Deficit Rising - Now 20 Billion

It is being reported that the California budget deficit could reach 20 billion. Originally the deficit was thought to be around 15 billion. State house members are now wondering whether Governor Schwarzenegger has enlarged the deficit to create pull for his budget measures - Liar (Liad). The Chronicle is currently the only source reporting these new numbers. Regardless of who is right in the political sense, this situation just got blown out of the water if this number is accurate.

Chron

National Stimulus Day

What are you doing with your stimulus? Please take the survey to the left ->>

What am I doing with my stimulus? I am paying 3 quarters of my rent with it. Not surprising to most San Franciscans, $600 dollars will only cover a 3rd of my $900 rent.

I wonder if Blade a.k.a. (Wesley Snipes) is getting a stimulus this year, probably not.

When talking to my bredren (friends), they all agreed that they were going to do the same. Paying bills with both the rebate checks and the $600-800 tax refund from the Man (Babylon Sucks). The total of those checks will definitely give us a much-needed break going into summer.

The legislature in Sacramento is going into debate over new state budget cuts that include deductions in law enforcement and the release of over 22,000 inmates.

The states known issues of prison overcrowding is really coming back to haunt Governor Schwarzennegger. Chico county assembly member Rick Keene points out that, "Letting thousands of criminals out on our streets might save money on one end, but would cost much more to our local law enforcement efforts"

The governor's budget has about three weeks until its supposed due date, many more issues are going to become hot topics for both the legislature and the public.

Chico

Others Falling Behind

NCSL - National Conference of State Legislatures

Has reported these findings today of state budgets and issues.

NCSL Reports

-More than half the 16 states reporting deficits this year have cut spending, including $1 billion by Florida lawmakers last year and across-the-board cuts in Nevada. At least eight states are debating raising taxes or fees, including a proposed $1-per-pack cigarette tax increase in Massachusetts to raise $175 million.

-Twelve states, including Georgia, Idaho and Illinois, reported that personal income tax collections were failing to meet estimates, and in eight of these, collections were even below a reduced forecast.

-Many states, including Alabama, Arizona, Massachusetts, Minnesota, Nevada and Wisconsin, plan to tap their rainy day funds, which contain money set aside for fiscal emergencies. Nevada may use its entire rainy day balance.

Stateline.org

Budget Shortfall

More bad news came from the Capital house this week. One billion dollars will soon be added on to the 08-09 budget deficits. The states steady revenue has continued to worsen as housing foreclosures and financial hard times continue to plague cities around the state.

Lyndon LaRouche of Executive Intelligence Review wrote in an article today called "As California Crumbles, Arnie Pushes Green Fascism"

-While Schwarzenegger is popping up everywhere, promoting so-called Green solutions — such as at a Frito-Lay plant Tuesday, to activate the largest solar thermal system in the country, and on "The Tonight Show" with Jay Leno Thursday, as part of NBC's "environmental week" — the state of California continues its collapse into a complete breakdown crisis. Some features of this breakdown include

Many people are in complete denial of the facts that this state is battling. Special interest is going to take advantage of this States weekend position in the 2008 elections. I am a firm believer of Voting NO on ever proposition in which I know I am not alone. I have spoken to many democrats and republicans who vote NO every time. The November elections are going to be a new test for us. Many new and old special interest groups including casinos will try to sweeten the deals for the fifth largest economy in the world.

The Broke State....

I believe that the issues Vallejo and other California cities are struggling with are not being brought to the for-front of a larger problem in California. Current day issues of oil prices, inflation, devalued dollar, foreclosures, and a slowing economy continue to be talking points. Vallejo and cities alike continue to have growing foreclosure rates, which in turn will continue to drop the property values in those areas.

The tipping point for Vallejo was last February in which fire and police union contracts could not be signed-off without declaring themselves bankrupt. Similar issues have recently risen in West Contra Costa County where in the next ten years 4,000 city employees are going to retire. The most concerning factor is that property values continue to stagnate while sales tax receipts have fallen over 50% for the year.

Smaller to medium size cities need to be more prepared to take on such challenges. It is always easier to place blame then to help find a solution to the problem. How do we prepare and help these cities fight these problems when the State continues to make more budget cuts?

star

The Great State of Broke “Babylon”

Watching the great state of California continue to struggle through these hard fiscal times is very daunting. Where to begin… I always like to start small and go big, which would belong to the 1852 Capital of California known as Vallejo. Vallejo is currently the only city in history that has the risk of going bankrupt. The city as every other local government in California has to spend almost half of its budget on salaries, utilities, police, fire and everything else a city needs to run. The chronicle states that this issue is not just to Vallejo but also many other California cities that are on the brink of collapse. If this was the banking industry, we would just write-down every salary and pension and ask our neighboring city to buy us out with the help of the federal government. The current situation in Vallejo is dire; it is trying to keep the police and fire on so the city can float for another 3 months.

To be continued….

The age of BumboClots

BumboClot - Jamacian Slang - An expression of annoyance, disgust, or dismay.
"That guy is a bumboclot"