Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-30-2011, 05:54 PM   #41
Thinks s/he gets paid by the post
 
Join Date: Oct 2005
Posts: 4,898
Quote:
Originally Posted by Rustic23 View Post
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.
__________________

__________________
Zoocat is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-30-2011, 06:04 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by califdreamer View Post
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.
__________________

__________________
clifp is offline   Reply With Quote
Old 01-30-2011, 06:05 PM   #43
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
Quote:
Originally Posted by samclem View Post
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).
__________________
eridanus is offline   Reply With Quote
Old 01-30-2011, 06:08 PM   #44
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,670
Gee leave my family out of it
__________________
grasshopper is online now   Reply With Quote
Old 01-30-2011, 06:11 PM   #45
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,147
Quote:
Originally Posted by eridanus View Post
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
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 01-30-2011, 06:16 PM   #46
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by SunsetSail View Post
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...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 01-30-2011, 06:17 PM   #47
Thinks s/he gets paid by the post
 
Join Date: Oct 2005
Posts: 4,898
Quote:
Originally Posted by Gumby View Post
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.
__________________
Zoocat is offline   Reply With Quote
Old 01-30-2011, 06:19 PM   #48
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by Oldbabe View Post
Hawaii deserves every penny though, IMHO, just by virtue of providing a fabulous vacation spot.:rolleyes: Senator Inouye's longevity.
Clarified that a bit.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 01-30-2011, 06:25 PM   #49
Full time employment: Posting here.
 
Join Date: Jan 2006
Posts: 899
Quote:
Originally Posted by Gumby View Post
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.
__________________
mb is offline   Reply With Quote
Old 01-30-2011, 06:27 PM   #50
Thinks s/he gets paid by the post
 
Join Date: Oct 2005
Posts: 4,898
Quote:
Originally Posted by Nords View Post
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.
__________________
Zoocat is offline   Reply With Quote
Old 01-30-2011, 06:35 PM   #51
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Quote:
Originally Posted by Nords View Post
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.
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 01-30-2011, 07:17 PM   #52
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by Nords View Post
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.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 01-30-2011, 07:18 PM   #53
Thinks s/he gets paid by the post
Nodak's Avatar
 
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
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.
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
Nodak is offline   Reply With Quote
Old 01-30-2011, 07:19 PM   #54
Thinks s/he gets paid by the post
 
Join Date: Oct 2005
Posts: 4,898
Quote:
Originally Posted by Rich_in_Tampa View Post
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.
__________________
Zoocat is offline   Reply With Quote
Old 01-30-2011, 07:27 PM   #55
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
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.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 01-30-2011, 08:07 PM   #56
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
Quote:
Originally Posted by Rustic23 View Post
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?

Austin news, sports, weather, Longhorns, business | Statesman.com
__________________
eridanus is offline   Reply With Quote
Old 01-30-2011, 08:34 PM   #57
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by eridanus View Post
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.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 01-30-2011, 09:31 PM   #58
Thinks s/he gets paid by the post
Nodak's Avatar
 
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
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.
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
Nodak is offline   Reply With Quote
Old 01-30-2011, 10:15 PM   #59
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
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
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 01-30-2011, 10:17 PM   #60
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
Quote:
Originally Posted by Nodak View Post
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.
__________________

__________________
eridanus is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi from California!! vndreamer Hi, I am... 5 03-18-2010 10:14 PM
Greetings from California SteveR Life after FIRE 34 08-13-2007 12:53 PM
Baja California free4now Travel Information 10 06-03-2007 01:57 AM
Hello from Northern California Ron G Hi, I am... 9 06-19-2006 12:06 PM
Prop 13 - California riverrat Other topics 0 08-09-2004 01:10 PM

 

 
All times are GMT -6. The time now is 07:14 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.