Is California going bankrupt?
Published: 25 June, 2009, 20:42
Edited: 19 March, 2010, 11:01
TAGS: Crisis Chronicle, Budget, USA, Economy
California, America’s most populous state, has a projected $24.3 billion budget deficit for the coming year, and may start issuing IOUs starting next week.
California’s fiscal controller, John Chiang, has called the state’s spending plan “massively unbalanced,” adding that the Golden State is suffering from a cash shortfall not seen since the Great Depression.
Despite the deepening budget crisis, the California Legislature on Wednesday failed to pass a proposed $11 billion in cuts.
The current problems are linked to a combination of a steep decline in revenue from income taxes, sagging retail activity and the drawn-out downturn in housing. The unemployment rate soared to 11.5% in May, a jump from 6.8% a year earlier.
State authorities are planning drastic cuts on healthcare and education. Among other plans is the closure of 80% of the state’s parks, which will not only endanger the environment but also cost thousands of people their jobs.
25.06.2009, 05:50
15 comments
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26.06.2009, 10:48
6 comments
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problem is: Caloforina's government and people's philosophy of socialism; tax the reich to feed the poor (mexican border jumpers) paying thier civil sevants, too much, too many regulations, fees ,etc upon buisinesses....Most of conservative america is laughing at California , now. A certain Russian sociologist has predicted USA will dissolve the Union and break up into different economic political city-states or regions. All states with leftist, marxist, porgressive self styled legislations are now failing; fiscally conservative Texas is flush with extra cash, and will soon tell the fascist Barry Insane O' Bummer thieves in Washington that it is forming it's own republic. They should let the liberals in the northeast, freeze to death! The country would be better off. I plan to leave New hampshire for Texas if i find work there.
Where were all these crying babies when the incompetent office holders were being elected to high office? You people got what you voted for, so stop the whinning and vote the creeps out. otherwise, just enjoy your new poverty. You re not the only people impoverished by falling for the slick news media scams that got empty talking heads elected. Enjoy your new status, it may be the best time of your life, because some miserable times are in the cards. You can keep drinking the "kool aid" and believing all the propaganda being fed to you, or you can start to think for yourself. The future is up to you, the voters.
A lot of that gold in Fort Knox was taken from California and belongs to California and should be given back. It was California's in the first place. YOU KNOW, MINER 49'er, as in 1849 and the California gold rush. That gold in Fort Knox, does nothing but sit there anyway. For how long has it been just sitting there? What does it do but just collect dust? What are the plans for the use of said gold? Maybe there will be PGFA just as the banks do PFA banking all the time any how. What good is all that gold any way if the FR just makes (or legally steals, (i.e. inflation)) all it wants. What's going to happen to the penny, then nickel, then dime, then quarter, (the old fifty cent piece you hardly see), then the dollar then what's next??? (Free to use)