Fiscal Illiteracy--Democrats Lead the Way Again in CA

Holy mother of god you can’t make this shit up.

http://latimesblogs.latimes.com/california-politics/2010/05/assembly-democrats-call-for-new-oil-tax-borrowing-to-balance-californias-budget.html

“At the heart of the proposal is the idea of raiding the state’s bottle deposits for the next 20 years and then getting an $8.7-billion loan from Wall Street. The programs currently funded by bottle deposits would be reimbursed by a new tax on oil production.”

Perhaps this guy should get into creative dance, or creative writing, anything other than politics.

What don’t you like about it? What do you propose to solve the budget issues in CA?

I’ll hang up and listen

What don’t you like about it? What do you propose to solve the budget issues in CA?

I’ll hang up and listen

How about slashing public pension expenses, busting the public unions, eliminating welfare programs, privatizing the prison system, and putting in some pro-growth, pro-jobs policy initiatives to bring back jobs and companies to the state for starters.

The NJ model would be my template.

**How about slashing public pension expenses, busting the public unions, eliminating welfare programs, privatizing the prison system, and putting in some pro-growth, pro-jobs policy initiatives to bring back jobs and companies to the state for starters. **


Dang, took the words right out of my mouth.

'Ceptin I would have put SLASHING in bold.

How about slashing public pension expenses, busting the public unions, eliminating welfare programs, privatizing the prison system, and putting in some pro-growth, pro-jobs policy initiatives to bring back jobs and companies to the state for starters.

Dang, took the words right out of my mouth.

'Ceptin I would have put SLASHING in bold.

+1

The NJ model would be my template.

Check out NJ’s property tax rates vs California…

Have fun selling that…

We need to export Prop. 13 to NJ.

Check out NJ’s property tax rates vs California…

Have fun selling that…

Why does one need to “Sell it”? If Californians want all the goodies don’t they have to pay for them? Either you cut the spending or you pay more, one or the other.

Effective tax rate in NJ hovers around 1.5% of home value and 7.5% of income. Effective Tax rate in CA is around .5% and ~3% of income. Maybe if they paid what NJ is paying then many of their problems would be solved.

OF course I don’t believe that and believe it will just lead to more spending. Illinois for example Is around 2-2.25% effective tax rate and 5-6% of income…we are in the same boat as CA.

~Matt

The unions definitely need some smacking. Especially the prison guards.

Privatising prisons is just terrible public policy. We, as a society, need to put fewer people in jail, and incentivizing a large corporation/s to try and keep people in prison just seems like a recipe for disaster. Fundamentally the state needs to pay the cost of imprisoning people so that eventually all the tough on crime politicians will connect the dots between giving people for 25 to life for speeding tickets and the huge amount of money the prison system consumes.

What don’t you like about it? What do you propose to solve the budget issues in CA?

I’ll hang up and listen

How about slashing public pension expenses, busting the public unions, eliminating welfare programs, privatizing the prison system, and putting in some pro-growth, pro-jobs policy initiatives to bring back jobs and companies to the state for starters.

The NJ model would be my template.

Privatize Prisons/Union Busting would be a good start. Where is Reagan when we need him, remember the FAA incident when he fired all the union members on strike.

http://realcostofprisons.org/blog/archives/2010/03/strapped_states_1.html

Fully 9.5% of the California state budget is allocated toward prisons. Only 5.7%, by comparison, goes to universities.

Yet relatively high on the scale are state prison guards, who can, with overtime, easily earn more than $100,000 a year. By contrast, a kindergarten teacher in the Golden State can expect to pull down an average of $56,540.

Wages are only the tip of the compensation iceberg. Guards also receive generous health care and retirement benefits. You won’t get 90% of your salary in retirement. A prison guard in California, however, absolutely will. The Governator is not happy with this.

Arnold Schwarzenegger is sponsoring a ballot initiative that would automatically give more money to higher education than to prisons. He has also said he wants to build jails in Mexico to house the 20,000 or so illegal immigrants in California prisons.

There you go using actual solutions again. The libs want magic!

The other real problem is they aren’t actual solutions. That is they’re solving the wrong problem. The real problem isn’t the budget per se, it’s the process to pass the budget. The democrats would pass solutions that would close the budget if they could, and so would the republicans. But nobody has 60% so they just fight each other. It’s pretty broken.

There you go using actual solutions again. The libs want magic!

From a practical standpoint, they are about as much of a solution as hoping that funds magically appear in the state’s treasury.

The NJ model would be my template.

Check out NJ’s property tax rates vs California…

Have fun selling that…

I’m not talking about property rates.

I’m talking about making the necessary cuts to reduce a bloated, progressively inflated, and unsustainable state fiscal apparatus.

The progressive answer is to raise taxes, but guess what, people are mobile, and they will leave the state, if you raise taxes.

I have pointed to countless articles and studies showing this exact mechanism playing out repeatedly.

The best thing for CA would be to declare bankruptcy and eliminate all pension obligations for unionized state workers, cut pay 25%, and privatize as much of the state controlled functions as possible.

You watch, such a scenario as I type sounds ridiculous, but it will be the only way out for these bankrupt states.

So cutting spending is a fantasy so you don’t spend more than you take in is unrealistic? How long have you been in bankruptcy?