California Heading Over Financial Cliff
LOS ANGELES, Oct. 20, 2008 (EIRNS)The rotten budget deal for fiscal year 2008-09 passed last month by California legislators has already broken down, as new figures released reveal there is still a $3 billion shortfall for this year. The shortfall remains despite cuts of over $7.6 billion, mostly in medical care and social service expenditures, due to a continuing, and growing, revenue shortfall. Tax revenue for September was $814 million below estimates, and the shortfalls will grow, as the state's economy is contracting steeply. Official unemployment figures remain at 7.7%, foreclosures continue to increase, and now, trade through the California portsthe one area of growth in 2007is reported to be contracting rapidly.
On top of this, the "balanced budget" which was passed 85 days late, pushed at least a $7 billion shortfall into the next fiscal year, to be covered by a "bridge loan" this year. The idiotic son-of-a-Nazi, former steroid popping Governor Schwarzenegger, said he wasn't worried about that, as he expected growth to "pick up" before the end of the fiscal year! Some legislators are projecting next year's shortfall will surpass the $15 to $20 billion deficit for this year. (The range of the deficit depends on whose set of fraudulent figures is used.)
With the state and national economies collapsing, some Democratic Congressmen refused to go along with Speaker Pelosi and Secretary Paulson on the bailout. An aide to one of those who voted no twice on the $700 billion bailout bills said that Pelosi and the national leadership of the Democratic Party, including Obama, are out of touch with the needs and concerns of Democratic voters. Asked if she expected a change, she said "not until the people squawk louder."