California tax revolt: What next?

posted at 8:40 am on May 19, 2009 by Karl

The Los Angeles Times claims that the campaign over six state budget propositions on today’s ballot in California ended with a whimper, and seeks to downplay the expected result by predicting a low turnout. But yesterday was more like the calm before the storm.

Tonight’s results will gauge what polls suggest is voter fury over the failure of the Republican governor and the Democratic-controlled Legislature to balance the state’s books.

As Californians struggle with joblessness, home foreclosures and sharp losses in the stock market, the state has raised taxes, cut spending and borrowed to fix a $42-billion shortfall — and still remains more than $15 billion shy of a balanced budget.

If voters reject Propositions 1C, 1D and 1E — the three chief money-raisers on Tuesday’s special election ballot — the shortfall will grow to $21 billion.

Gov. Arnold Schwarzenegger and his Democratic allies trotted out the usual human shields in this fight — kindergarteners, firefighters and policemen, nurses, etc. They outspent their opponents by seven-to-one. None of it worked. Although the opposing sides here did not always follow partisan lines (e.g., the SEIU opposes the initiatives), a recent Field Poll showed 72% of voters agreeing that rejecting the measures “would send a message to the governor and the state legislature that voters are tired of more government spending and higher taxes.”

In the face of expected defeat, Schwarzenegger has fled cross-country to Washington, DC, to listen to Pres. Obama talk about new federal tailpipe emissions. There is even more of a metaphor in the trip than the obvious punchline, as California’s future is likely to be found in DC. California Treasurer Bill Lockyer has already asked Treasury Secretary Timmy Geithner to backstop a wave of short-term borrowing California will need to undertake this summer. Indeed, the Busness Insider notes that the yield on California debt has already been shrinking:

We’d say that the market is probably also pricing in the possibility that Barney Frank will get his way and we’ll have a federal backstop of all muni debt soon enough. Even without a formal backstop, we think it’s unlikely that the Obama administration and a Democrat controlled Capitol Hill would let California default.

This is another way that we’ve broken the signalling function of the credit markets, which no longer provide clear indications of expected economic performance thanks to the numerous and varied government interventions.

This is more of the uncertainty that undermines economic recovery. But an administration running auto companies for the benefit of the UAW and its political viability in the Rust Belt undoubtedly considers the Golden State “too big to fail.” After all, the New York Daily News headline would write itself: “Obama to California: Drop Dead.”

However, bailouts are unpopular. Many Americans will chafe just as much at the prospect of paying to bail out California’s decades of inept govenment as they do at paying to bail out GM’s decades of inept management. Obama would bail out California to hold onto those electoral votes, but he will have to worry about how many he loses in the process.

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Comment pages: 1 2

I say Tax Hollywood and the entertainers at 90%! They need to be more patriotic

will sass u on May 19, 2009 at 8:41 AM

Ironic – Arnold came to the U.S. as a poor immigrant and moved to the nations richest state, California.

Today – he is a wealthy citizen, and Governor of the nations poorest state, California.

What the hell?

jake-the-goose on May 19, 2009 at 8:42 AM

I have more respect for Gerald Ford.

Dr.Cwac.Cwac on May 19, 2009 at 8:44 AM

However, bailouts are unpopular. Many Americans will chafe just as much at the prospect of paying to bail out California’s decades of inept govenment as they do at paying to bail out GM’s decades of inept management. Obama would bail out California to hold onto those electoral votes, but he will have to worry about how many he loses in the process.

Since ultimately all of us would be paying for KaleeFORNya, couldn’t this be considered “taxation without representation”?

Dr.Cwac.Cwac on May 19, 2009 at 8:45 AM

I already pay for the inept government in Ohio and in DC.

I would rather not pay for the inept government of California.

myrenovations on May 19, 2009 at 8:46 AM

What’s next?

IDK

Say…

Skynet becomes self aware?

blatantblue on May 19, 2009 at 8:47 AM

I think we should keep in mind that our nation and our currency is not too big to fail. The entire country is on a path similar to that of California – and I don’t care how many Barney Frank backstops (pun intended) there are – we can go bankrupt.
And some really believe that not enough regulation and low taxes caused this.

JeffinOrlando on May 19, 2009 at 8:47 AM

NEXT?

State receives bailout money and we know what is next. It is no longer a “state” just part of the GOVERNMENT TAKE-OVER.

stenwin77 on May 19, 2009 at 8:48 AM

What happened to being able to make hard choices? Why doesn’t Schwartzenegger just tell every single department that they’re doing with 20% less next year, and to make it happen? Desperate times call for desperate measures, and if the people of California have to wait in line to apply for food stamps, so-friggin’-be it.

RWLA on May 19, 2009 at 8:48 AM

“It’s not a tuma.”

Yes, Arnold, you are.

Bishop on May 19, 2009 at 8:49 AM

NEXT?

State receives bailout money and we know what is next. It is no longer a “state” just part of the GOVERNMENT TAKE-OVER.

stenwin77 on May 19, 2009 at 8:48 AM

Does that mean we’re down to 49 states?

Dr.Cwac.Cwac on May 19, 2009 at 8:50 AM

As Californians struggle with joblessness, home foreclosures and sharp losses in the stock market, the state has raised taxes, cut spending and borrowed to fix a $42-billion shortfall — and still remains more than $15 billion shy of a balanced budget.

Liberalism in a nutshell.
The same people who have broken California (the 7th largest economy in the world) are the same ones constantly telling everyone how “smart” they are.

Baxter Greene on May 19, 2009 at 8:51 AM

Why doesn’t Schwartzenegger just tell every single department that they’re doing with 20% less next year, and to make it happen?

RWLA on May 19, 2009 at 8:48 AM

He is weak.

myrenovations on May 19, 2009 at 8:51 AM

and just wait until CO2 emissions are outlawed. everyone in LA will be in jail. who will pick up that tab?

kelley in virginia on May 19, 2009 at 8:52 AM

Does that mean we’re down to 49 states?

Dr.Cwac.Cwac on May 19, 2009 at 8:50 AM

According to Obama,we would be down 56 states.

Baxter Greene on May 19, 2009 at 8:52 AM

There are a lot of tough choices not being made. Especially about the cost of illegals and their effect on the schooling system and medical industry. I’ve lived in southern California for eight years and I think Arnold is turning into the girlie-man he once complained about.

Ernest on May 19, 2009 at 8:53 AM

We’d say that the market is probably also pricing in the possibility that Barney Frank will get his way and we’ll have a federal backstop of all muni debt soon enough.

Good grief. Federalism is just about completely dead, isn’t it?

BadgerHawk on May 19, 2009 at 8:53 AM

I think we should keep in mind that our nation and our currency is not too big to fail.

This isn’t about our country or our currency. This is about Obama. The majority of Californians support Obama. The polls showing the propositions being defeated means the Dems ran a lousy ground game in CA.

Clearly they could have simply told the blacks and Hispanics that they need to turn out massively to vote for tax increases that Obama (Schwarzenegger) promises they themselves won’t have to pay. That Schwarzenegger didn’t do that effectively simply shows that he’s not as good a pandering scumbag as obama is.

Finally, remember Obama is too black to fail. What’s more important, one state’s economy, or our first legitimate president?

JiangxiDad on May 19, 2009 at 8:53 AM

Still, no need to worry.

Ogabe will bail out California in return for being allowed to appoint all the top people in the state government, deciding the pay of private business executives, unionizing half the state’s workforce and converting everything to solar power.

Oh, and the entire Napa Valley will be sold to Michelle Ogabe for ten bucks.

Bishop on May 19, 2009 at 8:53 AM

When we reward obvious failures it diminishes the motivation to succeed. Bailing out California would cause Obama to lose the next election if it is a fair one. Of course, since ACORN is already under indictment for voter fraud in 14 states and are receiving $4,000,000,000 dollars from the stimulus then fair elections are a thing of the past if Obama has his way. This is a re-run of Germany in the 30s, but few Americans are educated enough to to have a clue. Obama’s Youth Corps + Hitler Youth Corps. That the ticket.This is so obvious, it’s nauseating.

volsense on May 19, 2009 at 8:54 AM

Everyone

give him a break

his CPU is a neuro-net processor, a learning computer

blatantblue on May 19, 2009 at 8:54 AM

Ahnold reminds me a lot of Obama. Egomaniacs with supreme arrogance. Both are trouble.

marklmail on May 19, 2009 at 8:54 AM

The money that California would get from drilling for oil/natural gas and the land leases would put them in the black without all the tax increases and gutting the consumer.

But this is out of the question for the “smart ones”.

Baxter Greene on May 19, 2009 at 8:55 AM

Everyone
give him a break
his CPU is a neuro-net processor, a learning computer
blatantblue on May 19, 2009 at 8:54 AM

*spews across the room*

Bishop on May 19, 2009 at 8:57 AM

As Californians struggle with joblessness, home foreclosures and sharp losses in the stock market, the state has raised taxes, cut spending and borrowed to fix a $42-billion shortfall — and still remains more than $15 billion shy of a balanced budget.

So has anybody in the California Legislature looked at the budget to see if there is an item or two that could be dropped to save a little money? Have the people of California looked at the state budget so they can make a few suggestions? My suggestion is, “Have a Governor who actually lives in the state capital and doesn’t commute by jet every day.” That alone would save millions a year. I know it sounds paltry compared to the deficit, but you have to start somewhere.

Tommy_G on May 19, 2009 at 8:57 AM

and i remember when the Republicans were so very sorry that Arnold was not “natural born” & therefore could not run for President. back then, we thought he stood for something.

kelley in virginia on May 19, 2009 at 8:57 AM

Bishop on May 19, 2009 at 8:57 AM

What can I say? I’m just uber excited for Terminator Salvation!

blatantblue on May 19, 2009 at 8:58 AM

but hey, what does “natural born” have to do with anything?

kelley in virginia on May 19, 2009 at 8:58 AM

Baxter Greene on May 19, 2009 at 8:52 AM

Thanks for taking that joke home. :)

Dr.Cwac.Cwac on May 19, 2009 at 8:58 AM

Arnie is playing out like the main character in The Jerk – from rags to riches to rags.

beatcanvas on May 19, 2009 at 8:59 AM

But California only cut their Sea Otter budget by half and maybe they should do away with that 16 Billion they are spending on medical care for illegal aliens, or maybe a fireman should not be paid $175,000 a year and retire with 100 pension for life. So to tell America they cannot cut spending.

sargentj on May 19, 2009 at 9:01 AM

Let them fail. It is way past time for some tough love and a wakeup call for the rest of the nation. Let the country watch the refugees flood across the borders into Arizona and Nevada into tent camps set up by the UN.

Well… One can still dream, right?

Yoop on May 19, 2009 at 9:03 AM

maybe a fireman should not be paid $175,000 a year and retire with 100 pension for life.

sargentj on May 19, 2009 at 9:01 AM

Is that an accurate number? Holy crap.

BadgerHawk on May 19, 2009 at 9:04 AM

Thing is, Ogabe won’t allow Cali to fail; there are 44 blue electoral votes at stake (147 electoral votes after ACORN massages the 2010 census).

Now if this were South Dakota and its 3 red electoral votes, Ogabe would be telling the state it has to buck up and face the consequences.

Bishop on May 19, 2009 at 9:07 AM

The taxpayers lifeboat is full. If Cali gets in, we all get capsized and drown.

It’s time for a nationwide tax revolt.

Boycott ALL taxes where possible.

roninacreage on May 19, 2009 at 9:07 AM

Baxter Greene on May 19, 2009 at 8:52 AM

Thanks for taking that joke home. :)

Dr.Cwac.Cwac on May 19, 2009 at 8:58 AM

No problem,you made a good point and did it humorously.

Baxter Greene on May 19, 2009 at 9:09 AM

Let’s see… Why not get rid of your illegal aliens, and then get rid of Nancy Pelosi’s 30M salt marsh mouse project.

That’d be a start.

Key West Reader on May 19, 2009 at 9:10 AM

He is weak.

myrenovations on May 19, 2009 at 8:51 AM

Unfortunately, yes he is weak. In the beginning of his governorship though he was pushing for some pretty tough reforms which the people themselves voted down. So screw the people of Califronia. They whine and moan but fall for the same tricks every election cycle and vote for the same people. Either that, or they move to States like Arizona and Colorado and … still vote for the same people.

Daemonocracy on May 19, 2009 at 9:11 AM

The taxpayers lifeboat is full. If Cali gets in, we all get capsized and drown.

It’s time for a nationwide tax revolt.

Boycott ALL taxes where possible.

roninacreage on May 19, 2009 at 9:07 AM

Tea parties are, among other things, a tax protest. I think beyond that, people ought to consider coordinated days of not showing up to work, sick-outs, etc. It will make the point of showing who the producers are, and what the consequences will be of pushing them too far. Shut down America. (It worked for Gandhi against the British.)

JiangxiDad on May 19, 2009 at 9:13 AM

What happens when the federal government finds itself not only running two car companies, but also the 7th largest economy in the world, when it’s supposed to be running the 1st largest and is failing miserably at that?

And is California still going to be bleating “state’s rights” about marijuana when Obama’s in their cockpit?

amkun on May 19, 2009 at 9:13 AM

Daemonocracy on May 19, 2009 at 9:11 AM

Boom, bada, bing!

Tired of blaming the Arnies and Barrys. The peeps vote for these folks, the peeps can live with these folks.

Limerick on May 19, 2009 at 9:13 AM

Meanwhile, the depression continues to worsen.

corona on May 19, 2009 at 9:15 AM

Boycott ALL taxes where possible.

roninacreage on May 19, 2009 at 9:07 AM

But will you come visit me in prison?

myrenovations on May 19, 2009 at 9:16 AM

All of the big tax states (ALL OF THEM)-California, New York, NJ, Illinois and all other usual suspects are in big economic trouble. How ironic-the more you tax the bigger the hole you dig. It has always been this way.

This is because of the THEORY OF STATIC TAXES. If a 3% tax yields $3 billion dollars in revenue a 6% must, perforce, yield $6 billion. However, tax increases always lead to DYNAMIC not static responses. Highly taxed individuals move out of state (or country), find tax shelters or cut back on earning taxable income. The final result is a lower tax base, less production and fewer services.

Ironically-even if a tax increase did match dollar-for-dollar increased income it would still not be enough because of pork, graft and corruption. For every $1 in increased revenue, $1.50 would be spent. It doesn’t matter how much money you throw at a problem-it is never enough. As economist Milton Friedman put it “If the government were put in charge of the Sahara Desert there would be a shortage of sand.”

If you want to generate more income, LOWER TAXES and reduce the number of state (or federal) employees.

MaiDee on May 19, 2009 at 9:16 AM

I say Tax Hollywood and the entertainers at 90%! They need to be more patriotic

will sass u on May 19, 2009 at 8:41 AM

Ja zat ees right! Hey wait a minooote.

Run get to da Choppa!

sven10077 on May 19, 2009 at 9:17 AM

But will you come visit me in prison?

myrenovations on May 19, 2009 at 9:16 AM

There won’t be enough revenue for prisons.

roninacreage on May 19, 2009 at 9:18 AM

Is that an accurate number? Holy crap.

BadgerHawk on May 19, 2009 at 9:04 AM

Pretty close……

Check out this article from WSJ.
http://online.wsj.com/article/SB122540831980086085.html

Here’s the important part.

After Sept. 11, California municipalities moved to increase wages and benefits to attract police officers and firefighters. Vallejo joined a consortium of cities in the region, including Oakland and San Francisco, that used each city’s salary and benefit increases as a guide for labor contracts.

Before that, in 1999, state lawmakers had adopted a measure called “3% at 50″ that allowed local and state police officers and firefighters to retire at 50 years of age with 3% of their highest annual salary — multiplied by the number of years served. The legislation granted thousands of public-safety workers a retirement payout of 90% of their former salaries for life. The benefit, bolstered by post-9/11 recruiting, swiftly became a major staple for most California cities.

Those full-natured benefits created a bidding war among Northern California cities, and Vallejo negotiated lucrative wage increases with police and firefighter unions to stay competitive. Three years ago, the city agreed to a 20% pay increase between 2007 and 2009; an average police officer now makes $121,000. When benefits are included, the number rises to more than $190,000. By 2007, 80% of Vallejo’s budget was dedicated to police and firefighters.

This is nothing compared to Social Security and Medicare. Good thing we elected the fiscal conservative Barack OPrompta, right? (crickets chirp)

Dr.Cwac.Cwac on May 19, 2009 at 9:19 AM

Good post, Karl.

CP on May 19, 2009 at 9:20 AM

As Californians struggle with joblessness, home foreclosures and sharp losses in the stock market, the state has raised taxes, cut spending and borrowed to fix a $42-billion shortfall

Incorrect. This has never happened – except for the standard “we call it a cut when we reduce the amount of the planned increase in spending” bs.

peski on May 19, 2009 at 9:21 AM

More evidence that liberals are not smart enough to run a lemonade stand:

(via Instapundit)

Soak the Rich, Lose the Rich
Americans know how to use the moving van to escape high taxes.

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.

Did the greater prosperity in low-tax states happen by chance? Is it coincidence that the two highest tax-rate states in the nation, California and New York, have the biggest fiscal holes to repair? No. Dozens of academic studies — old and new — have found clear and irrefutable statistical evidence that high state and local taxes repel jobs and businesses.

This has been going on for years yet the people in these states continue to vote these liberal idiots back into office.

Let California fail.
The people have chosen failure at the ballot box,let them have it.

Baxter Greene on May 19, 2009 at 9:21 AM

This is nothing compared to Social Security and Medicare. Good thing we elected the fiscal conservative Barack OPrompta, right? (crickets chirp)

Dr.Cwac.Cwac on May 19, 2009 at 9:19 AM

+1 nice post

the assumption some make that Democrats don’t grasp that the Laffer Curve is real because of the dynamic responses to the static stimuli of taxation makes the leap of faith that the democrats don’t view the entire revenue stream via taxation as a gigantic social warfare lab….

Ogabe admitted as much.

sven10077 on May 19, 2009 at 9:22 AM

I suggest we make a two state sollution. The east Bank and the West bank. New York and california separate from the other states. Test it here and ignore Israel.
The economists in those two states are so stupid. If they have the highest taxes, their claims are they should have the largest surplus. It doesn’t work that way. You can’t tax yourself into prosperity.

seven on May 19, 2009 at 9:24 AM

Cops making an average of 121,000 a year? Daaaaayumn. Is this just the ones out on the street or any position? If it’s any position then a desk job at the lost cat department has never sound so appealing.

Daemonocracy on May 19, 2009 at 9:25 AM

Please remember that not ALL of the people of California voted for the current crop of retards. If actual area is considered rather than population, most of California is red. Get rid of the urban pest holes and the state would have a chance. Of course, that applies for nearly every large urban area in every state. It seems like the tighter you pack the bodies, the less the brain tends to function.

Also, just a reminder, the voters of California approved Proposition 187, which severely limited the rights of illegal aliens to receive benefits of any kind. Our vote was overturned by the courts.

speed911 on May 19, 2009 at 9:26 AM

NOTE TO CALIFORNIANS

We don’t want you in Texas. DO NOT COME HERE. We love our state, we love our country.

We believe in working for what we have, and keeping what we earn.

We don’t want your failed philosophies poisoning the minds of our children, our legislature, or our churches.

STAY AWAY! WE DON’T WANT YOU HERE!

madmonkphotog on May 19, 2009 at 9:28 AM

So if Ahnuld is begging the federal government to back their debt so the state avoids bankruptcy, that essentially means Obama will own California the way he does GM, Chrysler, and the banks, correct?

And like those other institutions, our tax dollars will be used to bail out California and its irresponsible, incompetent politicians.

Man, if you thought the red state/blue state tension was high before, wait til the former are forced to foot the bill for the latter.

Doughboy on May 19, 2009 at 9:29 AM

I suggest we make a two state sollution. The east Bank and the West bank. New York and california separate from the other states. Test it here and ignore Israel.
The economists in those two states are so stupid. If they have the highest taxes, their claims are they should have the largest surplus. It doesn’t work that way. You can’t tax yourself into prosperity.

seven on May 19, 2009 at 9:24 AM

Mitch Daniels is right. He talked about so-called “climate change” in his WSJ article. Easily could extend to Cali bailouts.

The largest scientific and economic questions are being addressed by others, so I will confine myself to reporting about how all this looks from the receiving end of the taxes, restrictions and mandates Congress is now proposing.

Quite simply, it looks like imperialism. This bill would impose enormous taxes and restrictions on free commerce by wealthy but faltering powers — California, Massachusetts and New York — seeking to exploit politically weaker colonies in order to prop up their own decaying economies. Because proceeds from their new taxes, levied mostly on us, will be spent on their social programs while negatively impacting our economy, we Hoosiers decline to submit meekly.

Our president has commendably committed himself to “government that works.” But his imperial climate-change policy is government that cannot work, and we humble colonials out here in the provinces have no choice but to petition for relief from the Crown’s impositions.

Dr.Cwac.Cwac on May 19, 2009 at 9:30 AM

NEXT?

State receives bailout money and we know what is next. It is no longer a “state” just part of the GOVERNMENT TAKE-OVER.

stenwin77 on May 19, 2009 at 8:48 AM
Does that mean we’re down to 49 states?

Dr.Cwac.Cwac on May 19, 2009 at 8:50 AM

Actually, in Obama’s world, I believe we’re down to 56 states.

stenwin77 on May 19, 2009 at 9:32 AM

I keep wondering how much California would save if we just started charging Mexicans for everything they use and get for free now.

NahnCee on May 19, 2009 at 9:32 AM

Well done Karl!

Lest people be left with the wrong impression of the premium CA needs to pay it’s bond holders:

Bloomberg has been tracking the extra yield that California must offer bond investors on 10 year bonds, compared with top-rated municipal issuers. The spread has narrowed to 121 basis points from 132 basis points on April 3.

TheBigOldDog on May 19, 2009 at 9:34 AM

stenwin77 on May 19, 2009 at 9:32 AM

You’re a little too slow.

Dr.Cwac.Cwac on May 19, 2009 at 9:40 AM

I’m looking forward to walking across campus this afternoon and doing my civic duty.

Bob's Kid on May 19, 2009 at 9:42 AM

IT seems like yesterday when Arnold was lecturing CA democrats on being girly men and addicted to spending.

jeffn21 on May 19, 2009 at 9:45 AM

Barack will call it an “investment in America’s future” or something and will bail California out.

As for the opposition from some unions, it’s because they fear caps on spending not because they give a flip about high taxes. According to this,(SEIU), a labor group, has a mixed recommendation favoring 1B and 1C, opposing 1A, 1D and 1E, with no position on 1F. The California Democratic Party favors 1B, 1C and 1F but has a neutral stance on the others.

Dr.Cwac.Cwac on May 19, 2009 at 9:19 AM

Thanks for the link. Apparently people can indeed live in Utopia, but only on a very temporary basis.

Buy Danish on May 19, 2009 at 9:53 AM

madmonkphotog on May 19, 2009 at 9:28 AM

I agree.
Look what they did to Austin in the early 90′s.

TexasJew on May 19, 2009 at 9:55 AM

This is another way that we’ve broken the signalling function of the credit markets, which no longer provide clear indications of expected economic performance thanks to the numerous and varied government interventions.

This is not reported on enough. If you want to understand why the market doesn’t match reality, and another drop is coming, read no further.

Vashta.Nerada on May 19, 2009 at 9:56 AM

What’s next?

Thats quite simple. People always over complicate these things. The people of California need to fire all their elected officials and eliminate all spending until they pay off their debt, just like you and I would have to do.

They need to find every non essential government job and fire the person performing it and they need someone outside the system to do that. No hacks.

They must end all state services, except short term unemployment. You don’t work, you don’t eat. The illegals helping bankrupt them must go.

The list is longer, but you get the idea.

dogsoldier on May 19, 2009 at 9:59 AM

Arnold (and other California liberals) is like a little kid that spent his (and his friends) lunch money on nothing but candy and toys. Then he rubs some mud on his face and pan handles door-to-door. While dragging his bag full of candy and toys he sobs a sad tale of how he and numberous other children do not have money for their lunches.

shick on May 19, 2009 at 9:59 AM

We’d say that the market is probably also pricing in the possibility that Barney Frank will get his way and we’ll have a federal backstop of all muni debt soon enough.

Oh no…

Denninger on that horrid legislation:

So what is this really about? Let’s be clear: It is about The Federal Government attempting to finalize the full federalization of every state in the union, removing any and all remaining sovereignty.

This sort of action is a blatant and outrageous attempt to rewrite The Constitution without actually doing so, by making the states subservient to The Federal Government’s demands under threat of having their heroin supply interrupted.
[...]
The Federal Government must not be allowed to insert its talons into each and every state’s funding mechanisms.

If it does, we will no longer be a union of states; the separation of states and their governments will quite literally disappear, and our nation will have been irretrievably damaged, no longer conforming to The Constitution as set forth by The Founders more than 200 years ago.

Rae on May 19, 2009 at 10:02 AM

I remember fondly when Ahnold said in his debate that his oppositions tax plan was so big he could drive his”Hummer” through it. Hey Ahnold when you’re standing behind Obama today telling us we have to drive those little clown cars that get 50 miles to the gallon or something, are you driving there in your Hummer?

sandee on May 19, 2009 at 10:03 AM

Remember this:
Public employees pay no tax, they just skim.
If every person in CA was a state employees, they’ed be no real wealth producers to pay the salaries.

Fed, state, county and local employees roles must be cut down to the bare minimum.

All money for “no work” food stamps,welfare must cease.

All elected officials must have term limits limit.

TheSitRep on May 19, 2009 at 10:04 AM

What’s next?

IDK

Say…

Skynet becomes self aware?

Good, then Skynet can balance the budget in California…

I R A Darth Aggie on May 19, 2009 at 10:05 AM

Shut down America. (It worked for Gandhi against the British.)

JiangxiDad on May 19, 2009 at 9:13 AM

The British had a conscience.

MarkTheGreat on May 19, 2009 at 10:11 AM

I’m red and living in Cali. It is rather sad to watch how the libs batter this old girl. Eventually, I will move on. You texans that think so highly of yourselves, just remember Cali is only what the rest of the country will look like in about 10 years.

Oh sorry, gotta get to work…if I can only find where I misplaced my keys to the scooter.

jbh45 on May 19, 2009 at 10:11 AM

I’m red and living in Cali. It is rather sad to watch how the libs batter this old girl. Eventually, I will move on. You texans that think so highly of yourselves, just remember Cali is only what the rest of the country will look like in about 10 years.

jbh45 on May 19, 2009 at 10:11 AM

Most of the country might resemble California, but never Texas. Too many proud conservatives down here, many of whom own guns.

Doughboy on May 19, 2009 at 10:13 AM

There won’t be enough revenue for prisons.

roninacreage on May 19, 2009 at 9:18 AM

Expect the return of prison labor.

MarkTheGreat on May 19, 2009 at 10:14 AM

Got a good idea for savings…..

Maybe they could shut down the social justice organic school lunch program in Berkeley.

Jussayin……

(If you can get past the first 90 seconds, you are a better person than I am.)

Dr.Cwac.Cwac on May 19, 2009 at 10:16 AM

I’m red and living in Cali. It is rather sad to watch how the libs batter this old girl. Eventually, I will move on. You texans that think so highly of yourselves, just remember Cali is only what the rest of the country will look like in about 10 years.

It’s not so much that we think highly of ourselves, but more that Texas is a nice place to live is so many ways. Many Texans hope that the state doesn’t get f’d up by the waves of ex-Californians looking for a redux of the dismal, shameful destruction of what was once the best place on the face of the planet.

mr.blacksheep on May 19, 2009 at 10:19 AM

live is so = live in so

mr.blacksheep on May 19, 2009 at 10:20 AM

This has been going on for years yet the people in these states continue to vote these liberal idiots back into office.

Baxter Greene on May 19, 2009 at 9:21 AM

Then the idiots that fled those states forget why they fled & start turning their newly adopted home into the political pesthole they just left.
I watched it happen in WA. It happened in CO a while ago & also MT, to name a few.
I really think this urban living is de-evolving people.
No one actually thinks about what it takes to give them shelter, food, clothing, transportation, modern amenities etc.
These are people who think their food just comes from the grocery store & their energy comes from somewhere in the frigging sky.
Once the sheeple congregate in the urban areas, they seem to unlearn the principles of common sense.

Badger40 on May 19, 2009 at 10:21 AM

Yep my votes in. Feels good to vote for the first time. I voted against socialism.

FontanaConservative on May 19, 2009 at 10:22 AM

Don’t worry Texas, the CA people who can get out are moving to OR where the CA mess will be replayed shortly.
The CA people would not survive 2 minutes in Texas.

ORconservative on May 19, 2009 at 10:24 AM

Don’t worry Texas, the CA people who can get out are moving to OR where the CA mess will be replayed shortly.
The CA people would not survive 2 minutes in Texas.

ORconservative on May 19, 2009 at 10:24 AM

Dunno. A number of Californians live here in my neighborhood north of DFW. For the most part, they seem to be fairly conservative, gun-totin’ folks, but there’s no question that the state is turning slightly purple.

We can only hope that the state of CA reaps what it has sown in such full and vivid horror that the rest of the nation wakes up. But I’m not betting on it. Eastern European states are still reeling from the destruction of their experiment with totalitarianism, but the man in the street just goes along with the explanation that “they didn’t do it right.” Nobody is reporting on the complete $#!+hole South Africa has become since the overthrow of their evil government — life is now so much worse for everyone there.

Nope, we don’t learn.

mr.blacksheep on May 19, 2009 at 10:42 AM

If the rest of the country wants to see what they’ll look like after Obama and Company get done, all they have to do is look at Kalifornia. The Democrats have been in control for years and have spent us into a hole. They then blame everyone but themselves. One of the biggest mistakes ever made was allowing a full time legislature. We never had a budget problem until we got full time legislators with a lot of “free” time on their hands to think up new ways to spend money. As for Arnie, he can kiss off any idea of running for US Senator so that he can sit as an equal at the Kennedy table.

GarandFan on May 19, 2009 at 10:48 AM

I’ve said this before, and as a 42 year resident of California I’ll say it again:

$30 billion and then $23 billion short in a $140 billion budget does not a “gap” make. It’s called Sub-Prime Government.

Some ask why I don’t leave. Because this is my state. My family and my friends are here. This is where I am invested, it is the place I choose to make my life.

This was once the land of Reagan. All things are cyclical.

And we will fix it.

juanito on May 19, 2009 at 10:48 AM

And we will fix it.

juanito on May 19, 2009 at 10:48 AM

Praying for you.

mr.blacksheep on May 19, 2009 at 10:50 AM

It’s not so much that we think highly of ourselves, but more that Texas is a nice place to live is so many ways. Many Texans hope that the state doesn’t get f’d up by the waves of ex-Californians looking for a redux of the dismal, shameful destruction of what was once the best place on the face of the planet.

mr.blacksheep on May 19, 2009 at 10:19 AM

Ann Richards and the Democrats, including Lt. Gov. Bob Bullock, tried to impose a state income tax on Texans in the early 1990s (the last time Democrats thought their ideas were in ascendancy). The reaction was so violently negative that not only was the plan rejected, but in order to save their jobs Bullock and the Democrat-controlled Legislature passed a measure requiring that an future income tax creation had to be passed as a constitutional amendment by voters (which allowed Bullock and most of the others to survive the ’94 midterms, before Bob retired in ’98 and the rest were wiped out in the Dems’ Texas midterm massacre).

So Texas has put in some safeguards against people moving in from Blue States because of the tax burden and then demanding changes and more spending to make things more like “home”. The urban areas have gotten bluer in the last two elections, but not enough to offset the suburbs and rural areas, and we’ll see if the continue the shift back to the Democrats now that Obama’s in the White House and the party controls Congress.

jon1979 on May 19, 2009 at 10:53 AM

CALIFORNIA VOTERS PROP (Forensic Audit)

effective after the implementation of this prop, we the people mandate the hiring of a forensic auditor(s) to review all state agencies and programs, the prosecution of those who have stolen, the elimination of all programs and jobs that are not deemed vital to the safety of the general public, a review and adjustment of all compensation plans, pension plans, and to balance the state budget through said measures.

If their is a surplus they will immediately pay off any debt with said surplus and adjust the taxing rate to pay for the new budget. No new tax increases are authorized

(Then I woke up because I knew such an idea had to be a dream and they would tie something like this up in the courts for years)

sargentj on May 19, 2009 at 11:02 AM

(Then I woke up because I knew such an idea had to be a dream and they would tie something like this up in the courts for years)

sargentj on May 19, 2009 at 11:02 AM

Or, you would be become deceased in a routine traffic accident.

BobMbx on May 19, 2009 at 11:05 AM

And we will fix it.

juanito on May 19, 2009 at 10:48 AM

I truly hope so. Bcs fleeing is never the answer.
The CA of my youth wasn’t necessarily a bad place.
Carmichael & Novato, places I called home at one time are unbearable now.
My aunt still lives in Vallejo, but that’s the only family I got living there now but for a cousin in Rancho Cordova.
I haven’t been back to CA since ‘late 94.
I miss CA, but it’s just too crazy to ever consider living there again.
I’m well adjusted now to ND. I pray it doesn’t end up the same way bcs I’m NOT leaving.

Badger40 on May 19, 2009 at 11:07 AM

I’m well adjusted now to ND. I pray it doesn’t end up the same way bcs I’m NOT leaving.

Badger40 on May 19, 2009 at 11:07 AM

Defend it!

mr.blacksheep on May 19, 2009 at 11:13 AM

Then the idiots that fled those states forget why they fled & start turning their newly adopted home into the political pesthole they just left.
I watched it happen in WA. It happened in CO a while ago & also MT, to name a few.
I really think this urban living is de-evolving people.
No one actually thinks about what it takes to give them shelter, food, clothing, transportation, modern amenities etc.
These are people who think their food just comes from the grocery store & their energy comes from somewhere in the frigging sky.
Once the sheeple congregate in the urban areas, they seem to unlearn the principles of common sense.

Badger40 on May 19, 2009 at 10:21 AM

Badger40,

Respectfully, while this argument/debate has been around for quite a while my friend, (i.e. “don’t Californicate Oregon”, etc,), I would submit that it’s a small scale compared to the “regressive diversionaries”, (liberal ideologies for the self described “progressives”), that remain as the “cancer” inside our internal legislature that feeds the beast of socialism.

As GarandFan (on May 19, 2009 at 10:48 AM) mentions above, this democrat controlled government has been in place for far too long, and the responsibility rest on their shoulders.

Perhaps if your “theory” that this mentality is contagious, the shock that the people/citizen voters of California will send to these “idiots in charge” will be the vaccine for more sane decisions in other states. One can only hope this is the case.

Rovin on May 19, 2009 at 11:16 AM

I really wish there was a bigger turnout for this. Don’t people in California want to take the opportunity to tell their legislators to stop passing the bucks already?

Where are all of the tea party folks for this? I mean, many of those measures tie in directly to the things the tea party folks were protesting. Wasted government spending. Tax increases.

hawksruleva on May 19, 2009 at 11:18 AM

Maybe Arnold could bring in Jennifer Granholm as a consultant to help him fix things.

Percy_Peabody on May 19, 2009 at 11:21 AM

hawksruleva on May 19, 2009 at 11:18 AM

As you probably already know, special elections generally provide a turnout that runs less than 50% (or lower) than than a regularly scheduled election. While you’re not seeing the tea party folks out on the ground and in the media, you can be assured that they will be at the polls today when EVERY prop fails, (with the exception of 1F).

Believe me, the message is getting delivered. What these morons do next is anyone’s guess, but this is just the beginning.

Rovin on May 19, 2009 at 11:27 AM

Arnie the classic moderate repub, in fact he is the demo model.

Run conservative and immediately legislate Dem. Big spending, raise taxes grudgingly but raise them, global warmist, cap and trade or whatever is fashionable, biofuels/ethanol, big money for the latest science craze–stem cell in this case.

Basically do whatever it takes to stay in office meanwhile undermine at all times fiscal restraint and small government bias in all legislation. Have lunch with Collins, Snow, Specter and Crist while waving adieus to Huntsman as he carries Obama’s message to China all the while claiming that Hillary’s vast right wing has taken over the party.

Arnie is a disgrace.

patrick neid on May 19, 2009 at 11:31 AM

Texas is already on its way to following Mexifornia. Dallas County voted for ALL DUMOCRATS in the last election. This country is FULL of stupid people who have been taught to pass the tests in school and haven’t learn how to think about anything on their own. They just regurgitate the facts necessary to pass the tests so they can graduate and thus say that they are high school graduates. Some of them can actually read and write, but those who attended public schools can’t think.

TruthToBeTold on May 19, 2009 at 11:33 AM

Please follow Beck and continue the story Carl. There are more states than just California that are on the brink of bankruptcy.

California
New York
New Jersey
Illinois
Massachusettes
Michigan

And a few others that I can’t remember.

The common thread………they are all blue states. Liberal Democrats gone wild. Can you say “The Federal States of America”? How many of these states get bailouts because they “just can’t fail”? And how much power will the Government have over these states once they’re bailed out?

Scarey!

Knucklehead on May 19, 2009 at 11:38 AM

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