Cash-Strapped States Face Tough Choices

California To Use IOU's; One of 18 States Struggling With Deficits

(CBS)  Across the country Americans are getting a big dose of budget reality. In a busy San Francisco medical clinic financed largely by taxes, the start of the state government's fiscal year today is filled with uncertainty as CBS News correspondent John Blackstone reports.

Dr. Katrina Liu knows her low income patients are likely to suffer as California runs out of money to pay its bills.

"These are families born to the working poor. Who either cannot afford private insurance or it's not offered to them at the workplace," says Liu.

There are worries that drastic cuts expected in the state budget are likely to take away medical insurance for thousands of low income families. And that's just the start of the pain.

State workers marched on the capital today as many were ordered to take three days off each month without pay.

As early as tomorrow California will start paying bills with IOUs - a promise to pay with interest once the budget is passed.

"Each day we wait the problem is getting bigger, the deficit is getting bigger," says California Governor Arnold Schwarzenegger.

California is not alone in its deep budget dilemma. It is one of 18 states plus the District of Columbia starting the fiscal year today with a budget deficit. Together the states are short a whopping $57.7 Billion.

Until Pennsylvania agrees on a budget, state workers will lose 30 percent or more of their paychecks starting July 17th.

As hard as the budget decisions are for lawmakers, the impact of the cuts will be even more painful for all those who depend on government spending.

[micheleisfree]

Here's your solution:
Tax the Churches!
Not taxing the churches is NOT Separation of Church and State.

[woeisme1]

by tautomer July 1, 2009 6:55 PM PDT
Gravy only has stones because some productive taxpayer paid for them.
=====================

And you have nothing but stupid posts. The problem with California is the Republican party and their obstructionism. Read news other than this board yourself!

[tautomer]

Care to provide specific examples of California Republicans obstructing California Dems from cutting excessive government and social spending?

[american_11-2009]

California the Golden state, American future, is fast becoming the poster child for an bankrupt third world State!

An unholy alliance of Socialist Democrat politicians, Unions, and Illegal Aliens supporters are feasting at the trough of tax payers paid benefits while taxing & regulating business and the tax paying public into poverty.

The pandering of Left Wing Democrat Politicians to their constituency of Illegal Aliens, open border supporters, and unions are driving business and citizens to other states & countries, while leaving the parasites & welfare leeches in an increasing bankrupt, crime ridden, dysfunctional state!

For years California has ignored economics 101 and imported poverty, Criminals and uneducated Peons from Mexico, which increased Medical, Welfare, Crime, Prison, etc. & adding a estimated 16 billion per year to Calif. State expense to provide for the invading horde of Illegal Aliens while exporting business and educated tax payers.

Like all Socialist & Marxist States the results have been a astronomical increase in social welfare, schooling, prison cost etc. and a lowing of Living standards, Education standards, Tax receipts & finally Bankruptcy.

Failure to abide by our Constitution against invasion & enforce our Immigration laws and constraints on wages and benefits for public employees will result in turning the Golden State into MexiCalif and the end of the Calif. Dream and the beginning of the Calif. Nightmare!

The policies of Obama and Wash. DC Democrats are intent on following Calif. policies and are resulting in the same creeping socialist process across American.

Amnesty & Citizenship as a reward for their invasion of the USA, will result in the rest of the USA turned into a Spanish speaking third world cesspool, modeled on Mexico and follow California into a polluted, over populated, Spanish speaking third world Nation of Crime, Corruption, Poverty, Cruelly & Misery!

This will result in a population depending on Welfare and the Democrat party, thus assuring the lock on power for the Socialist Democrat party of the United States of Mexico!

[ahrats]

State income is limited to what the people can pay (Taxes: income , sales, toll roads, service fees, ect.) with people out of work they can't pay their taxes, do not buy products that support taxes, limit their driving on toll roads. Sin taxes have be raised (tobacco & booze)maybe its time to find some new sources to tax, like the oil companies who make millions but pay not taxes on this income even for top executives. The income from the stock market is taxed differently they those of us who work for a living. Income is income no matter how you make it, pay your fair share, Stock market is taxed lower to encourage investment but its rigged for the wealthy to steal from the less wealthy, not fair. Its time to re-evaluate the tax system for a flat tax, no exceptions. I'll bet the states that have income taxes on top of federal income taxes are the one hurting the most, people there need to hide money they made since its a double whammy.

[nolies74621]

HEY.....CBS!!!!! Quit shielding Barry Soetoro. Why have'nt you reported the rise of unemployment to 9.6% Nation wide? Why have'nt you reported the 370,000 jobs lost in May and forecasted 400,000 jobs lost for June? Hey POTUS where are the numbers for "JOBS SAVED" a fraze you and DUMBO JOE created? There is no way to forecast jobs saved. The mainstream media is treating Berry like a celebrity instead of the elected offcial that he is. At least the White Hose press corp finally stood up to chubby boy Gibbs, Helen and another reporter hammered Gibbs and told him they they were tired of the control of the Barry admin giving the prescreened questions to ask. Helen said it is a farce. Gibbs looked ready to **** a brick. If you want to see the briefing and these two reporters embarrasing Gibbs go to www.realclearpolitics.com It seems CBS won't air anything negative about Barry or his cabinet, I only come here to ridicule thier biased reporting and lack of journalistic integrity, and to PO some loons/lemmings.

[nolies74621]

Oh and by the way I posted this rant because I am sick and tired of watching Barry ruin the county. I still have my job and my military retirement check and combat related disabilty check, but I have a suspiscion that Barry will be targeting my money soon enough, so get ready middle class, he is going to screw us and not even give the benefit of a reach around.

[whitemale08]

I TRIED TO WARN YOU THAT MASSIVE MASSIVE AUSTERITY WOULD COME BECAUSE OF BAILOUTS TO GOLDMAN SUCKS AND JP MORGAN!!!!!

I WARNED YOU!!!!!!

[venkata4--2008]

People calling President Obama administration doing Cali. way. When Bush administration took over he inherited 135 billions budget surplus from President Clinton. That he brought it back to 400 billions deficit in one year.

Internal debt was 5.7 trillions and Bush increased it to 11.4 trillions by funding two wars without rolling tax cuts to richest. So much for fiscal conservatism. Laughable.

Current president inherited 500 + billions budget deficit and 11.4 trillions internal debt. When Bush had budget surplus all he could think of tax cuts to richest and how to start wars so that his buddies will get no bid contracts and his big oil can reap big profits. No controls what so ever on the banking industry.

[payasyougo]

"Cash-Strapped States Face Tough Choices
California To Use IOU's; One of 18 States Struggling With Deficits"
----
Tough choices like what firefighters, police or teachers to cut so that accountants, personal administration assistants, taxpayer paid parking, judge's license plates, petty cash accounts, that new modern office building, etc. won't suffer the consequences of a little blip in the tax revenue stream.

Time to "right size" government.

[frankinaz]

Also time to end illegal immigration to the U. S.; not just to California, but the rest of this country as well.
Although illegal immigration may, or may not be the main cause of California's finanicial woes, it is a cost that the state, along with assistance from other Federal agencies, (Such as ICE as the INS, that can be controlled.
However, the State of California, for the most part, continues to be a sanctuary state for illegal immigrants, and the state's taxpayers will pay for this ignorant attitude, at the expense of the legal Californian's taxpayer expense.

[johninpennsyl]

With the casino money rolling in and those new energy saving lightbulbs,we should be pulling out of the red shortly.

[tautomer]

Gravy only has stones because some productive taxpayer paid for them.

[antoniof123]

It is pretty funny but most of you are really clueless as to what has happened in CA. First of all they had all this great land and education and all the amenities. But someone told them that they could stop paying taxes and didn't have to worry about paying for the borrowed money. Of course for a while you can have great prosperity with debt but then it comes due. Once again Prop 13 was sold on the fact that they could cut taxes and social services but of course no one wants less than they have. Once taxes are cut it is hard to get them back.

So in the end when one state is coned others are too and when one states falls the rest are not far behind. Be careful not to throw stones you your own glass house.

[gravyboat4000]

I'm very careful, with my stones...

[tautomer]

Obviously the best way out of this is to charge Californians for the Social Services they consume rather than taxing them to pay for the services. Ths does several things. First, it balances the budget. Second, It ensures that there are no freeloaders consuming more than they pay for. Finally, it will rid California of the burden of Illegal Aliens.

That way nobody is forced to pay for anyone else. Of course they can if they want to philanthropically. Liberals don't like philanthropy because the DONOR controls the money instead of them. Libs LOVE spending other peoples money!!!

[libscrytoo]

Gravy your not careful with your stones at all.

[gravyboat4000]

The budget in California is simple. Cut Cali employees to 3 non-paid days off a pay period.

SHUT UP! You got a job, a bunch of us don't!

(and california's unemployment peeps are being d!cks, i wonder why?)

Then, the legislators can start taking pay cuts.

SHUT UP! You all are talkin about taking food off of people's plates, and leaving them with little or no healthcare!

All in the name of,"no tax increases"?

Hypocrites!

Hey Arnold, why don't your steroid arse start workin for free? That'd be a nice,"gesture".

You will go down as the WORST Gov. in Caleeefoynia's history!

And no Austrian immigrant will ever attain any public office in this country again!

(i loved you in the conan movies)...

[tautomer]

California is a great example of Liberal government gone awry. They simply promised people more than those people paid for, just as Obama has now done on a national scale. Pelosi, Waxman, Feinstein all trying to do for the country what they did to California! LMAO.


Taxes won't help, Gravy. If you raise taxes the state just has to replace the services that the taxpayers could other wise have purchased on their own, so its a zero-sum proposition.

Maybe if California would stop paying all the freight for illegals they would leave and go to Hugo Chavez' Venezuelan Paradise that Obama LOVES so much! They could also make the clinics "pay for care", wherein patients would actually pay for the services they receive.

That's a Liberal nightmare!!!! Someone actually paying for services, oh no!!! Libs promised a free lunch!!!

[gravyboat4000]

"libs"?

Arnold is a Rebpublicn.

And I offered several alternatives to raising taxes.

Everyone has to cinch their belts. But cutting social services isn't a choice here. That's clearly a conservative plan of action. So, your comment about California being a,"liberal govt.", is just stupid.

When it comes down to people not eating~VS~people cutting back on how many cigars they smoke a week, the hungry always win.

You clearly don't know W.T.F you are talking about.

[tautomer]

Arnold is a member of the Kennedy clan, I rest my case. Arnold however has actually been the guy proposing spending cuts with modest tax increases. California voters rejected a tax increase referendum in May 2009.

Similarly Democrats in the California State Senate have resisted spending cuts for social services as well as salary cuts for state employees.

Nor were Republicans supportive of providing social services to illegal aliens. Cali is the Bluest of the Blue States and is reaping what it sowed. Obama now has the entire nation headed down the same deficit-ridden path.

[frankinaz]

Pelosi, Waxman, Feinstein all trying to do for the country what they did to California! LMAO.
Barbara (Call me "Senator") Boxer should also be included here too.

[nolies74621]

Not to defend Arnie but I think he is working for free or something like a dollar a day.

[woeisme1]

I imagine this will have far reaching consequences for the rest of the country.

[vietnamwar]

This is what happen when you rely on one source of income (TAX), I said drill now and gett a second of INCOME, NO EXCUSES...

[gravyboat4000]

We can't afford to,"drill now". And it would take 10 years for the State to see any profit from drilling.

[vietnamwar]

This is what happen when you rely on one source of income (TAX), I said drill now and gett a second of INCOME, NO EXCUSES...

[brianbwb-2009]

OK Mr. drill guy, and how do you propose to get the oil companies to pay taxes on what they steal from us?

I don't mind drilling so much, except for the fact that any money that is made from the oil will go to private companies who will immediately hide it offshore, and not pay taxes on it, and they will be aided in this by the knee-jerk "no taxes" neos.

So from where comes this "second income"?

Probably from the same place from whence your comment was pulled.

[brianbwb-2009]

OK Mr. drill guy, and how do you propose to get the oil companies to pay taxes on what they steal from us?

I don't mind drilling so much, except for the fact that any money that is made from the oil will go to private companies who will immediately hide it offshore, and not pay taxes on it, and they will be aided in this by the knee-jerk "no taxes" neos.

So from where comes this "second income"?

Probably from the same place from whence your comment was pulled.