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Old 01-30-2011, 04:54 PM   #41
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We have forgotten the lesson of the ant and the grasshopper. In good times CA spent on just about everything you can think of. Bad times have come and the grasshopper is hungry, and knocking on the ant's door.
I see you are from Texas.
Texas slashes budget to close budget deficit - Jan. 19, 2011

Not fair to just blame California for the spending spree that almost all states indulged in, although I know it's so much fun that some just can't resist throwing stones at beautiful California.
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Old 01-30-2011, 05:04 PM   #42
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Los Angeles Times: California budget balancer - latimes.com

I fiddled around with the budget calculator today. It sure paints a grim picture.

Ended up cutting roughly 91B dollar budget by 10.5B with deep cuts in education and health and human services and increased revenues by 17.8B. Most of the increased revenue was produced by maintaining 9.4B in temporary tax hikes (1% additional sales tax, one quarter point income tax surcharge, etc.) and and setting vehicle license tax to 2% of value of vehicle (4.3B).

Many will argue this didn't cut spending sufficiently. I suggest going into the link and seeing what cuts can be made without raising revenue as much as I did.

I wish every voter in the state had an opportunity to go through this exercise.
I fooled around with the calculator. I think it harder to balance CA's budget than it was the federal budget a couple of years ago.
Los Angeles Times: California budget balancer - latimes.com

As a second (third on my mom's side) generation former Californian it is painful to watch the downward spiral of this once great state. By and large the people of Caliiforniaaa (how do you spell it the way Arnie says it ?) brought this crisis on themselves but continual voting themselves more benefits, hamstring the government ability cut spending, and refusing to raise taxes.
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Old 01-30-2011, 05:05 PM   #43
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I don't think the residents of West Virginia and Kentucky, poor states that nonetheless have budget shortfalls (as a %) much smaller than CA's, will be in a mood to bail out Hollywood, Silicon Valley, Malibu, and San Francisco.
California has long been a net giver of federal tax dollars. West Virginia and Kentucky have long been net receivers.

One has to wonder what would happen if the most egregious net receiver states (Alaska, ND, and WV are perennially near the top) were to stop receiving handouts from the net givers (NJ, California, and Illinois among them).
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Old 01-30-2011, 05:08 PM   #44
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Gee leave my family out of it
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Old 01-30-2011, 05:11 PM   #45
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California has long been a net giver of federal tax dollars. West Virginia and Kentucky have long been net receivers.

One has to wonder what would happen if the most egregious net receiver states (Alaska, ND, and WV are perennially near the top) were to stop receiving handouts from the net givers (NJ, California, and Illinois among them).
Interesting data on this point here: The Tax Foundation - Federal Taxes Paid vs. Federal Spending Received by State, 1981-2005
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Old 01-30-2011, 05:16 PM   #46
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I think Charlie proposed a repeal of the frozen property tax base under prop 13. Or are you referring to something else? I'm always interested in hearing anything he has to say.
I don't think he'd implement any startling innovations. Repeal Prop 13, whack the budget, raise the top few tax brackets.

I wonder what asset California could entice Berkshire to buy for $20B-$30B. Sounds like another opportunity of a lifetime.

Any Californians unhappy with the result could simply emigrate to Texas, where I'm sure REWahoo! would welcome them with open firearms...
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Old 01-30-2011, 05:17 PM   #47
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Very interesting. Thanks, Gumby. Looks like my favorite state, Hawaii, receives the most benefit for taxes paid. Hawaii deserves every penny though, IMHO, just by virtue of providing a fabulous vacation spot. And those states currently in the most difficult financial condition have given the most.
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Old 01-30-2011, 05:19 PM   #48
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Hawaii deserves every penny though, IMHO, just by virtue of providing a fabulous vacation spot.:rolleyes: Senator Inouye's longevity.
Clarified that a bit.
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Old 01-30-2011, 05:25 PM   #49
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I knew that CA sent a lot more to the Feds than they received but if I'm reading this right it is about $47B/year. (Is this right?)

I think that the budget deficit is about $26B.

Ergo, all we have to do is stopping sending our money to those spendthrifts in WV and KY and we'll have a multi-billion $ surplus.
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Old 01-30-2011, 05:27 PM   #50
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I don't think he'd implement any startling innovations. Repeal Prop 13, whack the budget, raise the top few tax brackets.

I wonder what asset California could entice Berkshire to buy for $20B-$30B. Sounds like another opportunity of a lifetime.

Any Californians unhappy with the result could simply emigrate to Texas, where I'm sure REWahoo! would welcome them with open firearms...
Hmmm. Maybe he'd be interested in a good price on the whole chain of early Calif historic missions? Turn them into hotels? Install pools and hire beautiful "bar maids/men" to serve drinks and provide massages. Or maybe that idea is too hedonistic for Berkshire. Maybe the Chinese would be interested and would like to install a casino in the lobbies of the missions.
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Old 01-30-2011, 05:35 PM   #51
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I wonder what asset California could entice Berkshire to buy for $20B-$30B. Sounds like another opportunity of a lifetime.
They will wait for... what was it? Oh, yeah the "tailspin" and be among those picking up the pieces... at a tremendous profit.
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Old 01-30-2011, 06:17 PM   #52
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I wonder what asset California could entice Berkshire to buy for $20B-$30B. Sounds like another opportunity of a lifetime...
Casino gambling. Legalize Mary Jane.
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Old 01-30-2011, 06:18 PM   #53
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I haven't the foggiest notion what will happen to California but after looking at some of the information referenced in this thread I'm glad to be where I am. I know ND is a net receiver of Federal monies, probably due to all the farm programs but the state had a surplus of almost 1 billion dollars the last time I checked.
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Old 01-30-2011, 06:19 PM   #54
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Legalize Mary Jane.
Well, it may happen. It's close to being legalized here in Colorado. There are four dispensaries within walking distance of my condo. The taxes are irresistable to governments.
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Old 01-30-2011, 06:27 PM   #55
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Oldbabe,
The Texas legislature only meets every two years and then only for about six months. They also have about 18 billion in a rainy day fund that they do not intend to spend. They have said they will cover their shortfall with cuts in government, not raise taxes and not tap the rainy day fund. So while Texas does have a deficit currently, they also have the cash to cover it if they so choose. It is also a right to work state and while there is trouble is some of the major cities, Houston to be exact, they are in no way comparable to CA when it comes to run away spending.

*my information is off the top of my head, the facts may very slightly.
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Old 01-30-2011, 07:07 PM   #56
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They also have about 18 billion in a rainy day fund that they do not intend to spend.
It's $9B so it won't cover the $27B deficit. Gutting spending while not touching the rainy day fund begs the question...what is the rainy day fund exactly for if not to cover costs during economic downturns?

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Old 01-30-2011, 07:34 PM   #57
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One has to wonder what would happen if the most egregious net receiver states . . . were to stop receiving handouts from the net givers . . .
I'd LOVE that. Imagine if the money stayed in the states instead of being redistributed from DC according to who has been naughty or nice. Nothing would do more to re-align political power where it belongs. Or, more radically, imagine if the money stayed with the people who earned it.
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Old 01-30-2011, 08:31 PM   #58
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When looking at the net payer/receiver status of the states remember that you couldn't make a large city out of the entire population of ND or AK (both less than 700,000). I haven't seen any of the payer/receiver statistics that are specified per capita. I suspect they are available but I haven't looked for them.
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Old 01-30-2011, 09:15 PM   #59
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State deficits.
FT.com / Interactive graphics - US state deficits: Minding the gap

Even this does not tell the whole story. While we hear a lot about CA's pension fund problems, it appears they are not in the worst shape

http://finance.yahoo.com/tech-ticker/11-state-pension-funds-that-may-run-of-out-money-535516.html?tickers=^dji,^tnx,^gspc,spy,dia
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Old 01-30-2011, 09:17 PM   #60
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When looking at the net payer/receiver status of the states remember that you couldn't make a large city out of the entire population of ND or AK (both less than 700,000). I haven't seen any of the payer/receiver statistics that are specified per capita. I suspect they are available but I haven't looked for them.
The link that Gumby posted has per capita rankings. Alaska is #1 in Federal Spending Received; North Dakota is #5.
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