STATE: Schwarzenegger orders cuts amid fiscal crisis
By DON THOMPSON - Associated Press | ∞
SACRAMENTO ---- Gov. Arnold Schwarzenegger on Thursday, trying to avoid a "full-blown" financial crisis in California, eliminated thousands of part-time and temporary positions and ordered that up to 200,000 state workers receive the federal minimum wage.
His signing of the executive order had been expected since last week but is a stark illustration of the cash problem facing the nation's most populous state.
Lawmakers have yet to agree on a spending plan a month after the state's fiscal year began, leaving California without the ability to pay contractors, the higher education system and legislative employees.
Democratic and Republican lawmakers remain divided over how to close a $15.2 billion deficit, with Democrats favoring $8.2 billion in new taxes on corporations and the state's wealthiest residents. Republicans want a spending cap and oppose tax increases.
Adding to the fiscal mess has been an unprecedented number of wildfires this year, costing the state far more for emergency response than it had budgeted.
"Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," Schwarzenegger said. "This is not an action I take lightly."
Yet the governor said he is responsible for making sure California has enough money to pay its bills and that the executive order will lead to immediate savings.
The order exempts public safety agencies but will have an immediate effect everywhere else: Hiring, overtime and contracting will be halted, and tens of thousands of employees will feel the squeeze.
It covers 22,000 retired state employees who work under contract, temporary and part-time workers such as those who fill in at the Department of Motor Vehicles, seasonal employees and student assistants. But Schwarzenegger's finance team said of that total, just 10,300 would receive pink slips immediately. The others are workers who might be exempted from the order because they are deemed crucial to public safety.
The order affects the approximately 10,000 state employees in San Diego and Riverside counties. They work at Department of Motor Vehicles offices, highway offices, state parks and beaches, unemployment offices, fish hatcheries and agriculture inspection stations.
Schwarzenegger also cited a 2003 California Supreme Court ruling allowing him to slash the pay of regular full-time employees when the state lacks a budget. By law, those workers must be paid at least the federal minimum wage of $6.55 an hour and would be reimbursed once a budget is approved.
Whether that provision of the order will ever be implemented is in doubt because the state controller, who cuts the checks, has said he will not comply with it.
The administration estimates that immediately terminating the contracts and suspending overtime would save the state as much as $80 million a month. The deferred wages for full-time employees would take several weeks to implement, saving the state anywhere from $300 million to $1 billion a month starting in late August, depending on how many employees are determined to be essential to public safety and would be exempt from the executive order.
Department heads were ordered to develop a list by Friday of exempt employees.
Before he signed the order, Schwarzenegger said he understood the effect it will have on thousands of people and apologized to state employees.
"It is a terrible situation to be in," he said. "I don't think any governor wants to be in this situation."
But the governor also said he was left with no other option, saying the state was running out of cash.
As Schwarzenegger left the news conference to return to his office, a man in the hallway of the Capitol began shouting at him "no, no" and saying the cuts were unfair. He was quickly surrounded by California Highway Patrol officers and taken away.
Officer Keith Troy said the man, who appeared to be college-age, was detained for protesting without a permit and escorted out of the Capitol when officers determined he posed no threat. Troy said he did not have the man's name.
Tiffany Woodruff is among those who will feel the sting immediately.
The 28-year-old is one of four part-time employees at the state Employment Training Panel, which provides training to those who are out of work.
Now, she said Thursday, "I could be unemployed. We're going to receive our pink slips this afternoon."
She said she works as many hours as she can ---- usually 35 to 40 hours a week ---- and takes home about $2,500 a month. It's already hard paying for food, a car and rent, she said, adding that her unemployment benefits would max out at about $1,800.
Woodruff said she and other employees feel like pawns in the budget fight.
"We're just completely upset with having your salary completely abolished because of the inaction of the Legislature and the political inaction here," she said.
Assembly Speaker Karen Bass said she was disappointed with Schwarzenegger's order but said it would not deter legislative leaders from working toward a budget compromise. The Los Angeles Democrat said she hoped they would submit a spending plan to Schwarzenegger "in the next few days."
Assembly Minority Leader Mike Villines, R-Clovis, said Schwarzenegger's move puts more pressure on legislators to pass a budget by mid-August, before the first minimum wage paychecks would go out. He said negotiations remain locked over Democrats' push to raise taxes and Republicans' insistence on long-term budget reforms.
The governor's executive order came under immediate challenge.
State Controller John Chiang, a Democrat, sent a letter to Schwarzenegger on Thursday saying he will defy the order and issue employees their regular paychecks.
He said the governor's executive order was based on "faulty legal and factual premises."
Chiang said the 2003 Supreme Court ruling did not specify the actual amount of the salary his office could pay state employees during a budget impasse.
"Constitutional authority says I get to decide," he said while flanked by union members during a news conference in Los Angeles.
He also said his computers are not set up to pay only the federal minimum wage, which is $1.45 less than California's minimum wage.
The controller and the Republican administration also differ over the state's financial condition. Chiang maintains that California has enough money to meet all its expenses through September.
If it's later determined that California has insufficient money, Chiang said he is authorized to borrow until a budget is approved.
Chiang's refusal to comply sets up a potential legal skirmish between his office and Schwarzenegger's. If the administration decides to sue, Chiang said it would be a waste of taxpayer dollars.
The governor was asked during a news conference whether that was a possibility if the controller refuses to comply with the executive order.
"If that's what it takes," he said. "I'm here to make sure that our state functions, and whatever it takes, I will do it."
Schwarzenegger signed the order Thursday because it's the first day of the August pay period. Most paychecks that would be affected by the minimum wage order would be the one state employees receive in early September.
The largest union representing state employees is planning legal action to block the executive order, said Yvonne Walker, president of Service Employees International Union Local 1000.
She criticized Schwarzenegger for "doing gimmicks and games" instead of concentrating on budget talks.
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Gee in some cases wrote on Jul 31, 2008 12:34 PM:illegal aliens will be making more money than state workers.
Johny On The Spot wrote on Jul 31, 2008 12:47 PM:Controller John Chiang needs to be thrown out on his ear. We have a governor who despite a ridiculously insensitive legislature has been forced into taking measures that will stop the whole state from coming to a halt and this fool goes and defies the mandate.
I feel for Arnold, as he has gotten absolutely zero cooperation from either side of the aisle on this issue, yet it is these very politicians who created this mess in the first place.
All they know how to do is spend spend spend and it is obvious that they feel no responsibility whatsoever about balancing our budget.
It is time the people step up and take notice. We have a good governor but we need to get rid of all the political hacks who are steering this state into financial ruin.
Ridiculous wrote on Jul 31, 2008 12:48 PM:Absurd, Asinine...horrible..saber rattling..power play. I thought better of Arnold than this. (And to the previous blogger, can't you people keep that argument out of stories that have nothing on that topic? Please.)
Fair wrote on Jul 31, 2008 12:59 PM:The right thing for Arnold to do is to lower his salary to federal minimum wage too.
its not wrote on Jul 31, 2008 1:01 PM:Arnold's fault!
Lay them off wrote on Jul 31, 2008 1:01 PM:Our state government is making a mockery of "working for the people". Every year, it seems, this delay happens. Democrats want to spend and raise taxes, Republicans want to cut and hold, if not lower taxes. Here's a fabulous idea. In the future, if the legislation does not pass a budget on time, they should forfeit their pay for the entire year. Poor state employees that have nothing to do with this are going to go home without a job, while these saps are sitting there bickering with each other. Give us tax payers a break and get the darn thing passed.
If there is an actual politician that reads this, could you please submit some kind of bill that will make you all responsible for getting your job done and done on time!!
Frustrated with it all wrote on Jul 31, 2008 1:04 PM:This is clearly politics at its worst. Since most people live paycheck to paycheck, there will certainly be even more foreclosures and higher unemployment figures. The governor says he'll sue the controller's office if John Chiang doesn't comply. How much will he have to pay in legal fees and where will that money come from? The money he'll be "saving" by cutting state employees' wages? Robbing Peter to pay Paul?
Someone tell wrote on Jul 31, 2008 1:18 PM:the village idiot, I mean the Controller, he is BROKE! The state has no money. Wouldn't you think he would know that? Typical Democrat, spend what they don't have then try to force tax increases so they can do it again!
Cut the Teachers wrote on Jul 31, 2008 1:22 PM:Salaries!!
Hush dont tell wrote on Jul 31, 2008 1:25 PM:the state workers about the 99 cent stores, we are trying to keep the cheap prices secret for the locals.
It wont stop wrote on Jul 31, 2008 1:27 PM:It is hard to believe that in the U.S. things like this could happen. Just to imagine that we are in the promised land...when will we get competent leaders?
Patriot wrote on Jul 31, 2008 1:27 PM:As I stated a few days ago, it's a familiar pattern. The Dems pass a massive budget that increases spending that benefits the people who financed their election campaigns (largely the various public employees unions). The GOP refuses to vote for the budget because it requires raising taxes or issuing more bonds to pass the cost on to future taxpayers, something their consituency hates. As the minority party, the GOP lacks the votes to force the Dems to cut spending. Falling shy of a 2/3 majority, the Dems need just a few GOP votes to pass a budget. Without a budget to authorize spending, the state cuts or suspends payments, those on the receiving end protest, and the unions run commercials blaming the heartless GOP until the sufficient number of GOP feel pressured enough to vote for the budget. Because of gerrymandering, each legislator is safe from being voted out of office no matter how disgusted the public is with the process, and the process repeats itself the following year. The howls of protest have begun. We should hear the commercials soon, and in a few weeks we will have another budget.
OBSERVATION wrote on Jul 31, 2008 1:28 PM:SACRAMENTO -- Gov. Arnold Schwarzenegger on Thursday, trying to avoid a "full-blown" financial crisis in California, eliminated 22,000 part-time and temporary positions and ordered that 200,000 state workers receive the federal minimum wage.
KEVIN wrote on Jul 31, 2008 1:44 PM:LEAVE IT TO ARNOLD TO ASSUME HIS MOST NOTABLE ROLE AS "THE TERMINATOR".... WHY AM I NOT SURPRISED AT THIS ACTION??
Raise Taxes wrote on Jul 31, 2008 2:01 PM:Just raise taxes! It isn't tricky; if the state needs more money you need to collect more. Don't fire anyone ever! Just raise taxes and pay people; every single person deserves a high paying job for goodness sakes, it's their right.
To Kevin wrote on Jul 31, 2008 2:07 PM:What you want him to do? The state is broke? Continue to spend what they don't have? The Dems buying of votes has to stop! There is only 2 ways out. Legalize gambling and tax it and/or approve offshore drilling and tax it. Then again hit the rich and corporations with a tax increase like the Dems want and watch them take their jobs and money out of state. It has happened before. Wake up folks!!
esteban wrote on Jul 31, 2008 2:08 PM:Arnold doesnt get paid to be governor. He makes enough from his movie royalties. So by paying him minimum wage youd be giving him a raise. They should pay the senetors minimum wage. That will make them work harder. And thank goodness cops dont have to suffer a paycut.
Concerned One wrote on Jul 31, 2008 2:11 PM:Again, this one is definitely the fault of the Democrats. I will call a spade a spade, and the Republicans are not much better overall, but this one is the fault of a Democratic State Legislature that has been out of control for decades. It's a wonder we have made it this long without imploding. Regards, C-1.
Welcome to wrote on Jul 31, 2008 2:43 PM:NeoCalifornia, where Illegals work and American Citizens can't.
Randy wrote on Jul 31, 2008 2:46 PM:Thanks to Arnold, no one will be harmed by ingesting trans-fats!
Fact Checker wrote on Jul 31, 2008 2:59 PM:There is not enough money coming in to cover the expenses the state has to cover by laws the majority of us wanted (or we would not have voted for them). There is a shortfall of 15 billion dollars. We aren't going to cancel the next school year or open up the prisons or let the state burn up, so the money needs to come from somewhere. Reducing state wages to the Federal minimum wage, as the Governor has ordered, is not going to come close to balancing the budget, so let's stop rubbing our hands with glee here. State employees fight fires, guard dangerous people, provide public health and safety services for all of us. They give up the chance to make more money in the private sector in order to serve the public. They can earn a nice retirement (which they pay into) if they can put up with clowns who hate them for no reason for long enough.
I'm more than a little concerned about the blood lust unleashed in these comments about working people losing jobs or being reduced to the Federal minimum wage. Do that many trust fund babies visit this site? The proposal made by the Democratic members of the legislature was to tax those who can certainly afford it. One less yacht or vacation home can't kill your Masters, guys, so get off it.
eagle wrote on Jul 31, 2008 3:02 PM:Okay
Ridiculous
[-] wrote on Jul 31, 2008 12:48 PM
Your family brings in 3k per month net
You spend
800 on food
800 on transportation
800 on rent/house payment
200 on clothes
200 on entertainment
200 on Grandma/Grandpa
(no money for tobacoo, vacation or booze or any frills for that matter)
Let's see, you've already spent your income for the month. You can either put the frills on a credit card or entertain your family in the backyard/neighborhood playing jarts. What do you do?
Heaven forbid that you should get into a squabble with your neighbor and they sue you for invading their back yard. If that happens then you will have to rely on the rest of the neighbors to back you up. Do your neighbors have your back?
I can tell you that our Government will invite all comers to the neighborhood party, put it on credit and all will have a great time until the creditors come looking for their money from you.
I for one am glad that someone in "our" Government is finally drawing a line in the sand. Where do you cut? Should it be hourly workers? Hell no. Should it be Parks and recreation? Hell no. Should it be the repair of our roadways? Hell no. Should it be $ handed out to the unemployed and unemployable? Hell no. Should it be the outrageous salaries and retirement that all local government employees, teachers and railroad employees recieve? Now we are getting warm. I cannot hardly hold my teehees until the folks that vote for Mr. Obama find out that the "tax increases for the rich" include the not so rich.
Isn't about time that we held all goverment workers accountable for their salaries?
S Jones wrote on Jul 31, 2008 3:06 PM:What's the big deal. Isn't the state minimum wage higher then the federal minimum wage? They can get regular jobs like regular people for minimum wages and be just like the rest of us. $12 - $25 an hour jobs to be rude and inconsiderate to others is what they now have. Why not become human again. Good going Govenor. It is about time someone has the guts to make something happen. As for the State Controller, you might want to look for a new job!
One less yacht wrote on Jul 31, 2008 3:06 PM:No way am I giving up ANY of my yachts Mr. Fat-checker! I'm keeping all my yachts, vacation homes, and other toys; minimum wage is THEIR problem. Let's raise sales tax, tax on cig's, or sell more lottery tickets.
Greg in Oceanside wrote on Jul 31, 2008 3:06 PM:Let's face facts and the realization that the State of California is broke, and it's not Governor Schwarzenegger's fault.
We have thousands of illegal aliens to blame who are getting services and entitlements, all paid for by the taxpayer, whether it's free healthcare, welfare, or social assistance. It's time to cut these free-bees off and restrict who is eligible for state funded resources. Crime is a serious drain on our resources. We have over 173,000 inmates in the California prison system, many of whom are illegal aliens. California schools are in an abysmal state, with a 25 percent dropout rate. Also, California schools spend enormous resources on special programs for children of illegal aliens in order to meet the intent of the No Child Left Behind Act.
Our legislatures are failing miserably, and they need to press the US government to address the provisions of Section 1 of the 14th Amendment regarding citizenship. Babies born to illegal aliens become eligible to receive social welfare benefits once they're born. Who pays for this? We do, the taxpayer!
The time for action is now because our quality of life depends on it. As a hard working, taxpaying citizen I demand that our state government do whatever it takes to keep our quality of life from eroding any further and to restore whatever has been lost due to ineptness on the part of our liberal policies and Democrat implemented legislative give-away programs.
Steve wrote on Jul 31, 2008 3:07 PM:From a former police officer in California. What's the big deal. Isn't the state minimum wage higher then the federal minimum wage? They can get regular jobs like regular people for minimum wages and be just like the rest of us. $12 - $25 an hour jobs to be rude and inconsiderate to others is what they now have. Why not become human again. Good going Govenor. It is about time someone has the guts to make something happen. As for the State Controller, you might want to look for a new job!
ACE wrote on Jul 31, 2008 3:20 PM:It wont stop
[-] wrote on Jul 31, 2008 1:27 PM:
The answer to your question "when will we get competent leaders?" is very simple in my mind. Take a look at this blog, what do you see? You see supporters of the Democratic party and supporters of the Republican party blaming each other for the "mess" we are in. We are in the predicament we are in precisely because of blind faith in demigods called the republican and the democrat party. Sure the Democrats are now in control because the
Republicans screwed up big time. How long do you think it will be before the Dems are in this exact situation? If you guess more than 5 years you are extremely optimistic.
The status quo has got to go. 3rd party vote please, show the powers that be, we aren't that stupid.
Peace
Greg in Oceanside wrote on Jul 31, 2008 3:22 PM:This is getting ridiculous. In true fashion, the Democrats are proposing to tax us even more to make up for the deficit. They're looking to tax businesses, corporations, and the state's wealthiest wage earners. As a corporation or wealthy person, I'd be seriously looking to get out of here as fast as possible. What's this going to do to our business climate? Inspire more companies and corporations to come here and create jobs and opportunities? I don't think so.
Has anyone done the research? The upper 1 percent of taxpayers (those making more than $388,000) already pay just under 40 percent of the taxes in this country. The upper 10 percent (those making more than $108,000) pay just a little over 70 percent of the taxes, and the upper 25 percent (those making $64,000, which is probably most wage earners) pay a little over 86 percent of the taxes. The bottom 50 percent pay just under 3 percent of the taxes. So, we want to penalize hard working wage earners with more taxes? Talk about wealth redistribution, the Democrats are all about it! I guess they want to feel like Robin Hood!
I just hope the voters really think long and hard when election time comes along, and think about who these Democrats really represent; the poor. What about you and me, the hard working, taxpaying citizens?
Wage this wrote on Jul 31, 2008 3:40 PM:these workers are not getting California's minimum wage, they will be getting the Federal's minimum wage.
bogie wrote on Jul 31, 2008 4:20 PM:Greg in Oceanside
[-] wrote on Jul 31, 2008 3:22 PM:
I hope that you can back up your statements. I believe that they are correct but I am not smart/computer/sauve enough to find the real facts.
Dude wrote on Jul 31, 2008 4:22 PM:The state controller told Arnold to pound sand and refused the order.
NCT just give me the by-line :-)
To Fair wrote on Jul 31, 2008 4:33 PM:Arnie doesn't take a salary. He said in the beginning he has enough of his own money.
I do agree with the legislature having their pay docked until they come up with a budget. Why should they get paid and the workers go without.
anotherview wrote on Jul 31, 2008 4:44 PM:This fiscal stunt has two parts. One, the firing of selected state employees; and two, the reduction in pay of selected other state employees. The first part "would save the state about $80 million a month." The second part won't happen due to the certainty of a lawsuit stalling it. Yet, to meet the present state fiscal crisis (which arises from continuous deficit spending), the governor has said, "I'm here to make sure that our state functions, and whatever it takes, I will do it." He of course doesn’t mean it, and his statement rings hollow. After all, a savings of $80 million a month, while real money, looks like a pittance given the $15.2 billion state deficit. If truly serious about reversing the overspending, then the governor would stop the $1 billion annual state reimbursement of hospitals for their giving the illegal aliens free medical care. He would also stop the state social program annually costing the state $400 million for the illegal alien mothers giving birth. He would order all law enforcement agencies statewide to cooperate with federal authorities to identify and detain the illegal aliens for their due deportation. This action alone would surely result in untold savings by lifting the fiscal burdens of the illegal aliens from state and local budgets. Lastly, he would vow never to sign a state budget with even a single dime of deficit spending -- meaning a budget whose spending exceeds revenue. Now, the Democrats want to boost taxes, while the Republicans want a spending cap. By this wording, neither party has foresworn deficit spending. To stop it, the governor must exert a strong fiscal leadership, but he won’t. Hence, in the end, after all the posturing, the stunts, and the political baloney, both parties will again agree to a state budget with deficit spending, and the governor will sign it. The current set of politicians lacks the gumption to cease perpetual state deficit spending.
Banks wrote on Jul 31, 2008 5:03 PM:I'm a state worker and plan on applying for foodstamps come Monday to make sure my 3 kids have enough to eat. So, take from here, take from there, it's all the same.
And for all of you who think state workers have luxurious jobs, think again.
If we had cut the legislators pay 2 months ago our budget would have been on time with ease.
little guy wrote on Jul 31, 2008 5:27 PM:Hit them where it hurts the most - make the legislators fork over money from their campaign funds until the budget is balanced. Maybe THAT will get them motivated. Cutting jobs and forcing people to take less than $7/hour is just plain wrong. These people didn't cause the budget stalemate - why should they be punished? I'm making notes of who in Sacramento isn't pulling their weight and you can bet they won't they my vote!
Patriot wrote on Jul 31, 2008 5:50 PM:Sorry Greg, but these guys have carved out legislative districts with careful attention to the demographics to guarantee each lawmaker reelection. Until the voter can figure out a way to force the districts to be redrawn to be more competitive in an election, these politicians can continue serve their own interests with impunity.
Liza wrote on Jul 31, 2008 5:58 PM:If off shore royalties could go into California bank accounts then start drilling and solve all our problems. I understand off shore oil seeps into the ocean anyway - drilling will control and correct the pollution - Yes or No?
Greg in Oceanside wrote on Jul 31, 2008 5:59 PM:To Bogie, it's fairly easy to find the statistic regarding taxes, and who pays them. Just Google 'who pays taxes' and you can see for yourself. I've done the research and have created a spreadsheet with graphs. You'll be surprised at what you see/read.
The real deal wrote on Jul 31, 2008 6:06 PM:California´s middle class will collapse, lower class will find a way to get by, first class will be richer, and as for our leaders... we will still elect egocentristic people... sad...
Mark in Escondido wrote on Jul 31, 2008 6:29 PM:This really is absurd!! The working people are being hammered here because two sides can't work together for the benifit of all.I say lets put together a initiative that says No(on time) Budget means NO PAY for the State Legislatures period!! This includes no back pay to them either. Let them suffer the effects a their failures instead of the every day working person.
Like California wrote on Jul 31, 2008 7:37 PM:isn't already in a recession!! Now the normal person will not be able to get gas to go to their crappy min wadge job because of our state idiots. The extra tax on our fuel makes it immpossible for the common person to fuel up with out having a stroke, but our state goverment doesn't care. Forclosures are at an all time high, and will get even higher now because of the min wadge, and our state goverment doesn't care. I don't think that it is Arnold who doesn't care. I think that it is everyone else. VOTE OUT SACRAMENTO and start over.
Oh yeah, to the above comment made about the teacher's salaries......you must be a politician
State employee wrote on Jul 31, 2008 8:02 PM:Those who blog in support of Schwarzenegger are just a bunch of clueless republicans. As a state employee, I support Chiang who has our interests at heart. From day one, Schwarzenegger has done nothing but upset his own state employees to include law enforcement, fire fighters, teachers and health care workers. There is a reason why several state employees have "Screw arnold" stickers in their offices. I say go ahead and cut our wages. After all the state employee unions file lawsuits against the state, Schwarzenegger's arrogance will end up putting the state in even more debt.
Diapers wrote on Jul 31, 2008 8:07 PM:I am a licensed nursing professional employed by the state since 1977. I do everything from changing adult diapers to administering medications. I feed the disabled by spoon and gastrostomy tube. I have dedicated my career to taking care of people who require the basics of life to survive. I didn't enter a career of civil service to be played like a political pawn.
saint wrote on Jul 31, 2008 8:45 PM:this situation is truly unfortunate for those who will be affected. I don't think it is (or could ever be) one particular political party fault. American attitudes for years now have been so gluttonous. I think it was only a matter of time before things came to this. I know many people who live paycheck to paycheck and are content living above their means. I lived in Florida for years, where its a RIght to Work State, meaning you can get terminated, and there's no Union to advocate your grievances, there are no pensions either. It doesn't take long to realize that employment is a poker hand.
My solution: Gut the prisons for 12 hrs a day, Chain-gang'em and make'em work the fields (in replace of illegal, undoc'd workers). Now that's a deterrent.
-Let Dying People Die: Stop with the no quality, no brain activity, heart beat preserving therapies that cost a fortune, and reap no rewards.
Terminator 4 The movie: all proceeds go to the California economy:)
To diapers wrote on Jul 31, 2008 8:57 PM:Your union sure plays in political arenas... and you are part of that... so yes you are part of the game...
Andrew wrote on Jul 31, 2008 9:26 PM:RE: "Schwarzenegger signs order. . ." The governor said he would do what ever it takes to save the state. Even Lincoln in the "Civil War" showed more compassion.
to Greg wrote on Jul 31, 2008 10:46 PM:If you do even a little more research on the 16th amendment (taxes) you will find that it never got the 3/4 percent of the states for it to be ratified, rendering it unconstitutional, and also there is no law in the books that states you have to pay income taxes.
So basically taxes are illegal and are being collected by the privately owned Federal Reserve Bank.
So we are all paying good money to a bunch of elitists who decide what to do with our money.
Well Now wrote on Jul 31, 2008 11:40 PM:As much as I agree with the illegal situation -- the hogging of our dollars when they don't deserve it, I have to place the blame squarely on Arnold's shoulders.
Should have left Gray Davis in place.
I agree with one of the comments above, vote third party!
For change, we need to be getting AWAY from the Dems and the GOP's.
Tommy wrote on Aug 1, 2008 3:11 AM:Maybe it's time the Democrats tried "bipartisanship" to end the stalemate.
Tommy wrote on Aug 1, 2008 3:13 AM:How about if the civil servants suggest programs for elimination as a means to balance the budget? They know better than anybody where cuts can be made without interfering with their purpose of serving the public.
Fed up wrote on Aug 1, 2008 6:19 AM:Arnold came to be governor because the public didn't like Davis collecting more money on dmv registrations. Arnold had a special election he lost that the taxpayers paid.(He should have listened to Maria) I think Arnold should pay for that election. I also agree that salaries of the state legislators should be suspended from as an incentive to get the budget enacted by July 1.
Hey you as wrote on Aug 1, 2008 6:27 AM:former government employees want work, go to the day labor sites and wear a sign saying former California employee needs work. I will then hire you above any Illegal Alien.
susan wrote on Aug 1, 2008 6:47 AM:The problem is that the Federal Government mandates that states provide medical coverage to anyone here illegally and they are supposed to reinburse the states. They don't. Add to that the expense of schooling all illegals and providing welfare and you have a deficit. We have the highest state income tax already. We simply have to many people taking and not enough paying. You can change the people in office but the same problem will remain. The only solution is either more taxes or enforcing our laws.
WiseGuy wrote on Aug 1, 2008 7:22 AM:"Ask Not What Your State Can Do For You. Ask What You Can Do For Your State". Arnold either has to raise taxes or cut the budget. Just like at your house. You cannot spend more money than YOU make. Oh YEah, the housing market. YOU do spend more than you make. brilliant. America will be spelled with a " K " soon.
Johny On The Spot wrote on Aug 1, 2008 7:47 AM:Susan is right... the problem stems from mandates made at the federal level.
These idiotic mandates are costing ALL the states billions in healthcare, education and social services for illegals and their families.
If we could find a way to solve this at the federal level, every state in the country would get releif... but there is one problem....
These mandates were really part of rulings made by the federal court system. Those guys are seated for LIFE. You cannot vote them out and you cannot force them to retire, so even if we completely replaced every politician in congress, we would still be getting these liberal rulings from the high federal courts because those guys are not going away any time soon.
Remember when we Calee-forneea citizens overwhelmingly approved the proposition to not pay for illegal alien healthcare. The 9th Circuit Court in San Francisco struck that one down within a week.
So it does not matter what we vote or who we vote for until we find a way to completely replace all these liberal judges who have decided that American is no longer the home of the free, but rather the home of 20 million illegal aliens whom we must all take care of.... WHY?
Because they said so.... that's why!
To Johny on the Spot wrote on Aug 1, 2008 8:17 AM:I agree and when the people are left no recourse, they will fight their government with weapons.
Does anybody know wrote on Aug 1, 2008 8:46 AM:if we are still paying for Illegals and their families? Cuz if we are I am going to stop paying state taxes, and immediately increase my deductions for non existant family members, let them get the money from the Illegals. I will be moving next year or the following out of California, they can find me if they want their taxes.
Concerned One wrote on Aug 1, 2008 9:06 AM:This is good! Maybe out of the chaos some rational decisions will be made. Redistricting is a must. Cut welfare programs to illegals. Stop paying legislators when ever there is a budget shortfall. Send the feds a message, "the buck stops here." And yes, if we could find some middle ground and create a viable third party, maybe, just maybe, we could make it better. Regards, C-1.
Terminate him wrote on Aug 1, 2008 9:34 AM:Time to get rid of Schwarzenegger. His lack of experience and knowledge have become obvious even to most of his fans. Making the most vulnerable employees pay for his screw-up is the last straw. How about replacing him with someone who has a REAL college degree?
Lack of Experience wrote on Aug 1, 2008 10:50 AM:and we want Obama as head of the country?
Bobby wrote on Aug 1, 2008 10:55 AM:We should just get rid of all the politicians... That would be one step in cleaning up california... Then there is one other thing we have to get rid of.... I can't put my thumb on it though....
Lets see wrote on Aug 1, 2008 11:24 AM:either we pay California State Employees or continue to give beneies to the illegals? I say we increase the beneies to the illegals and the California State Employees can move to another state. LA RAZA all the way baby!
Maybe after wrote on Aug 1, 2008 11:48 AM:everything comes crashing down and we all go up in flames, people will say, "Dang! Guess we should have actually done something about the illegal immigration problem after all..."
In the meantime, all of CA's lawmakers should have their fat salaries reduced to minimum wage as well, since they can't seem to do their jobs and work out a budget.
Work together wrote on Aug 1, 2008 1:40 PM:State workers should not have to suffer because lawmakers fail to do their job. California needs to raise money now AND make long term changes. The lawmakers know this but have to continue to play their political games. I'm a republican, but I applaud Chiang's decision to defy Schwarzenegger's game-playing.
NEXT YEAR EVEN WORSE wrote on Aug 1, 2008 1:45 PM:YOU AN'T SEEN NOTHING YET ---JUST WAIT UNTIL NEXT YEAR...REVENUES ARE EVEN LOWER THAN NOW!
SanMarcosVoter wrote on Aug 1, 2008 2:13 PM:I remember years ago we had a so called financial crisis due to then Governor incresing DMV fees. The Republicans started a recall campaign which was going nowhere until Issa put money into then the"Terminator" decided to run. Now our actor governor has got us into a real jam and he wants to fix the problem on the backs of the State workers. I say we recall him. The problem is twofold, not enough revenue and too much spending.
I can remember back into wrote on Aug 1, 2008 2:30 PM:the a960's California has always played this game.
To State Employee wrote on Aug 1, 2008 2:51 PM:It's not Chiang's job to take care of YOUR best interest. He was elected by the citizens and he should have the citizens best interest as a top priority. The fact that he is backed up by the unions is proof positive that he's got his constitutional priorities all our of wack. I'm pretty sure the people that voted for him did not intend to vote for a union puppet. Also, if you haven't noticed, and lot of bloggers are sick of both parties, and this time around, it just happens that he democrats are the ones spending us into poor house. You can't just keep increasing spending forever and taxing people forever, and that should be apparent whether your a dem, a rep, or even a state employee.
Saint you got it wrote on Aug 1, 2008 3:11 PM:Saint has really hit the nail on the head. The politicians are only reflecting the society that is electing them, and if you look around at what is happening in the credit and banking crisis, it's not really that different than what is happening at the state and federal level when it comes to handling finances. Instant gratification, self-centered decision making, spending beyond available means, no self responsibility, blaming others for bad decisions, expecting others to pay for entitlements, expecting to have it all (big house, new car, boats, quads, rv's, vacations), etc. As I recall, the Governator was elected to COMBAT out of control spending, and every time he tries to "get tough" with the legislature, the electorate just caves in and complains. The bottom line is we as a society have really just turned into a bunch of whiny, pathetic, irresponsible, short-sighted, selfish idiots that apparently doesn't even know how to subtract, otherwise the expenses minus income calculation would make it apparent we are going bankrupt at not only the personal level, but at the state and federal level. Unfortunately, I think it's going to get a lot worse before it gets any better. Many, many more will eventually suffer before things come back into balance.
As a California Taxpayer wrote on Aug 1, 2008 3:26 PM:if you want to get sick, go to the State of California's website and check how many agencies your taxes are paying.
State Agencies Directory, shouldn't take you more than 3 hours to see all of the agencies.
Hey an idea wrote on Aug 1, 2008 4:28 PM:How about a measure on the ballot allowing the State of California to print money. All problems solved, they can model it after the Federal Reserve.
Randy wrote on Aug 1, 2008 6:18 PM:Lets ship more of our work to China and hand out more H21B visa's that will fix it.. Dumb Democrats geez Thats what they propose
Drew wrote on Aug 1, 2008 6:39 PM:Offshore drilling can solve the problem.
HEF wrote on Aug 1, 2008 7:55 PM:Hey Arnold, while you're at it, why don't you do something about WELFARE REFORM???? I am referring to AFDCD, Food Stamps, WIC, Medi-Cal, MediCare, etc. Set it up so that any families having their head of household here illegally, would be ineligible to receive benefits. Also, we have absolutely NO CONTROL over these programs! Set it up so that there is a MAXIMUM dollar amount that we will pay these families IRREGARDLESS OF HOW MANY KIDS THEY HAVE!!
I would love to offer my assistance with these changes, and am willing to work for minimum wage. This program is out of control, and I would love to see it cleaned up.
Ex California Native wrote on Aug 2, 2008 9:38 AM:As a 50 year native Californian, I moved out 10 years ago. I seen this budget mess coming. The "Golden State" is not the Golden State anymore and the will of the people in constantly overruled by the courts. Simpley, California will find it extremely difficult balancing the budget by paying health, education, welfare, prisons and every other free benefit to illegal aliens. But...nobody in Sacramento seems to talk about it! Good luck California!
How is it Arnolds fault wrote on Aug 2, 2008 1:34 PM:I've heard this said a number of times, but how is the budget Arnold's fault? Every time he tries to cut something, the legislature just overrides him, and when he went to the public to override them, they didn't support him? He doesn't pass the budget! Even if he line itemed it, I'm sure the legislature would just override it? In my opinion, the electorate blew it on this one. They hired him to clean up the place and reform things, and then they just pulled the rug out from underneath him. Now they're just getting what they asked for: budget chaos and out of control spending!
Patriot wrote on Aug 4, 2008 8:04 AM:Patriot wrote at July 31st 1:24 PM, "The howls of protest have begun. We should hear the commercials soon, and in a few weeks we will have another budget." Like clockwork, the television stations began airing teachers union commercials this weekend, urging viewers to contact specific Republicans in Sacramento (those trying in vain to hold the line on spending, which has run well ahead of population growth, even after adjusting for inflation). Eventually, enough of these Republicans will cave and the unions will get their money.
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