California Contemplates Ultimate Reform - NO Welfare

[peaceandlove]

California Contemplates Ultimate Reform - NO Welfare

By Cynthia Hubert
Sacramento Bee
Thursday, June 4, 2009

Could California become the first state in the nation to do away with welfare?

That doomsday scenario is on the table as lawmakers wrestle with a staggering $24.3 billion budget deficit.

County welfare directors are "in shock" at the very idea of getting rid of CalWORKs, which has been widely viewed as one of the most successful social programs in the state's history, said Bruce Wagstaff, director of the Department of Human Assistance in Sacramento.

"It's difficult to come up with the right adjective to react to this," Wagstaff said. "It would be devastating to the people we serve."

Article continues: http://www.mcclatchydc.com/nation/story/69467.html

SOURCE: http://solari.com/blog/ Catherine Austin Fitts' blog

[sleepingnomore]

So then what happens, the population this program services moves from state to state until no help is available. The system is broken but you can't let it fall apart without plans to help the people it serves. The domino effect will hit again with private day care centers going under, local stoes, loss of more jobs, housing vaccancies.

I would think creating part time employment for benefits in State offices would be better than total collapse of the system.

[Humble Janitor]

The malevolent, vicious, devoid-of-empathy right-wing in this country would love such a move.

Just legalize marijuana and TAX THE HELL OUT OF IT!

[orthodoxymoron]

I have never smoked pot...but I think that it should be legalized and taxed to the max. It could be obtained from pharmacies with a doctor's prescription. Then end the Fed...and issue a silver-backed currency from a non-private bank. Welfare shouldn't be a state program. It should be funded by private individuals and organizations. The left is right to be concerned about poor people. The right is correct in their desire to shrink government down to the absolute minimum. We need to get past this right/left garbage. We the People have been divided and conquered. But the PTB have awakened a sleeping giant. I just hope that it's not too late.

[KathyT]

California Contemplates Ultimate Reform - NO Welfare

County welfare directors are "in shock" at the very idea of getting rid of CalWORKs, which has been widely viewed as one of the most successful social programs in the state's history, said Bruce Wagstaff, director of the Department of Human Assistance in Sacramento.



Sounds like a good idea to me. Cut out the job services part, do emergency aide only. People could be resourceful and look for jobs on their own.

Cut out a lot of the program for a year or two, wait until the government's budget is back on track, and then start it up again. It would work.

[pineal-pilot-in merkabah]

i happened to scroll down to the comment section of this article. shocking and disgusting fascsist ****. these sheep will be in shock when there life saving go pooof into thin air.. welfare would be good to have then i bet:zip:

[Dantheman62]

California nears financial "meltdown" as revs tumble


By Jim Christie Jim Christie – Wed Jun 10, 7:31 pm ET

SAN FRANCISCO (Reuters) – California's government risks a financial "meltdown" within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

Underscoring the severity of California's cash crisis, Controller John Chiang, who has previously warned the state's government risks running out of cash without a budget deal, said revenues in May fell by $1.14 billon, or 17.7 percent, from a year earlier.

Additionally, the revenues of the government of the most populous U.S. state fell short of estimates in Schwarzenegger's budget plan by $827 million, Chiang said.

He warned California's state government is speeding toward a financial disaster unless officials act urgently to balance its books.

"Without immediate solutions from the governor and legislature, we are less than 50 days away from a meltdown of state government," Chiang said in a statement.

California's revenues have been on a dramatic slide as a result of recession, rising unemployment and its lengthy housing downturn.

The state's revenues from personal income taxes tumbled by 39.3 percent in May from a year earlier while revenues from corporate taxes fell by 52.1 percent and revenues from sales taxes sagged by 7.6 percent, according to a report released by Chiang's office.

"A truly balanced budget is the only responsible way out of the worst cash crisis since the Great Depression," Chiang, a Democrat, said.

DUELING BUDGET CONCEPTS

Schwarzenegger, a Republican, has proposed filling the state's budget gap with deep spending cuts, borrowing from local governments and by scrapping some state programs, including its welfare program.

Democrats who control the legislature are crafting a rival budget plan that includes spending cuts and saves programs Schwarzenegger has proposed eliminating. They instead would use reserves estimated in his budget to narrow the budget gap.

State Senate President Pro Tem Darrell Steinberg said on Tuesday he wants a budget agreement by the end of this month.

California's new fiscal year begins on July 1. The sooner the state has a budget the better poised it will be to raise short-term cash to fund its operations by selling revenue anticipation notes, or RANs, on the municipal debt market.

If pressed, California could sell revenue anticipation warrants, or RAWs, an idea floated by Schwarzenegger when he unveiled his budget plan last month. But he quickly shelved it amid opposition from lawmakers.

"No one wants to issue RAWs for our cash-flow borrowing," said Tom Dresslar, a spokesman for State Treasurer Bill Lockyer. "Everyone would prefer to issue RANs for the obvious reason: It costs less."

Lockyer, a Democrat, supports a budget with the reserve Schwarzenegger has proposed. That would increase confidence among investors that California has cash to pay the $7 billion to $9 billion in short-term debt notes that Lockyer's office assumes the state will need to sell, Dresslar said.


http://news.yahoo.com/s/nm/20090610/pl_nm/us_economy_california_revenues

[peaceandlove]

I :wub2: Catherine, such a well rounded person!

Shock Doctrine California

Catherine and The Solari Report, June 14, 2009 at 9:06 pm

http://i44.tinypic.com/jfywet.jpg

I was speaking with an energetic healer this week and mentioned that the shock doctrine is about to roll out in the United States, starting with California. She said, “looks like we need Grizzly Bear magic,” referring to the grizzly bear in the California state flag.

On this week’s Solari Report, I will be reviewing what is happening in California and how citizens can take action to prepare themselves. The banks are now flush with cash and some of them are out from under government restrictions. A great deal of money has been amassed. Will they finance real estate developers on a shopping spree for state parks and facilities? Will a wider understanding of California’s situation put additional pressure on the Treasury bond market and the dollar globally?

In the meantime, best to be prepared for what several budget cycles of severe state and local budget cuts could mean - whether to local services, the economy, or the municipal bond markets. This month, Californians are most at risk. However, the U.S. state and local government budget crunch is a financial wave coming to your door. This wave will have a dramatic impact on most North Americans and could fundamentally alter the relationship of American states with the federal government. This wave will reach beyond North America, impacting the global economy in significant ways.

This week’s Solari Report will come to you from Tucson, Arizona where I will be speaking at the Institute of Noetic Sciences conference. I will cover other developments in our extended segment of Money and Markets, answer questions in Ask Catherine, and then address the California situation.

In our Let’s Go To the Movies segment, I will review Welcome to Mooseport, a comedy in which Gene Hackman, the retiring President of the United States, runs for Mayor in Mooseport, Maine and gets an education in the intimate issues of local governance and budgets.

If you are a subscriber to The Solari Report, you can post your questions at your private panel or feel free to also post them at this blog post. If you would like to learn more about The Solari Report and subscribe, click here.

SOURCE: http://solari.com/blog/?p=3209

[peaceandlove]

Shock Doctrine California, Part II

Catherine and The Solari Report, June 17, 2009 at 4:06 pm

“In a digital age, data about money is worth more than money.”
~ Nicholas Negroponte

LINKS TO FINANCIAL DATA IN CALIFORNIA

HERE: http://solari.com/blog/?p=3230

[BROOK]

Sounds like a good idea to me. Cut out the job services part, do emergency aide only. People could be resourceful and look for jobs on their own.

Cut out a lot of the program for a year or two, wait until the government's budget is back on track, and then start it up again. It would work.

What Jobs??? People I have worked with for over 20 years are being handed their hats....what jobs???
The unemployment rate is through the roof....ghost malls are popping up all over the country....
Are you delusional??? Do you really live in a Polly Anna world where tomorrow morning would be a good day to look for work....Look around you...there are no jobs

"Wait until the government's budget is back on track..." :jawdrop:

We're going to be waiting a very long time before the Government gets the budget back on track...are you serious??
Better go to your local Starbucks and get a triple vente latte....you need to wake up

[peaceandlove]

Shock Doctrine California, Part III

Catherine and The Solari Report, June 18, 2009 at 11:06 pm

View Shock Doctrine California, Parts I & II ABOVE

Fault Lines - California: Failed State - 11 June 09 - Part 1
VIDEO (14:10): YouTube - Fault Lines - California: Failed State - 11 June 09 - Part 1

Fault Lines - California: Failed State - 11 June 09 - Part 2
VIDEO (9:16): YouTube - Fault Lines - California: Failed State - 11 June 09 - Part 2

SOURCE: http://solari.com/blog/?p=3246

[BROOK]

Finally got to watch them...been at work. Those videos about sum it up:nono:

No jobs, no health care...it going to get intense..we just have to force the change in the right direction ....hoping it's possible

[peaceandlove]

Finally got to watch them...been at work. Those videos about sum it up:nono:

Blessings Brook,

It's been quite a ride, my thoughts are of you and wishing you continued employment.

PaL

June 21, 2009, 9:13 PM

California Bailout, Impossible or Inevitable?

By THE EDITORS

New York was on the brink of bankruptcy in 1975, when the investment banker Felix Rohatyn helped oversee the city’s rescue and recovery. But California’s current problems seem to be of a different order. “I certainly don’t recall a feeling of hopelessness here as I seem to sense there is about California’s present situation,” Mr. Rohatyn told Geraldine Baum of The Los Angeles Times in a recent interview.

The Obama administration has told California not to expect a federal bailout. So how should the state deal with its $24.3 billion shortfall? Can it save itself? Or is it likely that the taxpayers of Iowa and Utah will end up picking up the tab of the state that represents an eighth of the nation’s economy? We asked Ron Paul and others for their views on what has to happen next.

Ron Paul, Congressman and former presidential candidate Don’t Reward Exorbitance
Peter Schrag, former Sacramento Bee columnist Guess Whose Mess It Will Become?
Jean Ross, California Budget Project Why Washington Should Help
Louis H. Schimmel, Mackinac Center for Public Policy There’s Always Room to Cut Expenses

Don’t Reward Exorbitance

Ron Paul, a United States representative from Texas and a medical doctor, is the founder of Campaign for Liberty. He ran for president in 2008 and is the author of “The Revolution: A Manifesto” and “End the Fed.”

In 2003, California recalled Gov. Gray Davis because voters saw his administration as corrupt and devoted to big-government schemes, such as raising the dreaded car tax. New leadership promised to abolish that tax and to end unsustainable deficit spending.

Instead, leaders in Sacramento have signed high-deficit budgets and continually championed gigantic bond initiatives, paying for today by writing checks on behalf of future generations. There have been major spending increases in education, transportation, law-enforcement, infrastructure, and social programs. The budget has gone from about $100 billion to $145 billion in five years. Despite multiple tax increases, the deficit has persisted at an unmanageable size.

If you live beyond your means, you’ll one day have to live beneath your means, as our soaring national debt and widespread state budget troubles illustrate.

Continues: http://roomfordebate.blogs.nytimes.com/2009/06/21/california-bailout-reckless-or-inevitable/



SOURCE and COMMENTS: http://www.campaignforliberty.com/blog.php?view=20531

Ron Paul: Don't Bail Out California!

Posted by Anthony Gregory on 06/23/09 5:41 PM

It would encourage the state's profligacy and the federal government can't afford it, says Ron Paul on the New York Times website. (SEE ABOVE ARTICLE) But there are measures to be taken on both levels of government that make much more sense.

[peaceandlove]

Shock Doctrine California, Part IV

Catherine and News & Commentary, June 24, 2009 at 2:06 pm

California State Budget Crisis Not Caused by the Recession

by Peter Phillips

The budget crisis in California has been artificially created by cutting taxes on the wealthiest people and corporations. The current “crisis” is a shock and awe process designed to undermine wages and unions in the state and force labor concessions to protect corporate profits.

According to the California Budget Project, tax cuts enacted in California since 1993 cost the state $11.3 billion dollars annually. Had the state continued taxing corporations and the wealthy at rates equal to those fifteen years ago we would not have a budget crisis today.

Continues: http://empirereport.org/reports/20090623-budget-crisis-not-caused-by-recession

SOURCE: http://solari.com/blog/?p=3291

[peaceandlove]

California set to issue IOUs as fiscal crisis weighs

Wed Jun 24, 2009 10:00pm ED

By Dan Whitcomb and Ciara Linnane

LOS ANGELES/NEW YORK (Reuters) - California's controller said on Wednesday that he would have to issue IOUs in a week if lawmakers can't quickly solve a $24 billion budget deficit, and the state's treasurer plans to tap a reserve fund to meet debt service costs.

The measures came as a budget crisis deepened in the most populous U.S. state and the gridlocked legislature failed to pass a proposed $11 billion in cuts.

"Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression," Controller John Chiang said in a statement announcing that he would be forced to use IOUs to pay the state's bills beginning on July 2.

"The state's $2.8 billion cash shortage in July grows to $6.5 billion in September and after that we see a double digit freefall," Chiang said. "Unfortunately, the state's inability to balance its checkbook will now mean short-changing taxpayers, local governments and small businesses."

Continues: http://www.reuters.com/article/topNews/idUSTRE55O07Q20090625

SOURCE: http://solari.com/blog/

[peaceandlove]

Martin Weiss Predicts California Muni Bond Default

Catherine and News & Commentary, June 29, 2009 at 10:06 pm
By Jon Birger

Known for his early warnings on Bear Stearns and Lehman Brothers, analyst Martin Weiss of Weiss Research is now sounding the alarm about state of California municipal bonds.

In a new report, Weiss has some rather blunt advice for California muni investors: “Sell all California paper now!” His reasoning? California is facing a $24 billion budget gap with no obvious way to close it.

Asked to put odds on California defaulting on its $59 billion in outstanding general obligation bonds, Weiss doesn’t hedge. “It’s unavoidable,” he tells Fortune.

Continues: http://money.cnn.com/2009/06/25/pf/california_bonds_trouble.fortune/index.htm

SOURCE: http://solari.com/blog/?p=3354

[peaceandlove]

California to begin printing $3.4 billion in IOUs to pay for its deficit. The politicians who created this deficit still are not willing to cut spending. CalHealthLine 2009 July 2

SOURCE: G. Edward Griffin's Site: http://www.realityzone.com/currentperiod.html

Thursday, July 02, 2009

California To Begin Issuing IOUs; Gov. Declares Fiscal Emergency

Today, California Controller John Chiang (D) is expected to begin printing 28,742 IOUs to cover $53.3 million in state payments, the Los Angeles Times reports.

The IOUs became necessary after lawmakers failed to reach a budget agreement before the start of the new fiscal year yesterday (Rothfeld/Goldmacher, Los Angeles Times, 7/2).

If legislators fail to pass a budget plan by the end of the month, Chiang is expected to issue almost $3.4 billion in IOUs to individuals, vendors, social service providers and others.

Certain obligations, such as state employee paychecks, cannot be paid with IOUs.

However, California can issue IOUs to cover most health and welfare programs, including facilities that receive funds from Medi-Cal, California's Medicaid program (Sweeney, San Diego Union-Tribune, 7/2).

Continues: http://www.californiahealthline.org/Articles/2009/7/2/California-To-Begin-Issuing-IOUs-Gov-Declares-Fiscal-Emergency.aspx

[peaceandlove]

California Shock Doctrine, Part V

Catherine, Financial Permaculture, Money & Markets and News & Commentary, July 2, 2009 at 4:07 pm

Thanks to Matt Taibbi’s wonderful article “The Great American Bubble Machine http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine ,” I was inspired to do some more bailout math.

It looks to me like Goldman Sachs won big on the bailout. They got a $13 billion windfall from the AIG bailout. They got a $10 billion bailout in TARP that they paid back when they were ready. They got to become a bank holding company so they can raise capital using the FDIC credit. Can you imagine how cheap your borrowing rates would be if you could offer your creditors a federal guarantee? So your credit card rate would be 2% instead of 36%.

OK, the Fed lent the big banks $8.7 trillion. However, it is secret where that went. So we will not even count how much Goldman got from that or how much they made lending that money back to the U.S. government to finance the deficits that are increasing daily, in no small part thanks to Goldman.

And we are not counting how much Goldman made on shorting the housing market or on the take down of Bear Stearns and Lehman. We bet it was a lot, though.

Now, it turns out relative to the 2008 period that Goldman paid out $4.7 billion of compensation, of which their CEO got $42.9 million. During the same period—are you ready—their total US tax bill was $14 million.

OK, so let’s compare this to a potential California bailout. California needs $24 billion to balance their budget. If the federal government gave California $13 billion and loan them $10 billion, like they did Goldman, California would have to make $1 billion in cuts. However, if California refinanced their debt with the federal credit, as Goldman has been authorized to do, that would sufficiently reduce California’s cost of borrowing, that they should then have no deficit at all.

California would not pay out $4.7 billion in bonuses. They would also not pay $14 million in taxes to the federal government. However, if California does experience a real shock doctrine budget balancing exercise, the result will be a spiral down in the economy, leading to significant cuts in tax revenues to both California and the federal government. So figure the savings for federal revenues could be substantial.

The advantage of letting California hit the wall, is that then Goldman, their partners and their syndicates can buy up lots of land and businesses for cheap. Meantime, Californians can be busy working to pay the taxes to fund the billions gifted to Goldman so they can buy California. Californians will also have to work harder to make up for their losses on their defaulted California municipal bonds.

Think of this as a neighborhood leveraged buyout — except this time it could be an entire state. Indeed, another year of this and it could be an entire country.

Ever wonder how much money could be made shorting the California municipal bond market? Surely, there is a derivatives play…

SOURCE: http://solari.com/blog/?p=3371

SEE California Shock Doctrine, Part (I), (II), (III) , (IV) above.

[peaceandlove]

Going Bankrupt: California to Issue IOUs|12min

Good Interview :thumb_yello:

VIDEO PAJAMAS TV: http://www.pjtv.com/video/Economy_and_Financial_Review/_Going_Bankrupt%3A_California_to_Issue_IOUs/2084/

[peaceandlove]

JULY 7, 2009

Big Banks Don't Want California's IOUs

By RYAN KNUTSON

A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.

Associated Press
Dorothy Cottrill of the state controller's office inspects IOUs last week.
The development is the latest twist in California's struggle to deal with the effects of the recession. After state leaders failed to agree on budget solutions last week, California began issuing IOUs -- or "individual registered warrants" -- to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July's end.

But now, if California continues to issue the IOUs, creditors will be forced to hold on to them until they mature on Oct. 2, or find other banks to honor them. When the IOUs mature, holders will be paid back directly by the state at an annual 3.75% interest rate. Some banks might also work with creditors to come up with an interim solution, such as extending them a line of credit, said Beth Mills, a California Bankers Association spokeswoman.

Meanwhile, on Monday morning, a budget meeting between Gov. Arnold Schwarzenegger and legislative leaders failed to produce a result. Amid the budget deadlock, Fitch Ratings on Monday dropped California's bond rating to BBB, down from A minus, the latest in a series of ratings downgrades for the state.

The group of banks included Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and J.P. Morgan Chase & Co., among others. The banks had previously committed to accepting state IOUs as payment. California plans to issue more than $3 billion of IOUs in July.

Ms. Mills of the CBA said some banks were concerned that there aren't processes in place to accept IOUs, and also worried about fraud issues. She noted that not all banks have set a July 10 deadline, and that dozens of credit unions in the state will keep accepting IOUs.

Wells Fargo's head of community banking, Lisa Stevens, said: "We're very disappointed, as are many Californians, that California has taken the unfortunate step of issuing IOUs in lieu of payments to some businesses and individuals."

State officials said they were disappointed by the banks' decision. Garin Casaleggio, a spokesman for Mr. Chiang, said: "We don't want anybody to suffer who can't redeem them when they need cash."

Write to Ryan Knutson at ryan.knutson@wsj.com

Wall Street Journal: http://online.wsj.com/article/SB124692354575702881.html

SOURCE for ARTICLE: http://solari.com/blog/



billy blog
... alternative economic thinking

California IOUs are not currency … but they could be!

I seem to be stuck in the US at the moment – blog-wise. I can assure you I escaped their shores at the weekend and am now freezing in Newcastle, NSW. But I still have reading left over from hanging around US book shops last week. One story that is very interesting at the moment is the plan by the Californian State Government to begin issuing IOUs (reserved warrants) because it has “run out of cash”. As far as I can work out the IOUs will not become a second currency (alongside the USD) but one simple extra announcement by the State would be enough to allow California to be sovereign in their IOUs. What do you suppose that extra complication might be?

First, consider the following graphs. The first shows the Californian and US unemployment rates since 1990 (monthly seasonally adjusted available from the BLS). The chart shows the sharp deterioration in the US and Californian labour markets since the onset of the current crisis. The official unemployment rate in California for May was 11.4 per cent while it stood at 9.4 per cent for the US as a whole.

Continues with Charts: http://bilbo.economicoutlook.net/blog/?p=3145

SOURCE for ARTICLE: http://solari.com/blog/

[peaceandlove]

SEC Destroys California

Friday, July 10. 2009
Posted by Karl Denninger

Well now they've gone and done it: Jul 9, 2009, 8:03 p.m. EST
California IOUs can be considered securities, SEC says
Agency guidance helps create a secondary market for IOUs, helping with prices
http://www.marketwatch.com/story/california-ious-can-be-considered-securities-sec

"The staff of the SEC has expressed its belief that California's recently issued IOUs are 'securities' under federal securities law. As such, holders of these IOUs and those who may purchase them are protected by the provisions of the federal securities laws that prohibit fraud in the purchase or sale of securities," the agency said.

That was a mistake.

Here's why.

If you performed work or were otherwise owed money by the State of California (e.g. you are owed a tax refund) you're owed money, not a bond.

What the SEC has just done is equivalent to declaring that you were not paid at all.

You did not agree to accept payment-in-kind, therefore, absent agreement you cannot be compelled to accept this bargain.

Therefore, if you are owed a tax refund, you still are.

If you invoiced the state, it remains outstanding.

I predict that the line in front of the courthouse is going to get very long, very fast, and furthermore, if you're a vendor to California, you better quit shipping - now - before you wind up taking a forced haircut.

3.75% is nowhere near a reasonable interest rate for an insolvent institution, nor are you likely to appreciate the discount if you try to sell these "securities" for immediate cash.

SOURCE: http://market-ticker.denninger.net/archives/1201-SEC-Destroys-California.html

[peaceandlove]

Trading of California IOUs catches regulators' eyes

Would-be buyers and sellers of the scrip hit EBay, Craigslist. Meanwhile, the state's bond rating is downgraded 'BBB,' a step closer to 'junk' status.

By W.J. Hennigan
July 7, 2009

An informal market is springing up online for the IOUs that cash-strapped California began issuing last week, attracting the attention of regulators and state officials.

Meanwhile, the state's bonds moved a step closer to "junk" status because of the budget mess that has prompted the state to pay tax refunds and other obligations with the vouchers.

Would-be buyers of the scrip, officially called registered warrants, have expressed their interest on Web marketplaces including Craigslist and EBay.

Michael Roberts of Los Angeles said he posted such an ad on Craigslist so he could collect the 3.75% annualized interest rate the state is paying on them until Oct. 2, when the government presumably will have ended its fiscal stalemate and will have the money to redeem the warrants.

Roberts said he was willing to pay the full face value for the IOUs, but other investors are offering to buy them only at a discount.

Continues: http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story



California in not such a Golden State

By Robert Shrimsley
Published: July 9 2009 03:00 | Last updated: July 9 2009 03:00

The scale of California's debt crisis - the state is having to issue IOUs as it grapples with a $26bn deficit - has raised some uncomfortable questions for the US.

Is California too big to fail? If so, might the federal government be forced to nationalise it? There are those who believe California should be allowed to fail as a warning to the others. Many ordinary voters are unhappy at bailing out wealthy Californians who enjoyed a luxury lifestyle of sun and sand while their state was sinking.

Source [Must subscribe to read full article.] http://www.ft.com/cms/s/b3e96720-6c20-11de-9320-00144feabdc0,Authorised=false.html?_i_location=htt p%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fb3e96720-6c20-11de-9320-00144feabdc0.html%3Fftcamp%3DLate_graphic2%2FNL%2F USJul2009%2FVanilla_calbgt%2F0%2F%26nclick_check%3 D1&_i_referer=&ftcamp=Late_graphic2/NL/USJul2009/Vanilla_calbgt/0/&nclick_check=1

[peaceandlove]

California poised to shut gates on 80% of the States great outdoors as parks struggle with budgets

Sunday 12 July 2009

It is hard to envisage a no-entry sign tagged to a towering redwood tree. But the recession – writ on an epic scale in California's proposal to close 220 state parks – is forcing the American public to confront the closure of the great outdoors.

Arnold Schwarzenegger, California's governor, is trying to make up a $26bn (£16bn) budget shortfall, and has suggested that California can no longer afford to run its parks.

Conservationists are meanwhile arguing that California cannot afford not to. And this week the federal government appeared to partly agree, with the National Parks Service threatening to seize some of the sites if Schwarzenegger goes ahead with the closures.

The proposed shutdown of the parks would affect 80% of California's nature reserves, historic sites and recreation areas, and restrict access to 30% of the state's coastline. Affected areas would stretch from the mountains of the Sierra Nevadas to the beaches and wetlands of Big Sur, and to the deserts of San Diego, where some of the last peninsular bighorn sheep roam.

California is not alone. The crisis has also exposed hitherto hidden casualties of the economic downturn, with states from Oregon to Illinois, and New York to Tennessee, struggling to stretch resources.

Continues: http://current.com/items/90404982_california-poised-to-shut-gates-on-80-of-the-states-great-outdoors-as-parks-struggle-with-budgets.htm

SOURCE: http://solari.com/blog/

[sleepingnomore]

shock doctrine california, part iv

catherine and news & commentary, june 24, 2009 at 2:06 pm

california state budget crisis not caused by the recession

by peter phillips

the budget crisis in california has been artificially created by cutting taxes on the wealthiest people and corporations. The current “crisis” is a shock and awe process designed to undermine wages and unions in the state and force labor concessions to protect corporate profits.

According to the california budget project, tax cuts enacted in california since 1993 cost the state $11.3 billion dollars annually. Had the state continued taxing corporations and the wealthy at rates equal to those fifteen years ago we would not have a budget crisis today.

Continues: http://empirereport.org/reports/20090623-budget-crisis-not-caused-by-recession



source: http://solari.com/blog/?p=3291


bingo!!!!!!!!!!!!!!!!!

[peaceandlove]

Budget mess makes California vulnerable to crippling credit downgrade, official warns

Treasurer Bill Lockyer says the state could find funding sources for crucial programs cut off if its credit rating is dropped to junk status. Lawmakers and the governor vow to keep negotiating.

By Evan Halper and Eric Bailey
2:50 PM PDT, July 16, 2009

Reporting from Sacramento -- State Treasurer Bill Lockyer warned today that state leaders' failure to reach a budget deal has put California at risk of a credit downgrade that would cut off access to funds needed for building schools, roads and other public works projects.

"With every passing day, the state's credit rating moves closer and closer to the junk pile," Lockyer said in a prepared statement. "If our credit rating sinks to junk status, the state will find the door to the infrastructure bond market locked shut."

Continues: http://www.latimes.com/news/local/la-me-california-budget17-2009jul17,0,4871614.story

SOURCE: http://www.gcnlive.com/

[peaceandlove]

California's Crisis Hits Its Prized Universities

By KEVIN O'LEARY / LOS ANGELES – Sat Jul 18, 3:30 pm ET

California's crisis continues while Gov. Arnold Schwarzenegger and legislative leaders inch slowly toward agreement on the deep cuts necessary to close California's massive $26 billion budget shortfall. Now, even as the state continues to pay its bills with IOUs, the University of California, the nation's leading public university, is being forced to cut its budget by $813 million - or 20%. It is highly unlikely that these cuts will be reduced by a budget agreement in Sacramento.

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