Saturday, July 7, 2012 – 11:30 a.m.
Broke California is now the new laughingstock of the nation, in addition to being the butt of many cocktail party jokes.
The state that can’t balance it’s own budget is now getting a bullet train.
The out-of-balance state budget is already spending in excess of $5 billion more this year than last.
The state government wants higher taxes.
The state can’t say “no more” to unions.
And now the state is getting a bullet train!
A bullet train being constructed with borrowed money.
In past good years, California voters blindly approved billions of dollars of new bond issues to fund a myriad of projects.
Now California voters are reaping the downside of that mistake.
Many outside of California have to be wondering what the hell is going on in this state.
The democrat-controlled legislature is in full action these days. Yes spending, taxing and ripping money from local governments, while neutered republicans are merely bystanders as this all unfolds. The latest deal between Governor Jerry Brown and the Service Employees International Union (SEIU), the state’s largest union, is a prime example.
SEIU members just agreed to take a 5-percent cut. Whew! What a sacrifice!
It would be a nice gesture, but for the following;
- The cut is for only one year and is restored in twelve months.
- Employees get time off in exchange for the temporary concession. So productivity and service is impacted.
So what happens in a year?
Even if Brown’s tax increase proposal passes with voters in November, which at this point is questionable, the fiscal year 2013-14 budget is immediately, once again, out of balance.
In other words more cuts will be needed.
Even the spiraling pension disaster still has to be dealt with. And the road to a solution on that matter already appears to be a dog and pony show.
Did I say cuts earlier? In a state that can’t find its way out of a paper bag.