net income. Should defintely raise some cash as well as get rid of people who do not want to pay for the environment and republicans.

[bighat]

Raise taxes by $2/gallon. Might get rid of the smon in LA.

Set up border patrol crossings. Charge everyone entering CA $100/carload.

Charge $20/carload. (so they will remember to stay away.

50% tax on anyone making more than 1 million. 50% tax on anyone dying leaving an estate worth more than $5million.

Increase the tax to 75% and charge the estate the cost of investigating if any lawyers or accountants try to make the estate appear less than it is.

Charge accountants and lawyers 25%income tax if they work for rich people. 50% if they help hide the rich's money and/or assets.

[lcdbsez]

The solution is simple: legalize the state's biggest cash crop -- marijuana. Regulate it and tax it -- duhhhh.

No more revenue ratholes for law enforcement, violent crimes will go down, no more clogged court dockets, tax revenues will turn the deficit into a huge surplus . . . it's all good -- except for Big Pharma (unless they get the monopoly on marketing and distribution), and Big Liquor, and Big Tobacco, and the gun makers and sellers, and the drug cartels -- the biggest opponents of ending drug prohibition.

It makes perfect sense -- that's why the goppies will never let it happen.

[paisleyface]

The condition of California's economy is God's punishment for it's treatment of His gay children. God hates discrimination.

[bighat]

Then God would have wiped quite a few countries off the world. While the U.S. is far from perfect gay people seem to have a better chance of living in the U.S. than in most countries like the middle east.

[Fred Hood]

ARNIE.....

Are you smarter than a fifth grader?

What could bring 2 billion or more to you states income, is proven safer than beer and aspirin, brings new small business jobs for those who need them and ends slavery in your state today??????

CANNABIS

FREE THE HIPPIES WE HAVE PAID ENOUGH.

Cherokee Fred Jesus

[Fred Hood]

Arnie,

one CANNABIS

word

SOLVE YOUR MONEY, NEW INDUSTRY, AND SLAVERY ISSUES....

CFJ

[sunbeltvoter]

Governator: You need to follow the example set by your good Republican Friends Bush and Cheney: The ONLY way to stimulate an economy is MASSIVE TAX CUTS FOR RICH REPUBLICANS. W and Friends did it and look, eight years later the national economy is in a beautiful state and booming and growing and the government is running a budget surplus in Washington. The W Republican Plan WORKS!!!!!!!!!!!!

So trot out your best Graz accent to say "Ve need maaasiv tax cuts for the wealthy to kure all the problems of Kalifornia."

See, wasn't that easy. Problem solved. Now go figure out how to spend your budget surplus. Yes, life is Good for all Americans if you follow the W Republican Plan.

[TheFobster]

Legalize marijuana. It's not a fix all, but every little bit helps. It's time for a common sense marijuana policy.

[DocSyracuse]

Based on Obama's statement on that subject, I wouldn't hold your breath.

[Fred Hood]

I hate the negative waves....

FREE THE HIPPIES............NOW

CFJ

[SteveDenver]

Tax the church, first; just Orange county would clear up the state debt in less than a year

[paisleyface]

Even easier - just ignore the collection plate. Stop paying for the pastor's luxuries, the catholic churches riches, the lds fantasies, etc.

[bighat]

Do you mean just ax Christian chruches or everything that could be considered a church or religion?

[paisleyface]

The booze lobby will never allow the legalization of marijuana anywhere. Considering the amount of alchohol consumption in the U.S. the booze lobby probably ranks right up there with the insurance lobby in terms of clout.

Marijuana legalization will never be a reality in the U.S. - signed Jack Daniels.

[2tango]

The California Problem is the Californians themselves.
A society totally drunk by the greed-clueless ignorants, and unscrupulous.

Nobody wants to pay taxes, and everybody wants first class services.

The wealthy got away unpaying what they should, and average "Joe" try to reap-off anybody in their way.

They live confusing Libertinism with freedom. (Becareful) in Sing-Sing they Love that freedom as well.

And the Mexican-Illegals contributing with the poverty that they bring along + crime+ deseases from the 18th Century.
Then The asians, they sell in the state all the goods they purchase in Asia, And then return the profits to the toilets they came from.


So in short... non of these groups pay taxes, And the Incompetence Between both parties (at high levels) is an Abomination. of coarse begining with Arnol.

[Brock Odumbass]

I'm guessing it's not as sexy as the headline makes it sound ...

[DocSyracuse]

That's a good guess, seeing as this is HP.

[NorthwestBBQ]

California's problem is they are exporting businesses out of the state.

[LyssaBarnes]

I said it before and I'll say it again, we need to find other tax revenue streams besides property tax. In my previous post others argued that property tax is the only sustainable revenue and there are no other ways to raise the amount of tax dollars that property tax can. I say we need to look at things differently. With some Califonia cities facing a foreclosure rate of over 15% property tax revenue isn't looking too stable. Also, along with people trying to adjust their overinflated mortgages the property values are falling fast, thusly affecting the tax rate. Other cities and states already know that they are facing a budget deficit even with the adjustments they have made.

If we focus on building more sustainable local economies more tax revenue can be raised from the new businesses. We could also increase the sales tax rate. We also need smarter governing where local leaders can elminate programs that are not needed and put the funding where it would be most useful. Privatize services that can be performed at a more competitive rate than overpaying government employees. The list goes on and on.

Yes I know this will tick some people off but it is apparent that we can no longer conduct business as usual.

[ResearchGuy]

Everyone knew another budget deficit was coming, and that the so-called balanced budget was a fraud. And they knew the news would come by October. Soon there will be a new report of an even larger "new" hole.

[CrzyRussell]

Everything that comes out of Sacramento is a fraud. Do you know why they raised the recycling tax? because Sacramento raided the fund and now that more people are recycling the program needed the money that was stolen! just another hidden tax here in CA. The taxin'; state.

[RButler]

What amuses me in CA, I live in LA County, is that, even with the high price of gasoline and license and insurance fees, there seem to be more cars, trucks, campers and motor-homes per house in the oldest, less affluent neighborhoods compared to newer, more upscale homes. I've thought that maybe all those vehicles parked in the driveway and on the street give the owners a sense of abundance. But, is it a misplaced priority? Do they have health insurance or are they spending their money on having more cars than people in the house and having all the premium cable channels. Of course, since they live in the older homes, the mortgage may be paid off but the scraggly landscaping doesn't seem to reflect that the owners have the resources to maintain their property very well. Who knows anymore.

Americans always defend their freedom to do as they please but sometimes their poor choices impact the society as a whole.

[Johan Baumeister]

The reason there are more vehicles in the "oldest, less affluent neighborhoods" is because there are more people living in those neighborhoods. "Upscale" people who can afford "upscale homes" can also afford more space for themselves. And high-density "upscale" neighborhoods are usually designed around transit and ample parking for their "upscale" residents.

Older neighborhoods just weren't designed for the population and traffic density that Los Angeles has grown to over the last half-century. This isn't really about poor choices on the part of poor Americans as much as it's about your desire to have someone to put blame on.

[OpposingViewpoint]

"R" is only a "Butler" in one of those upscale, less affluent neighborhoods, he can't f00l me. I grow a little more than tired of hearing his position espoused about those that have less than "they" do. Health Insurance? Yeah, we could all hope for a great insurance policy for our families. After all, we are s-i-c-k of hearing this kind of c-r-a-p from the "upscale crowd".
Have a good day Johan, in your aged and less affluent neighborhood. Careful to dodge the stones cast your way from the folks on the other side of the tracks.

[CrzyRussell]

Feeling a bit elitist today?