Sunday, June 17, 2012 – 10:30 a.m.
It’s interesting to see the reaction from local politicians when it comes to the state cutting away local funding.
The newly-approved smoke and mirrors California budget is actually $5 billion higher than last year.
Yes, the state is still spending more money than it takes in.
Did anyone actually expect the dysfunctional state legislature to really make cuts?
The only difference now? Instead of having republicans and democrats arguing over a balanced budget, it’s now democrats arguing amongst themselves over social services cuts.
What’s totally laughable is the local government response.
We’re going to court, they can’t do this, this is terrible…. blah…blah…blah……
The United States of America is comprised of fifty sovereign states.
The key word here being sovereign.
It’s the state’s and their respective legislatures that call the shots at the end of the day.
Any state can default on it’s obligations. But a state cannot file bankruptcy.
Only state political subdivision’s can file under chapter 9 of the U.S. Bankruptcy Code.
Remember Orange County?
It’s no wonder organized labor wants to make it harder for local governments to file.
It’s really the only way contracts, the hallmark of American business, can be voided.
Remember civics class?
Essentially the way it works is the state government, in order to balance its budget, will pull more and more revenue from counties, cities and special districts in order to pay expenses and service debt.
At the end of the day, just as with redevelopment, local governments will have no choice but to take it on the chin.
Expect more municipal bankruptcies and bond defaults.
That’s just the way it is.
The term fiscal emergency does comes to mind.
By the way, wasn’t civics class in eighth grade?
This state is run by imbeciles. We all know that. Or you would think… but we keep re-electing these people as California swirls the drain.
Stupid is not an exclusive to the members of State Government… Local government is replete with a bumper crop of morons too.
As long as city council elections are for the most part clique driven popularity contests we will never have intelligent legislatures.
Thank you for a well thought out article…. Its great to have others start to climb up on the bandwagon.
Local government has alomg of fat trimming to do. Special Districts are another out-dated entity. With 26 cities formed in past twenty years, the time is long overdue to eliminates special district powers and let cities handle the job. What is left give to the appropiate county depts like roads,regional parks public works. Last director retired with over $245,000 pension, great for high school diploma. Current director earns mlre than Gov, Moonbean.
Meant alot of fat trimming.
Breaking news: You are so right. 245K for a high school job. How about 60K for him and a 30K pension?
Cities and counties need drastic, particularly the L.A. DEPARTMENT OF WATER AND POWER which receives a rubber stamp from the City Council to support some of the largest PENSIONS IN THE WORLD, need to have drastic cuts from the state of California. Measures in San Diego and San Jose in June showed that some of these cities are spending more than 40% of their budgets on PENSIONS. WE SIMPLY CAN NOT AFFORD these pensions!!!