07-22-2009, 05:20 PM
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#11 (permalink)
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The Reforms
Location: Rarely, if ever, here or there, but always in transition
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California will go bankrupt
Quote:
Originally Posted by flstf
I saw Arnold on the news today, he said that at the rate things are going California may have to bail out the federal government.
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Is California going bankrupt?
25 June, 2009, 20:42
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.
More of the same sad story:
http://www.npr.org/templates/story/s...ryId=106852483
http://www.creditwritedowns.com/2009...-bankrupt.html
http://www.mahalo.com/california-iou
http://whiskeyandgunpowder.com/is-ca...oing-bankrupt/
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As human beings, our greatness lies not so much in being able to remake the world (that is the myth of the Atomic Age) as in being able to remake ourselves. —Mohandas K. Gandhi
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