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User Info California to run out of cash in March in forum [NotSoBreaking]
V
Posts: 265
Incept: 2007-11-27
Gold
So Cal
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January 31, 2012

Controller: State to run out of cash in March without action

California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.

The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.

Read more here: http://blogs.sacbee.com/capitolalertlate....

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People should not be afraid of their government.

Government should be afraid of their people.
Genesis
Posts: 130796
Incept: 2007-06-26
Admin A True American Patriot!
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Again?

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Capeman
Posts: 3703
Incept: 2007-07-12
Gold
San Diego
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smiley

There go more teaching jobs.

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"I believe all God's creatures have a soul... except bears, bears are Godless killing machines!"
- Steven Colbert
Gates
Posts: 6276
Incept: 2008-01-29
Gold A True American Patriot!
Scottsdale
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obammy will figure out a way save his major voting block state - watch
Jazen
Posts: 3417
Incept: 2007-07-17
Green
****cago
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Illinois is next....

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I hate our Government, but I still love America.
Mpilar
Posts: 5613
Incept: 2009-01-05
Gold
Nashville, TN
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"California to run out of cash xxxxxxx..."
"Illinois is next..."

Don't we already have 75 threads that contain exactly these phrases in them somewhere?

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken
Nullzero
Posts: 947
Incept: 2008-11-19
Green
SOCAL
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Since California is the world's 8th largest... this does not bode well for the U.S. or the world. I guess the games and financial schemes wore off from last time.

The new solution the state is going to come up with (same as the old)...

Raise sales tax and other taxes.
Don't cut spending for any of the bloat or bureaucratic state positions.
If spending needs to be cut, make sure its the parks and beaches first (This state needs no extra tourism dollars)... because they want to make it visible to the public and warrant more taxes.

Spence
Posts: 2551
Incept: 2009-09-11
Green
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This is why I always make sure to owe a little bit of CA income taxes when I file, rather than get a refund. A couple years ago they were sending people IOUs for their tax refunds.
Marvinmartian
Posts: 754
Incept: 2011-03-16
Green
Pasadena, CA
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IN DECEMBER, California has dicovered a $5.2 billion shortfall in the 2011-12 budget. This is due equally to higher-than-projected spending and lower-than-expected tax income. This was pointed out by the controller in Dec 2011 in a letter to the legislature.

Today, the controller says California will run out of cash March 8 unless steps are taken.
source: http://www.sco.ca.gov/

The steps seem to be SB 95.

This bill raids a "pooled money" account and lets it be "loaned" to the general fund during the fiscal emergency.

This is a desperation move.

Source: http://www.aroundthecapitol.com/Bills/SB....

Quote:

SB 95 (Committee on Budget and Fiscal Review)
State cash resources.

(1)Existing law establishes the Condemnation Deposits Fund in the State Treasury, consisting of all money deposited in the State Treasury pursuant to the Eminent Domain Law, including interest derived from its investment. Existing law requires the Treasurer to receive all money intended for the fund and to duly receipt for, and safe keep all money in the fund.

This bill would instead require the Treasurer to receive and duly account for all money in the fund, and would authorize the Controller to use any money in the fund for cash flow loans to the General Fund, as specified.

(2)Existing law requires the Controller to notify the Governor and the Pooled Money Investment Board when the General Fund in the Treasury is, or will be, exhausted, and authorizes the Governor to transfer all or part of the moneys not needed in other funds or accounts to the General Fund, as determined by the Pooled Money Investment Board. Existing law provides that all moneys in the State Treasury may be loaned for these purposes except, among others, money that the Controller is prohibited from transferring pursuant to the Constitution, bond indenture, or statutory or case law.

This bill would instead authorize all moneys in the State treasury to be loaned for these purposes except, among others, money that the Controller is prohibited from transferring pursuant to the Constitution, bond indenture, or case law. The bill would also make a technical, nonsubstantive change to these provisions.
(3)Existing law creates the Highway Users Tax Account, in which are deposited motor vehicle fuel tax and diesel fuel tax revenues available for allocation to transportation purposes. Existing law creates the Transportation Investment Fund, in which are deposited a portion of gasoline sales tax revenues to the extent a gasoline sales tax is imposed.

This bill would authorize the Controller to use the funds in the Highway Users Tax Account and the Transportation Investment Fund for cash flow loans to the General Fund, as specified. The bill would also authorize similar cash flow loans to the General Fund from the Motor Vehicle Fuel Account, the Transportation Revolving Account, and the State Highway Account.

Mayorquimby
Posts: 13909
Incept: 2008-09-18
Green
The Archaic Past
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They could probably balance their budget by giving prison psychologists 25% pay cuts.

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They who wish to hurt you, work within the law.
- Morrissey

Gold is theft.
V
Posts: 265
Incept: 2007-11-27
Gold
So Cal
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On top of all this Jerry Brown has proposed using a speculative $1 Billion purportedly to come from California's new Cap n Trade revenues to finance a portion of the $100 Billion dollar High Speed Rail to "no where" project.

$1 billion yearly at today’s bond interest rates would only finance about $20 billion of the estimated $100 billion needed for the High-Speed Rail project. Rider fees on the new train would not come anywhere near paying for the system.


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People should not be afraid of their government.

Government should be afraid of their people.
Greednfear
Posts: 176
Incept: 2008-10-12
Green
Seattle
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Quote:
higher-than-projected spending and lower-than-expected tax income


Hey, where's that unicorn?
Standby
Posts: 1005
Incept: 2009-08-06

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GD it! Didn't they say that last year? They're putting out the SOS for another stick save. Meanwhile, spend til bankrupt.
Spanktron9
Posts: 2787
Incept: 2009-03-13
Gold
Reality.
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These shortfalls are small and will continue to be papered over through intergovernmental borrowing and sale of future revenues (bottles and canssmiley). Illinois 8.5 billion in overdue invoives and they don't care. Until tax revenues REALLY start to tank, nothing will be done.

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"Winter is coming." -Motto of House Stark
"Mo'lon La'be"- Leonidas
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Whewt
Posts: 2295
Incept: 2008-03-17
Gold A True American Patriot!
Lake Bonneville Shoreline!
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I think as long as they allow the EU to have control over their budget and first crack at the tax revenues, they will be able to come to some sort of borrowing agreement.


Oooops, wrong thread. Never mind.

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Except for the math, it's all going to work out.
Snooze
Posts: 2829
Incept: 2007-07-09
Gold
florida
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They should just appoint Krugman to the position of State Treasurer. He has all the answers and we need to see him prove it. smiley

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Wealth is found in the warmth of the sun, in the coolness of moist soil, in the taste of fresh air, and in the pulse of your heart. Plant a seed and harvest your riches.
Mangoelvis
Posts: 1727
Incept: 2009-07-11
Gold
Las Vegas, NV
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This has gone on wayyyyy longer than I thought it would already. I'm really numb to these types of headlines at this point.

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Evolutionarily speaking, sloths must taste terrible.
Jackl
Posts: 2237
Incept: 2008-01-17

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Every year its the same thing.

California is almost out of money!
California finance talks stalled!
California Borrows money for next year!

Next Year:


California out of money again!!(Who could have known?)


You'd think they'd figure it out by now.
Ghopper
Posts: 2317
Incept: 2011-06-11

Staten Island, NY
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They should just raise taxes and cut nothing.
It is always a successful strategy.

smiley
Andysvw
Posts: 1753
Incept: 2010-06-26
Green
Tujunga Ca
Online
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They could shake that much out of the banker tree. Oh Jamie come on down! To the court house. And bring your little tanned friend with ya.
Ironman09
Posts: 2794
Incept: 2007-08-08
Green
La La Land
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what did they to do come of "ran of cash crisis" last time ? rinse, repeat and spare us.

F*CKing Idiot Kalis.

Thank You.

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- Short the Phone Book roll-over to 1330 ( May 6th,2013)

Argos
Posts: 6338
Incept: 2008-03-23
Gold
The Green Mountain State
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From Dow Jones Newswires (no link yet):

California is looking to borrow up to $1B via a private placement, according to Tom Dresslar, a spokesman for Treasurer Bill Lockyer.
Grace
Posts: 519
Incept: 2008-10-15
Silver
upstate new york
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A FOAF moved their child from public to private school in CA because they were no longer offering the high school classes that were necessary for a college bound student...bare bones classes

Argos
Posts: 6338
Incept: 2008-03-23
Gold
The Green Mountain State
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Link to Dow Jones Newswires article cited earlier:

http://www.nasdaq.com/article/update-cal....
Preidt2
Posts: 552
Incept: 2009-07-31
Green
spokane/wash
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Maybe the pol can sell her airplane ?

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Puppets Under Destruction
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