Wikinvest Wire

Pink slips being readied in California

Tuesday, February 17, 2009

The Associated Press reports that pink slips are now being readied for some 20,000 state workers in California after another late-night session failed to produce a budget bill.

Legislators could not find the one last Republican needed to join the other two who have already pledged their votes for a budget that includes $15.1 billion in spending cuts, $14.4 billion in tax increases, and $11.4 billion in new borrowing.

The huge tax increases continue to be the major stumbling block for the minority party.

Without a budget, governor Arnold Schwarzenegger is making good on his promise to cut payrolls by roughly 10 percent in corrections, health and human services, and other areas.

On the local news last night, one of the Republicans whose vote was being sought commented that what he wanted for his 'yes' vote was a bill that required salary to state legislators to cease on the first day that a budget deadline comes and goes without a budget bill having been passed, not to resume until a bill is passed.

That idea was actually mentioned here just yesterday in California Dreamin' and makes a good deal of sense, given what has happened over the last four months.

After a frustrating holiday weekend that failed to yield the one vote needed to end California's budget stalemate, the state is poised to begin layoff proceedings Tuesday for 20,000 government workers.

In addition to the layoffs, the state also plans to halt all remaining public works projects, potentially putting thousands of construction workers out of jobs.
...
Despite the warnings of impending fiscal calamity, most rank-and-file Republicans have refused to agree to higher taxes. Republican lawmakers blamed Democrats for years of overspending.

"You're not going to go back to the people's pocketbooks to fuel that spending," said state Sen. Dennis Hollingsworth, R-Temecula.

During a lively floor session Monday night, state Sen. George Runner, R-Lancaster, defended his colleagues' stance against tax hikes and said his constituents were pleading with him to vote no on the budget proposal.

He accused Democrats, who hold majorities in both houses, of using the recession to drive an agenda of tax increases.
Here's a clip from CBS News:

12 comments:

Anonymous said...

Wow this says it all,

On the local news last night, one of the Republicans whose vote was being sought commented that what he wanted for his 'yes' vote was a bill that required salary to state legislators to cease on the first day that a budget deadline comes and goes without a budget bill having been passed, not to resume until a bill is passed.

Dems wont tax a pay cut but are willing to tax the heck out of everybody, unbelievable

donna said...

The entire Republican portion of our so-called legislature needs to die in a fire.

Assholes.

donna said...

But I do agree the jerks shouldn't be paid -- at all. Ever.

Anonymous said...

During last year's fires, Orange County (which is the most Republican county in California) had to beg for help from neighboring counties, largely because it had refused to tax itself to pay for fire fighters. You'd think they would have learned the value of taxation, but no...

Now Republican leaders are playing obstructionist and preventing California from getting a budget it desperately needs: In short, for political reasons, Republicans are bankrupting the world's 8th largest economy during what will probably become the worst depression ever (certainly the worst if these Republicans have anything to say about it).

They need to be stopped!

Anonymous said...

Yay for the GOP!! Fiscal restraint!!

Anonymous said...

Hi Anon 9:36am

"You'd think they would have learned the value of taxation, but no..."

So you are saying is that by raising taxes OCers can count on our government to be responsible and save $$$ for when there are emergencies? Cool.

Anonymous said...

We certainly are not going to "save $$$ for when there are emergencies" so long as Californians keep electing Republican governors who insist on "giving back" the rainy-day funds (which is exactly what Arnold did).

I can't see how anyone believes it is imprudent to tax yourself so you have a fire department during the summer when there are wild fires that will destroy your home. That seems like a really prudent thing to do. Individual homeowners are not going to stop a wild fire -- they need their government to hire, on their behalf, airplanes with fire retardant and lots of fire fighters with pick axes.

Anonymous said...

But if Arnold had not given back the money who is to say they wouldn't have spent it anyway? I strongly suspect so ...

Anonymous said...

Absolutely he would have spent it: It was "rainy day" money that he could have spent on putting out all those fires. Instead, he gave it to people who spent it redecorating homes that are now ashes -- because they refused to tax themselves for fire protection.

Mathlete said...

A good start would be to close 50% of the public colleges and universities in California and remove state aid to any majors outside of the hard sciences. Fire 30% of the state workers, and cut the remaining workers' salaries, including teachers, by 12 to 20 percent. (For teacher's, an option would be to take teacher competency tests, as this would result in a workforce reduction of 50%. My guess is the union would take the cuts.) Close bilingual classrooms and remove all illegals from the school and medical system. Cut Medicare and Medicaid by 30%, roughly the amount of fraud wasted every year. Convert all existing pension funds into 401ks and switch to a defined contribution plan, which does not exceed the benefits of the average California worker. Finally, cut every single line-item in the state and local budgets by a minimum of 15%.

dearieme said...

If governments restricted themselves to competent spending on the "nightwatchman state" - firefighters and such - nobody much would oppose the light taxes necessary to fund them. The problem arises from the swill of negligent, corrupt, extravagant spending.

Anonymous said...

Mathlete: The world you are proposing is medieval -- think Dark Ages-II.

You might as well have told the masses: Go eat cake. Of course, you do realize what follows is the revolution, don't you?

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