I was in Califonia last week and got an ear full of the budget woes there. It boils down to this: the largest social welfare state in the country has bankrupted itself into oblivion. The over taxed business and high income earners have conducted a mass exodus of the state destroying their tax base. The state government will not agree to cut a single thing out of the budget as they spiral to the point of no return. The constituents of California have vetoed every social service reduction option given to them. The Californians have refused to help themselves and are now fiddling as the metaphorical Rome burns and the state becomes insolvent in 3 to 4 weeks.
From the WSJ: SACRAMENTO, Calif.—California Gov. Arnold Schwarzenegger and the state’s chief accountant Tuesday warned lawmakers that they have until June 15 to close the state’s crippling budget deficit.
“California’s day of reckoning is here,” Mr. Schwarzenegger said in an unusual address before a joint legislative session. “We have no time to waste.”
The state faces a $24 billion deficit in a $92 billion general-fund budget, a result of plummeting tax revenue during a recession. This new shortfall is in addition to the $42 billion gap that lawmakers closed in February through steep cuts and new taxes. Lawmakers must pass a balanced budget by June 15 for the state to obtain its annual loans from Wall Street.
Before our Congress gets all ‘spring-butt’ to volunteer our tax dollars to bail out California’s irresponsibility I think we should kick the old idea can around. What do you think we should do about California’s economic collapse?
I wonder if Snake Plissken is up for another round…………