California Faces $42 Billion Shortfall

CBS Evening News: Largest U.S. State Could Be Out Of Cash By February

(CBS)  The shine is off the Golden State. The bruising national recession, plus a political stalemate in Sacramento have left California with a whopping $42 billion budget shortfall.

Gov. Arnold Schwarzenegger has called it a fiscal emergency.

"Our economy is crying out for relief," he said. "We are running out of cash by February."

The country's biggest state soon won't have money to pay its bills - things like highway maintenance - or fund its schools or other critical services.

Californians expecting a state tax refund have been told they might get IOUs instead. State workers may be forced on unpaid furloughs, effectively cutting their pay by 10 percent.

"Ten percent is somebody's car payment, or their gas bill," said state employee Crystal Johnson. "Please stop picking on us. We do your work and we're good employees."

California may be facing the worst budget crisis, but it's not alone. Thirty-seven other states face gaping budget shortfalls this year. In Iowa, schools are taking a hit. In Kentucky, library hours have been cut. The governor of Minnesota says cuts in state services are "inevitable" to close a $5 billion state deficit.

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See a map showing the extent of budget shortfalls in every U.S. state.

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All 50 states are required to balance their budgets, but California is one of only three requiring a two-thirds majority in the legislature to approve any tax increase. Republicans in the legislature have sworn not to raise taxes. Democrats say the problem is too big to solve with budget cuts alone.

It all should sound familiar to Schwarzenegger. He swept into office on a wave of voter discontent when his predecessor, democrat Gray Davis, failed to pass a budget. Schwarzenegger promised to fix the political impasse and cut taxes, especially the much-loathed vehicle tax, which he bid "Hasta la vista, baby," at a jubilant public ceremony.

Five years later, the deficit has mushroomed and Schwarzenegger now says new taxes are necessary - maybe even that despised car tax.

"This is a critical time in California's history," Schwarzenegger said recently. And on that, all sides can agree.

[rudy6543]

You can be sure that this jerk, Schwarzenegger, is making sure his income and pet projects remain untouched. He just wants to end the education system and look tough.

[rudy6543]

Schwarzenegger promised to fix the political impasse and cut taxes, especially the much-loathed vehicle tax, which he bid "Hasta la vista, baby," at a jubilant public ceremony.

Five years later, the deficit has mushroomed and Schwarzenegger now says new taxes are necessary - maybe even that despised car tax.

"This is a critical time in California''s history," Schwarzenegger said recently. And on that, all sides can agree.

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To think that California actually got rid of someone who knew his job for this pervert.

[neonink]

You don''t just fall into 42 BILLION deficit by accident.

These are choices made by the ignorant.

[prelgovisk]

Execute all Death Row inmates and save some money.

[harp1963]

The Republicans haven''t figured out that moving our manufacturing base to countries that have slave labor has destroyed America''s tax base and it''s consumer base. No one makes enough to afford the products their slave labor in 3rd world countries are producing. The whole game of life operates better when the leadership encourages sharing, not paying a small handful of people billions to eliminate all the middle class jobs. Trickle down economics doesn''t work because of greed and never will because of greed.

[jerr11]

What''s $42 Billion when we''re spending $12 billion a month in Iraq in Bush''s War?

Stop the war and we''ll have plenty cash to go around.

[jd2408]

harp1963 is exactly right. The middle class in this country saw this coming long ago. Corporate America bought our Congress and they sold out the middle class in this country.

The California problem is also because Corporate America and many rich in California wanted slave labor and fought hard to hold on to illegal labor. They got their cheap labor again at the expense of the middle class. New York and their rich are facing the same problems. They now have their slave labor right here at home and have to support them with very little middle class left in this country to hold them up.

Try to sugar coat it all you want this is exactly what has happened to this country. GREED

From the Sub-Prime loans, the fall with crooks like Maddoff, our government, illegals, and outsourcing jobs. It all comes down to GREED.

[perk235]

The Democrats have to be the adults and pay the bills left from Republican tax cuts and huge deficits.

[stevex47]

"Five years later, the deficit has mushroomed and Schwarzenegger now says new taxes are necessary - maybe even that despised car tax."

A republican failing economically?

Well gee this is very surprising..(eyes rolling)

[platteman]

Hike their taxes by 100 percent, cut all the programs that give away money to everyone, cut the salaries of all govt employees by 35 percent, let the roads fall apart, raise gas taxes to 10 dollars a gallon there, enforce the laws, eliminate sanctuary cities, cut all the scollarships to illegal alians.

I am sure that the messiah will make sure CA gets a bailout.

[dxgmk]

way to go, this Bozo makes Bush look like a genius!

[louiville2]

Another Blue state will have it''s hand out to red states for a bailout.

[omega40]

Between 2000 and 2003 off shoring technical jobs took 21 billion dollars out of California''s economy. Much of that money went to pay a variety of taxes besides circulating around and helping small business as much as large. The shareholders and the CEOs couldn''t stand that someone was making a decent living when they could make even more for themselves. They should pay for the shortfall, the middle class is broke.

[kjs3964]

Hello dumb *****, If I have to balance my checking account each month, what the hell are you doing in california? just spend it, our taxes will bail you out with like we are with everyone just like you. Better starting understanding, If the little guy has no money, who will buy it, Hello????

[omega40]

Another Blue state will have it''''s hand out to red states for a bailout.

Posted by louiville2

Bwahahahahaha! What red economic powerhouse will step up to that plate, Kentucky?

[kjs3964]

Hello dumb *****, If I have to balance my checking account each month, what the hell are you doing in california? just spend it, our taxes will bail you out with like we are with everyone just like you. Better starting understanding, If the little guy has no money, who will buy it, Hello????

[marcosis78]

Way to balance that budget Terminator!

[louiville2]

Another loony left state always spending beyond their means.

[louiville2]

Bwahahahahaha! What red economic powerhouse will step up to that plate, Kentucky?

Posted by omega40 at 10:07 PM

Ah another dimwit Californian. BTW I''m not from Louisville AHAHHAHAH

[omega40]

Another thought, California''s largest cash crop is marijuana. Perhaps they should tell the feds to go fvck themselves and start collecting on some of that action.

[lili5044]

I don''t suppose allowing all the ILLEGALS to use your schools, hospitals, jails, prisions, and all the other resources American citizens pay taxes for has a *** thing to do with Californias problems. Nope because Arnold didn''t allow that to happen under his watch. Geeeeesh!!!(:

[omega40]

I don''''t suppose allowing all the ILLEGALS to use your schools, hospitals, jails, prisions, and all the other resources American citizens pay taxes for has a *** thing to do with Californias problems. Nope because Arnold didn''''t allow that to happen under his watch. Geeeeesh!!!(:

Posted by lili5044


You need to do some research, it is not CA encouraging illegal immigration it is the federal government. For instance, the border fence has a managers amendment (sponsored by Arlen Specter (R)) that states the boarder fence cannot be completed unless Mexico''s government agrees. Now..how soon do you think the Mexican government is going to agree to let it be completed so that Mexico''s citizens are locked out of US jobs and their income earned can''t be sent back to prop up Mexico''s dismal economy?

[omega40]

Bwahahahahaha! What red economic powerhouse will step up to that plate, Kentucky?

Posted by omega40 at 10:07 PM

Ah another dimwit Californian. BTW I''''m not from Louisville AHAHHAHAH

Posted by louiville2 a


2007 GDP rank for Kentucky was 41, this was followed by Maine, Idaho, Alabama, Oklahoma, SC, Montana, Arkansas, W Virginia and Mississippi.

[louiville2]

How to know if you have California(n) as a neighbor.

They have phones on every fence post.

They have signs in the front yard saying Illegal aliens must go but you hear them in the backyard telling the help in Spanish %u201CGet that weed.

They invite you over and search you for guns-no, illegal aliens-no, drugs-hel-l no, explosives-no, terrorists-no. They search you for fruit flies.

You put a pink flamingo in your yard and they copy it and then claim that it was them that started the trend.

They put gay pride bumper stickers on their cars but burn and defame churches.

You catch them dumping trash in your yard and when you ask them why they point to the sky and yell something about global warming as they run to their house.

You drive by and see their house is on fire and find that the dog put a cap in the but* of the cat and they started rioting setting the house on fire.

I could go on but you get the idea a bunch of pompous narcissistic big mouths who think more of themselves. I feel sorry for the little guy but they all need to learn to live within their means.

[ludvig1-2009]

I''m a retired engineer whom the doc told to get exercise or get diabetes. After the local cops took my picture for riding a bicycle down the street, put a decoy car in my walking path with the drivers side door wide open blocking the sidewalk, spied on me when I walked laps around the park, and dropped a bag labeled "Medical" perfectly centered on my driveway while hiding a block down the street where the street starts to bend, when in covering 40,000,000 feet walking and biking the last 2 years and never seeing anything in the street calling out drugs, and having the townsfolk vote for a 0.5% sales tax to put more idiot cops on the street, I quit shopping in my town. They are now $8 million dollars over budget and I can''t wait to see the town go bankrupt. I''m also a 13 gallon and one pint blood donor.

[louiville2]

2007 GDP rank for Kentucky was 41, this was followed by Maine, Idaho, Alabama, Oklahoma, SC, Montana, Arkansas, W Virginia and Mississippi.

Posted by omega40 at 10:33 PM

I already told you I''m not from there (KY), but since you brought it up all the more reason red states should not be burdened with California''s problems. In fact maybe we should implement the "spread the wealth" idea of Obama and immediately take away all DOD, DOE, etc... away from California and give the work to more deserving poorer states. I like that Idea. Hundreds of billions of dollars going to say, Mississippi, or Alabama or Georgia.

[lordsuntzu]

kick the illegals out..that would save us tons of money

[louiville2]

louiville2


lets add some pink lip gloss to your post, California is the home of Fruits and nutz.... sums it up nicely


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Posted by ms1-1-1 at 10:48 PM

It''s really hard to feel sorry for California, kind of like feeling sorry for an investment banker, lawyer, stock broker...... You just know they brought it on themselves.

[stevex47]

Ha, people blaming the illegals for cslifornia''s failures.

Um, the only ones to blame for california''s failures
are republicans.

Um, the only ones to blame for America''s failures are republicans.

Obvious. They followed limbaugh like manson. They followed boosh like hitler.

[louiville2]

I was stationed in Port Hueneme, CA in the early 70''s where Californians treated us like dirt even though they were making billions off of us. I left in 1974 and never looked back. As far as I was concerned the best view of California was in the rear view mirror.

In contrast I was then sent to Gulfport Miss. with a 180 deg difference in attitude towards servicemen. I miss Mississippi.

[lili5044]

California looks sooooooo much like Mexico because well,it is!! You can smear lipstick all over it and it''s still a cess pool of ILLEGALS that have been welcomed over there by the Governator. Sucking up every single payed for by the tax payer service they can get those lips around. Don''t worry Arnold we''ll bail you out. You''ll still have a job. Quit sniveling. rolling my eyes and wiping my tears....

[lordsuntzu]

Ha, people blaming the illegals for cslifornia''''s failures.

Um, the only ones to blame for california''''s failures
are republicans.

Um, the only ones to blame for America''''s failures are republicans.

Obvious. They followed limbaugh like manson. They followed boosh like hitler.

Posted by stevex47 at 11:15 PM : Jan 03, 2009
+ report abuse

***********

you must be one of those dumbfu(k liberals..

did not say illegals caused the problem..YOU STUPID BLEEDING HEART LIBERALS CAUSED IT..

what i said is to save us tons of money..we need to kick these illegals out..and a LOT OF OTHER LIBERAL ORPHANS may i add

[stinginrich]

"Kal-EE-Forn-yuh iz broke"...."I have no idea what to do"..... - Love, Arnold

[lopezf11]

Ha, people blaming the illegals for cslifornia''''s failures.

Um, the only ones to blame for california''''s failures
are republicans.

Um, the only ones to blame for America''''s failures are republicans.

Obvious. They followed limbaugh like manson. They followed boosh like hitler.

Posted by stevex47

California''s two Senators are Democrats. The stage legislature is run by Democrats. Most of the California congressional representatives are Democrats. California includes Santa Monica, San Francisco and Berkely. You really don''t know ***** about CA *****

[louiville2]

per chance do you know where Ford Ord California United States Army is?

that''''s is where I was stationed... it was dubbed quote end quote ''''THE DIVORCE POST'''' especially after math of Vietnam...

.... I agree with your post period dead on the mark ! !

Posted by ms1-1-1 at 11:27 PM

Heard of it but never there.

During Vietnam it was like that, guy''s would ship out for a tour and their wives would down at the bars the same night. I suspect it''s still the same today maybe worse.

[lopezf11]

per chance do you know where Ford Ord California United States Army is?

that''''''''s is where I was stationed... it was dubbed quote end quote ''''''''THE DIVORCE POST'''''''' especially after math of Vietnam...

.... I agree with your post period dead on the mark ! !

Posted by ms1-1-1 at 11:27 PM

Fort Ord is used by reservist and is mostly unsued.

[louiville2]

Now I remember it''s one of those bases closed that Californian''s were crying about closing snif snif. My buddies were all hoping they would close ALL California''s bases.

"Fort Ord was being considered as ''Property In Excess.'' In 1989 the 7th IDL was deployed to Panama to restore order and captured dictator Manuel Noriega. In 1990 the 7th IDL joined the coalition troops sent to the middle east to defeat Iraq during Desert Storm. One of their last deployments was to the 1992 Los Angeles riots. Two years later on 15 Jun 1994. The 7th Infantry Division Light was deactivated. In September of 1994 Fort Ord closed it''s gates and became part of US military history."

[lopezf11]

Ford Ord is Monterey California... it was on BRAC per Leon Edward Panetta recommendations, he is the President of the University in Monterey CA so now you see the string of corruption begin to unfold...

Posted by ms1-1-1

For Ord is in souther Monterey County, south of near
northern San Luis Obispo County. You know it''s not exactly walking distance, if you know CA.

[louiville2]

California includes Santa Monica, San Francisco and Berkely. You really don''''t know ***** about CA *****

Posted by lopezf11 at 11:35 PM

Maybe they can get those really smart (lazy good for nothings) at Berkley to solve their problem. Oh that''s right they only know how to spend money not make it.

[louiville2]

ouiville2


HAPPY NEW YEAR 2009

take care best wishes ... *v*

Posted by ms1-1-1 at 11:54 PM

You too and good luck.

[rudy6543]

Posted by louiville2 at 11:58 PM

Typical neocon scumm who has no problem spending other people''s money and then pointing fingers.

[louiville2]

Typical neocon scumm who has no problem spending other people''''s money and then pointing fingers.


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Posted by rudy6543 at 12:05 AM

That the best you can do? I live in a state with a balanced budget and you?

[rudy6543]

California''''s two Senators are Democrats. The stage legislature is run by Democrats. Most of the California congressional representatives are Democrats. California includes Santa Monica, San Francisco and Berkely. You really don''''t know ***** about CA *****


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Posted by lopezf11 at 11:35 PM

Yeah, and nothing can get done because of a destructive neocon minority which includes this pervert governor.

[rudy6543]

That the best you can do? I live in a state with a balanced budget and you?


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Posted by louiville2 at 12:08 AM

In case you haven''t noticed because of that neocon radio up your rear end, the whole nation is suffering because of neocons and their updown spending for the rich. Want to talk about deficit spending? Go kiss Bush in the process.

[louiville2]

Yeah, and nothing can get done because of a destructive neocon minority which includes this pervert governor.


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Posted by rudy6543 at 12:13 AM

Ummmmm neocon is a badge of honor where I''m from, so are you trying to slam epople or praise them you Neo-Marxist Fascist.

[rudy6543]

Ummmmm neocon is a badge of honor where I''''m from, so are you trying to slam epople or praise them you Neo-Marxist Fascist.


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Posted by louiville2 at 12:16 AM

No doubt that KKK membership doesn''t hurt either.

[rudy6543]

Between 2000 and 2003 off shoring technical jobs took 21 billion dollars out of California''''s economy. Much of that money went to pay a variety of taxes besides circulating around and helping small business as much as large. The shareholders and the CEOs couldn''''t stand that someone was making a decent living when they could make even more for themselves. They should pay for the shortfall, the middle class is broke.


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Posted by omega40 at 10:05 PM

Well said.

[louiville2]

In case you haven''''t noticed because of that neocon radio up your rear end, the whole nation is suffering because of neocons and their updown spending for the rich. Want to talk about deficit spending? Go kiss Bush in the process.


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Posted by rudy6543 at 12:16 AM :

Another dimwit with brain damage and that leftist chip in his brain. Can only say neocon and blame bush.

BTW Democrats only sent Bush 10 bills/8years that he vetoed an all time low. That and they voted for the war.

[rudy6543]

Another dimwit with brain damage Posted by louiville2 at 12:21 AM

Says the man that gradiated from third grade with tobacco stains from snuff.

[louiville2]

No doubt that KKK membership doesn''''t hurt either.


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Posted by rudy6543 at 12:17 AM

Look a racist bigot neo-marxist fascist, even more rare. You must be from that are of tolerence berkley bird sanctuary.