Why California won’t go bankrupt

Posted by | Posted in Society | Posted on 21-05-2009

Last Tuesday, Californians went to the poll Daffy – The Commando psp , and rejected five propositions that were meant to “balance the budget”. In actuality, they would have robbed Peter to pay Paul.  Politicians threatened before the election that if the five measures did not pass, the state would face a $21Billion dollar hole (up from $14 Billion currently), but voters saw right through the scare tactics.  The only proposition that passed was one that prevent state and local lawmakers from awarding themselves pay raises while the budget showed a deficit:

1A

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Extends the sales tax increase from 2 to 4 years. FAIL

1B Something about actually funding the schools with money allocated currently to schools starting in a few years maybe. FAIL Double Dragon movie download Bandslam movie Dedication film How to Make an American Quilt

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1C Sells the State Lottery and leases it back to “save” money. FAIL

1D

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Shuffles money around in children’s programs. FAIL

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1E Hello Mary Lou: Prom Night II trailer Takes money from mental health programs and promises to probably pay it back someday. FAIL

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1F Suspends pay raises when the budget isn’t balanced. PASS

California State Flag

California State Flag

So, what is California to do? They could always declare bankrupty. They could lower benefits for state unions, especially after retirement.  Or stop spending money they never really had in the first place.

Yeah, like that’s going to happen.

The answer, I believe, was uttered very clearly by commenter
“Peripheral Visionary” at exurbannation.blogspot.com: (emphasis mine)

I think the denial may be on the side of those celebrating the “victory”, unfortunately. [Exurbannation host] Rob has already seen which way the wind is blowing, and the Federal government will be involved at some point. They have to; no way will they let California fail and (more importantly!) risk it going Republican Meet the Fockers , which would turn the country upside down. Look for bailouts for California and for any other big blue states looking at a major deficit (Massachusetts? New York?) Yes, the “flyover” states will be enraged, but in the cynical electorate calculus, they just don’t add up to much.

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____________________
Written by Jean Valjean
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