Saturday, June 27, 2009
It looks as though California will begin issuing IOUs next week to pay their bills. What happens next is anyone's guess as major banks have made no commitments to honor them.
US News and World Report compiled a list of things they believe most people don't know about the situation. Included below are the ones that were news to me:
3. Gov. Arnold Schwarzenegger's budget proposes slashing health and welfare spending by 26.5 percent and closing 80 percent of state parks.Actually, cuts to health care and state parks were known to me, but not the extent of the cuts which appear to be draconian, albeit probably necessary given the current predicament.
5. Democrats are seeking alternatives to major cuts, such as rescinding $1 billion in corporate tax breaks, enacting a 10 percent tax on oil pumped in California, and tapping into a $4.5 billion rainy-day fund.
7. California residents with incomes of more than $500,000 pay nearly 40 percent of the state's personal income tax revenue.
9. California has the highest research and development tax credit in the country, which will cost the state $1.2 billion in potential tax revenue this year.
Has there been any word on slashing any of the generous pensions and/or salary and benefit packages for state workers? That would be a good PR move.