California's new 'fiscal emergency'

Gov. Arnold Schwarzenegger ordered the new Legislature into work on its first day, declaring a fiscal emergency in response to the state's deteriorating finances.

"Without immediate action, our state is headed for a fiscal disaster where everyone will be hurt," Schwarzenegger said at a news conference this afternoon in his Los Angeles office. He urged Californians to press lawmakers to "get off their rigid ideologies."

The state projects a $28-billion deficit by mid-2010, but at the current rate is on track to run out of cash by February or March.

Schwarzenegger called lawmakers back to Sacramento after they adjourned in August to deal with the same set of issues. But that emergency session ended unsuccessfully last Tuesday when a Democratic proposal to cut billions of dollars from schools, healthcare, welfare and other state services and triple vehicle license fees failed to win Republican votes necessary for passage.

Read the rest of the story here.

--Jordan Rau and Patrick McGreevy

Photo: Nick Ut/Associated Press

Comments

[Robert A. Cohen]

A Partial Solution To Debt Is Proven

a "California lottery-bond"

These would perhaps be sold as $50 or $100 (refundable) lottery tickets

however, the player doesn't lose his principal $50 or $100, but gets a chance at a cash prize for his trouble

it is modeled after the BRITISH PREMIUM BOND which has existed since 1954

the Fed &/or State uses the "float" after paying out a few "winning number" ticket-bonds

The whole thing is a no brainer

It has apparently been "suppressed" by the main street banking & Wall Street
establishments, and one may guess why by just thinking these boogers despise rational "competition"

actually proven valid in several countries:

Britain, Cyprus, Denmark, Mainland China (I'm not making this nor anything else up)

I've been touting it (unsuccessfully) for over half my life, and I'm now 64 years of age

Jimmy Carter's assistant Treasury secretary, a Mr. Altman, told me in so many words it is too much hassle, while this was before the present computerized everything era

An 11 year old puter savvy kid could operate it, but not our State & Federal govts, come on, people

When the Depression II hits (G-d Forbid), I'll know that at least I ran for my State of Georgia legislature 3 times, and was duly sloughed-off by the
usual politicos, including Governor Zell Miller circa 1989

[John]

JK Writes:
As we see more and more private industries cut back on health care coverage, what the state and local governments need is to share in the downgrading all others in society are facing. no longer can we give government (yes police, fire, teachers, city workers) "defined benefits" retirement packages. we are all tired of rising taxes to pay these golden parachutes that have no limits.

I work for the county and I do get a retirement package in the way of PERS. In order to get my 2% retirement per year of work I must pay out 10% of my salary every month into PERS. So in order to get the "Golden Parachute" you talk about I would need to work at my job and pay 10% of my salary for 50 years in order to get 100% of my pay in retirement. Kind of like Social Security, which you have. If I want any more I must open a 401k or get an IRA. My Medical goes up every year, just like you, I pay $600 per month in premiums for a single male. I would have to say that at least 95% of the government workers in California have to do the same. The ones that don't are in Management, in Government such as the Governor, Congressmen etc, or Prison Guards. So with your way of thinking Social Security Retirement is a "Golden Parachute" also, so let’s quit paying those people too.

[jk]

We should never have to steal from school budgets or aid to the needy to fund crime and prisons. what the state/nation needs is a new constitutional qualifier "non-contestable guilty". criminals (like slow speed auto pursuits waving to homeboys, or night stalker caught in the commission of a crime) get work experience, incarceration from public life, and pay their own housing costs by being sent stateside or even overseas to work as a factory worker. there is no 1 call per week, free weight room, unlimited tv time, etc. there would never be a question of early release or burden on society to house them and the original arresting cops would never feel compelled to teach them a lesson for retaliation that the broken justice system would just turn them out with a slap on the wrist.

As we see more and more private industries cut back on health care coverage, what the state and local governments need is to share in the downgrading all others in society are facing. no longer can we give government (yes police, fire, teachers, city workers) "defined benefits" retirement packages. we are all tired of rising taxes to pay these golden parachutes that have no limits. It is time they revert to the norms of society also and start to see diminished benefits also to give the taxed public some relief.

[Tim_CA]

W.W. States...."Get real. Those people who write on the blog that California has one of the highest tax rates of all the states are not telling the truth."

Typical uber-partisan Lib.....he doesn't let the facts get in the way of his argument!

Well sweetheart...according to The Tax Foundation - A non partisan consumer watchdog group founded in 1937:

1. "Estimated at 10.5% of income, California's state/local tax burden percentage stands at 6th highest nationally, above the national average of 9.7%.

2. California ranks 47th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.

3. With six official brackets (and an unofficial bracket for those earning over $1,000,000) and a top rate of 9.3 percent (and an unofficial top rate of 10.3% for millionaires), California's individual income tax has the third-highest rate and one of the most highly progressive structures in the nation.

4. California's Corporate Income Tax Rate is the Highest in the Wes.t
Corporations looking to relocate, or even establish, a business in the West may shy away from California, as the state's 8.84% flat rate is the highest corporate tax rate in the West. Nationally, only nine states have a higher top corporate tax rate than California.

5. California's Sales Tax Rate Exceeds National Median; Gas Tax Highest in Nation. California levies a 7.25% general sales or use tax on consumers, which is above than the national median of 5.4% and local governments are permitted to another 1.5%. State and local governments combined collected $1,362 per capita in general sales taxes in 2005, which ranks 14th highest nationally. California's statewide gasoline tax stands at 45.5 cents per gallon and is the highest in the nation,

Well, W.W. The moral of the story is, just because you say it (or more likely, your masters at Move.On tell you to say it) doesn't make it true. How about thinking for yourself and doing a little research before you lip off?

CUT SPENDING NOW!

Aigned an informed INDEPENDENT.

[Norm]

I lived in CA for 40 years and had a business there. At the first opportunity I ran for the exit and now I live in Florida where there is no income tax. I've been to the offices in Sacramento and I've looked into budgets for education. Education is a big rathole and very bad in quality. CA was spending $250,000 per classroom per year with terrible results. Probably its more now. The colleges waste money like there is no tomorrow. UC has expanded way beyond its charter and established unneeded campuses like Merced. Government employee political influence is dreadful and golden parachute retirement for government employees is a huge fiscal time bomb. State bankruptcy anyone?

[Andrew]

The 2/3's majority rule for getting the budget passed has to be done away with. It should just be simple majority. Otherwise, it's always going to be a political hostage crisis with fancy accounting tricks and ideological grandstanding.

[Craig Mentaz]

Raise taxes? How long are they going to continue under this assumption that the best and brightest (and highest wage earners) are going to continue to be frogs in a gradually boiling pot? The frogs have been jumping out for years, and an avalanche may soon follow. California has fleeced its tech industry for years.. do you really think the smartest people are so stupid as to not be looking around at other states? It's mind boggling that they assume everyone wants the same socialists nonsense that they do. California has had tech advantages in the past, but when so many up and coming tech kids (with no home tying them down) see this ridiculous tax burden (and that's about half of what we talk about), other states look more and more rosey all the time.

[W. W.]

I find it amazing that Californians don't realize that they are one of the few states that don't tax estate taxes. Here we have millions of super super wealthy people who pass on their estate without paying one cent back to the US. Think of all the Hollywood stars who really owe the state at least a liittle dribble of what they leave behind. And yet the state gets nothng from them. I inherited a small estate of $350,000 in a midwestern state. I had to pay $25,000 to the state. If I had owed 350 million in California, I still would not have had to pay anything. Go figure! Let's do something about this!

[W. W.]

Get real. Those people who write on the blog that California has one of the highest tax rates of all the states are not telling the truth. California has no "death" taxes which makes it one of the lowest tax states to begin with.

[John]

I work for a County Office of Ed and even though California is laying off teachers, I still write Millions of dollars in warrants a week for new school construction. WHY? I also write Millions of dollars a week to our Disability Insurance provider, who I believe should be audited. This is just one county office, multiply this by all the county offices in the state.

We haven't seen raises in over 2 years and our state workers are getting 10%cuts in their salaries. The only state workers other than our state assembly voting themselves raises every year, are the prison guards.

Then our welfare system overlaps our food stamp program which overlaps the school lunch programs. We pay three times for welfare children's breakfast, lunch, and dinner (B/L/D). That means we give welfare payments that take in to account B/L/D, then we give out food stamps to the same people to cover (B/L/D), then they get free B/L/and afternoon snack at school. If we cut out the duplication or overlapping social programs, maybe we would save a couple bucks.

[Tim_CA]

We're doomed....we've got uninformed uber-partisan idiots like Kyle Samuals above BLAMING the very people who are trying to straighten out the mess FOR the mess.

Mr. Samuals, we spend more per pupil than any other state in the union on education and our test scores are in the tank.

Because we refuse to deal with the illegal alien problem, our emergency rooms are closing (after all - these are illegal alien primary care facilities) and those that aren't closed have insufferably long waits (we spend $10 Billion a year to educate and incarcerate illegal aliens).

We are the Highest spending state in the country (per the SacBee for all of you Lib Deniers), and one of the highest taxed states in the nation, yet it's not enough for uninformed goofball partisan hacks like you.

Businesses are leaving the state in droves, Cities are strapped, and our worthless RINO Governor and the Democrats in the legislature want to raise our sales taxes and our car taxes during a serious economic downturn (the domino effect will be staggering).

It's Time To Cut....Period. The Republicans in the legislature are heros. How long could you spend beyond your means before you would go bankrupt and lose everything? Why the hell don't you hold the legislature to the same standard of fiscal resposnsibility that you have to deploy?

Mr. Samuals states "Republicans Disgust me". Well sir...Uninformed IDIOTS disgust me, and you're at the top of the list.

Signed - An Informed Independent

[C Mckinney]

Homosexuality is considered an abomination to the LORD GOD! Sodom and Gomorrah were destroyed. Fire, now financial ruin. Could these be signs?

[Tangito]

I can't believe that business and political leaders did not see this near, and perhaps another Great Depression coming. It simply was not that hard to foresee! I saw it coming years ago when property prices were escalating leaps and bounds! Now, the banks, because they did not do due deligence, are running for cover. Oh! Yes! After the BIG Boys ( boys are not men) took billions in greed gobbling (gobble! gobble! ) salaries and bonuses. We clearly had the fox guarding the hen house. It's simple: Greed! Massive Greed!

They're now losing their shirts and the American people their dreams.

PIGS!

[Seth]

Ang, that doesn't sound logical as you have to remember California has the third highest GDP in the world and that is compared to countries. So I doubt the writers strike was full blow to the system that is California. I don't think 28 billion would account for SAG.

[Geoff]

11% top rate? Krikey!!

The problem is spending. Not that you haven't crushed your citizens with enough taxes yet.

[Dr. Dean]

I'll believe they really have a problem when one of the Democrats suggests rescinding in-state tuition for illegal aliens...

[Josh Reeves]

1. Don't cut from Schools and Healthcare (that will cost later). Actually, we could use MORE money for the schools. It's an investment, and a good one that pays very well.
2. Threaten to dump all your US treasury bonds unless you get some of the federal bailout money.
3. Stop paying retired state and city workers $300K+ per year.
4. Stop giving welfare to anyone making more than the national average (~$50,000.00).
5. Stop providing services to non-citizens.

[Joel Rossetti]

"Emergency Session" how much extra are lawmakers paid per day? Is it more or less than what they made while arguing over the state budget everyday in extra session?Bet they load up bills with "earthmarks" too.

[Redwood Bob]

Easy solution to Calif problems. Increase ALL alcohol taxes 1000%. Eliminate 50% of all state committies. Increase auto/truck taxes ONLY on those registered within 75 miles of cities with 50K or more population. Ditto with sales taxes. Stop all grants and entitlements to ALL non-profit making entities. (Lock the doors, mothball facilites) Increase personal taxes by 5% for each child for each family or guardian. Charge a 5% penelty for each extra car/truck at each address. Using school enrollment data, track to each parent/guardian and verify income taxes are being paid. Using voter registration data, verify and enforce personal and property taxes are being paid. Charge 5% income taxes on ALL welfare payments. REQUIRE maintenance spending schedules on all school districts and verify spending results. Eliminate all school district postion titles which did not exist before 1950. Eliminate state funded postions which are duplicated by counties or cities. Limit school district employee pay levels and benefits to that allowed by all other State employees. REQUIRE all state funded contracts to projects which will function with little or no maintenance for a minimum of 10 years. Encourage much more volunteer work on state parks, properties and projects and reward volunteers with reduced personal or property taxes. ENCOURAGE and reward ideas to lower state spending. FORGET political affiliations and WORK for saving taxpayer money.

[Tom]

We need a multi-step solution. Cut programs, reduce spending and increase taxes. There is no other way around it, so quit whining and making things worse. A .1% increase in sales tax would be a good start.

[Linda]

Get rid of healthcare?

Yeah, that's going to help.

[blah blah black sheep]

Robert Gray said, "Republicans disgust me ... We are running on empty and they still refuse to raise taxes, even ones that used to exist."

I find this ironic, since it's usually democrats that are trying to lower taxes and increase social welfare programs. Republicans aren't the only ones living in California. CA is known for it's socialist democrats. There may be a Rep leading the band (Arnold), so he gets all the face-time and flak. But, if the drummer, bassist, etc are all not wanting to play along, then the band leader can't do anything. Arnold alone didn't cause CA to turn into a financial nightmare, CA caused CA to turn into a financial nightmare. All the CA residents need to step up and take responsibility.

[Glenn]

Any person who says a particular party Disgusts them is very ignorant. Both parties got us into this mess. The Democrats don’t want to cut their social programs even though most of them overlap each other and the Republicans don’t want to raise taxes even though, because of inflation, we have to sometimes. Thank God the Re-Districting measure passed so we can get this state straightened out, right :-P.
I think one of the main problems with this state and this country is that each party HATES the other, (thanks Cable News), or whatever idea the other party comes up with has to be bad no matter what it is.

[Pavel Brodny]

Sure,… if Arnold allows drilling some oil around Santa Barbara, the ‘fiscal emergency’ can be solved instantly, without any cats in welfare, healthcare.. … Oil companies offered generous money for licensing,… How long it takes until these CA morons-celebrities will recognize other as their own interests ??

[Journe]

Isn't there a way to cut some benefits that our legislative people receive?
Such as gasoline, pay their own registrations...how about cutting their darn health benefits...NOT MINE!

Why is it that everytime a state or Fed needs money, they go after the elderly, disabled or poor? I find that pathetic.

Everyone needs to be affected equally and stop hurting education and health.
Maybe sell California on Ebay? Someone may make a bid

[ElizabettaC]

We need to stop giving money away to welfare recipients who could work but don't. And start taxing churches! That's right - look how much money that would bring in! And, if people receive government assistance of any kind, they should have to give something in return - like a certain number of work hours per week. And, why not get rid of the state income tax while bumping up the sales tax about 10% - this way the state wouldn't have to pay people to keep track of income taxes and audit people. Anyone who spent money would be supporting the state government. Then, add an additional 5% tax on non-essential items such as perfume, make-up, alcohol, cigarettes, junk food. And lastly, make government employees actually WORK for their salaries. I think everyone is sick of waiting for rude government employees whenever they go to the court house, DMV, or post office.

[Ron Sampson]

Step 1: Find a way to make the illegal asian and latin immigrants pay taxes- they've overtaken California & many are living there tax free (cash economy);
Step 2: Revise Prop. 13- adjust the tax value for residential properties (taxed 1% upon) every ten years (vs. never) & for commercial properties, every 2 years.
Problem solved.

[Jillian]

Gov. Schwarzenegger, your position on marijuana legalization is well known. However you are faced with an unprecedented fiscal crisis.

It is required of you to take all possible steps to ensure California does not run out of money. To fail in this endeavor would amount to severe human suffering.

For this reason you must take immediate steps to have marijuana reclassified to the same status as alcohol. The taxes that California will take in from legal marijuana sales will go a long way to meet the budgetary deficit. Furthermore, the savings from ending the arrests of those possessing marijuana will also greatly contribute to fixing the fiscal problem.

The specifics of the plan could be:
1. The personal use of marijuana by adults in the privacy of their own home and in licensed establishments ("coffeeshops") will be legal.
2. The production and sale of marijuana by licensed businesses in accordance with all relevant regulations will be legal and taxed.
3. The personal production of marijuana for personal use will be legal and untaxed, in exactly the same way the production of homebrew is legal today.
At the same time, unlicensed production and sale, and the consumption of marijuana by minors, will remain illegal and continue to be subject to enforcement by the DEA and local police.

Good luck Governor, ridding California of drug dealers and rectifying the fiscal crisis without causing undue pain to your constituents will be remembered as a humane and astute achievement.

[Glenn]

I think it was more that the over inflation of housing over the past few years gave us a boon of extra tax dollars and instead of saving it for the predicted deflation of the housing industry and potential increases in foreclosures , the DEMOCRATS said " WooHoo, lookie here extra money to create new social programs with". Now that the money isn't there to support these programs, and of course we can't cut them because people can't live without them now.
What we need to do is cut every program that was due to that extra revenue. Quit letting illegal aliens use our medical and make every person that walked away from their mortages just because they owed more than their house was worth, continue to pay the property tax until the house is sold.

[powinca]

Kyle, you are an idiot. Taxes in California are among the highest in the nation already and businesses are fleeing to Arizona, Oregon, Utah, Washington, and overseas. 11% state income taxes on top of high property taxes, gas taxes, sales taxes, and federal taxes is nothing short of confiscatory.

Raising taxes in a recession is about the stupidest thing a government could possibly do. But you aren't an economist, are you? I am. The state could have set aside a rainy day fund during the booms. Instead, the legislature chose to SPEND EVERY DIME.

Other than government, education and healthcare are the strongest sectors of job growth in the California economy. Healthcare spending is strong because baby-boomers are demanding more resources.

Nearly every high-quality peer-reviewed paper on education economics has shown that educational outputs do NOT depend on education inputs, i.e. spending. CA ranks a little below average in per pupil spending, but education isn't poor quality because of lack of funding. Classrooms are crowded with kids of ILLEGAL ALIENS who don't speak English, distracting teachers from their mission. Education is poor because of greedy, unqualified teachers, low expectations for students, poor discipline, and lack of parental involvement. Private schools do far better with far less. That's why the majority of public school teachers send their kids to PRIVATE schools. Cut out all the multicultural nonsense and teach math, ENGLISH, science, and history.

This state's budget is busted because of ENTITLEMENT PROGRAMS and wasteful spending on leftist social engineering projects. Cutting the budget is the solution, not raising taxes!

BTW, the state legislature is dominated by DEMOCRATS and has been for many years, so blaming Republicans for this mess is nothing short of Orwellian doublethink. Arnold tried to reign in spending several years ago and liberal voters shot it down at the behest of special interest groups.

What part of balanced budget do you not understand?

You liberals OWN this problem, baby!

[Educator 707]

It is time to tax RELIGION! Billions of dollars a year are untaxed. Religious organizations, churches, TV ministries, mail solicitations, etc. siphon off billions in untaxed dollars a year. They operate like businesses. They need to be taxed! Let's start a dialog about this.

[bl33b]

http://www.carepublic.com/news.html?news_id=202&start=&category_id=&parent_id=&arcyear=&arcmonth

just look at the link ya goofy libs and see how much could be cut from your state budget and stop blaming republicans for the dumb overspending of your democrats :D

[brian M]

that's what we get with a union loving, tax and spend state gov run by dems for the most part

we spend 10K/child on education and we are near the bottom of the nation in performance.....teachers unions, 2 year tenure and no pay for performance...dumb.......we don't need more money....we need to run gov like a biz

[mallarde]

Our State is facing the consequences of its absorption of millions and millions of poor and uneducated people from Latin America and beyond.

Poor illegals make up a substantial portion of the population. Either raise taxes on the wealthy -- if that does not drive them to other states -- or continue to allow public services to degrade.

How maddening that the State continues down this death spiral and so few talk about what is occurring right before their eyes.

[Rob]

California already has one of the highest tax burdens of any State. Ya, I think they should raise taxes. Makes perfect sense--IF YOU ARE IN GOVERNMENT but not to anyone else.

If they would get over their sympathetic stance to support MILLIONS of illegal aliens free of charge they might have a chance to survive. Instead of addressing the real problem though, they will put a bandaid on it by raising taxes on the people who already pay them and ignore the people who free load.

Government at its finest. When will people ever learn--the government only "helps" freeloaders. The extract money from everyone else. The more freeloaders we have the worse government gets.

[jeff]

Here is a thought. If immigration was controlled the way it is supposed to be, the vast majority of the people out of work in California would have jobs that are now going to illegals. That would keep a big chunk of the $49 billion that was sent back to mexico last year here in the state. It would relieve overcrowding in our schools and take some of the pressure off our healthcare system. Not to mention food stamps and other government services. Bring on ICE.

[PMC]

Maybe the Hollywood heavy can bail out THEIR home state. They are quick to give to the Polar Bears, countries abroad or anybody else that has jumped on the hot this week bandwagon...
So "stars" who want thie voices heard and feel they can "use their celebrity for the better good"........start giving to your own home state! They need help!

[Mark]

The state spent beyond what came in for a long time. The problem is not income, it is overspending

[Martin]

Democrats discust me. They voted in massive payroll increases for state workers over the years to make the unions happy and get reelected. The spent way beyond the amount of money the state brought in each year, year after year, even in good years they over spent what came in. Think of the state like your household. When income is out of balance with expense you cut spending. It is time the public realizes all those bonds they have been approving actually have to be paid back out of their own pocket. Stop some spending, stop paying for healthcare for illegals, export the illegals that make up 40% of the prison population.

[W. W.]

California has no estate or inheritance tax. Why not tax a $5 million estate? Other states (at least 42 states tax estate and/or inheritance). Most of them start taxing well below 5 million.

[greg bronstien]

What Mr. Universe cant fix the problem?
All of you who voted to recall gray davis - you are stupid.

[PHIL]

THE TIME HAS COME PEOPLE, LEGALIZE GAMBLING IN CALIFORNIA. IT WILL CREATE THOUSANDS OF JOBS AND BILLIONS OF DOLLARS IN REVENUE FOR THE STATE. NEVADA NEEDS TO SHARE THE WEALTH, LOOK AT ALL THE GROWTH THEY HAVE EXPERIENCED IN HOUSING CONSTRUCTION AND CASINO JOBS OVER THE LAST DECADE. DON'T RAISE TAXES ON CALIFORNIONS, ITS ONLY GOING TO CAUSE PEOPLE TO HAVE LESS MONEY TO SPEND ON CONSUMER ITEMS WHICH WILL CAUSE UNEMPLOYMENT TO RISE EVEN MORE DUE TO LAYOFFS FROM RETAILERS AND MANUFACTURES.

[Jack]

Kyle - just in case you didn't see it - "when a Democratic proposal to cut billions of dollars from schools, healthcare, welfare and other state services and triple vehicle license fees failed to win Republican votes necessary for passage." --

It was the Dems that wanted to CUT money from the schools, healthcare and welfare. NOT the Republicans.

[Craig]

Ok, first thing - I am very liberal.....and progressive. That said - I live on the east coast, in the great state of Ma, where we have social program to beat the band. We also have a 5% sales tax and a 5% state income tax, which does a fine job of supporting all these programs.

I have a daughter in California.....and have looked at the taxes - they are very, very high. Fine, high taxes can mean some good services. BUT, there is line somewhere in the sand. Californians cannot have it all.....

I suspect, without looking too far, that state and local employees as well as the teaching profession(s) account for much of the problem. If so, then you must do the same thing Detroit is doing with the Unions...renegotiate...give back, etc.

You have spent and spent and spent, and now you have simply spent too much. You don't fix that problem by more taxes when you are already one of the highest tax states in the USA. You have to cut. Exactly what you cut is a political decision, but cut you must.

[peter]

Other governers will be following Arnold soon.

The Federal Government would be doing the same if the did not have that printing press in the basement

[Erich]

This is really getting out of hand. I live in San Francisco, and I am a democrat. But taxes are getting seriously out of control. 10% income, 10% sales tax, 8.84% corporate tax rate and we still have a budget crisis. Kyle Samuels clearly hasn't had to worry about money for sometime. You can't just tax your way to a budget surplus. Many states manage to do very well with 5% or even no state income taxes, small vehicle fees, but california has one of the highest corporate tax rates in america and one of the highest state income tax rates in america. We need the politicians to stop blindly spending money and live with some real world budgets. If we have to cut some programs, then so be it. Contrary to popular belief, it costs money to have education programs, welfare programs, and healthcare. You can't simply prune the money tree in your backyard to pay for these programs. If you start raising taxes on companies, individuals beyond a certain level there are real consequences.

[SniperAC]

Who said they got rid of the license fee? I still have to pay the $324 so why the h(bomb) would I want the license fee tripled? Its not taxes killing us its over paid Govinators that’s bankrupting us (Just look at the watch on his arm) You know that was not bought with his movie making money (look at T3). Get this fool out of office for once and put someone in office that doesn’t just hand out money. Here’s something take people off of welfare! 80 percent of them are drug addicts and just using the money to keep the drugs flowing (I know this is happening because I know people doing this.) You have to take the silver spoon out of people’s mouths and make them work for their money.

VOTE FOR ME! Unless you’re on welfare then DON'T VOTE AT ALL.

[Rodney]

The budget should be easy to solve by eliminating schools, Hiway Patrol, road and bridge repair, and all state funded programs in Orange County and the Central Valley counties that elect Republicans that insist all government is bad. Charge the Republican farmers the full cost of the water projects. Release the prisoners into Orange County. More often than not, the ones that complain most about taxes and government recieve more than they give.

Schwarzenegger helped create the financial crisis by slashing the car fees and borrowing instead. I'd like to hear Arnold take some repsonsibilty that he insists on other law makers.

[Irisheyes]

I vacationed in CA once, would never waste money there again. With all your social programs and supporting way left issues no wonder money is scarce.

[Bill]

I make over $100,000 a year, am a firm believer in a graduated income tax, and am more than willing to pay higher taxes to maintain services for all Americans. Those of us who are doing well and who are benefiting exponentially from a strong defense, good health care, good education system, and vibrant infrastructure should pay more to support the system that got us where we are.

We all benefit from investing in the future and ensuring that we have good jobs and a strong economy. I am more than willing to pay for government regulation to ensure a level playing field and prevent abuse of our financial system, our political system and our environment.

[Dean Smith--Palm Desert, California---USA]

Hey Arnie,
Hows that 40 Billion stem cell research project working out for you? Any cures found from that? How about the immigrant health care cost savings plans...did any immigrants leave? How much did we save? Where is all the savings from the "cost saving programs" that have been implemented????
Just Wondering.

[Nick]

I'm going to take the presumably very unpopular stance and say that I'm in favor of the rigid ideologies of the Republicans in this case. Let's face facts: California will spend more money than it takes in, no matter how much it takes in. Look at the budget explosion during the housing boom, when the state still ran a deficit. California already has higher property taxes than many (most?) states, one of the highest income tax rates, high fees, high business litigation costs, etc. California has probably the most onerous tax system in the entire country, and we're STILL over-spending by billions.

Anyone proposing raising taxes or fees at this point is insane, and I mean that in the Ben Franklin's definition of insanity sense. No amount of increased taxes/fees will prevent the government from over-spending, period. All it will accomplish is hurting businesses and individuals, and driving more productive people out of California.

People can complain about the lack of compromise all they want, but the fact is there needs to be a hard limit to the tax level, and California is already beyond it. I don't expect California will ever really balance the budget (see axiom about always spending more than they take in), but increasing taxes doesn't help (again, see axiom), and doing so would be idiotic, and display a basic misunderstanding about how California's government operates. Raising taxes would only encourage the wasteful out-of-control spending which created the current problem; it's absolutely wrong, and I applaud the legislators who stand strong against it. If the current legislator-idiots cannot find a way to run the state on the ~$120 billion it takes in, they should be fired.

[Larry linn]

Arnold Schwarzenegger makes Gray Davis look like an economic genius.

[vote]

The Republicans had a choice who to back long ago, Fiscal Conservative Tom McClintock, or popular actor guy Arnold Schwarzenegger. They endorsed celebrity over fiscal conservatism. As a result, California has continued to scream down the railway of fiscal unsustainability.

You get what you vote for.

[Thomas Gray]

Detroit is unsustainable,,,,, no 1, The buying frenzy by people with bad credit is over. The banks made these bad loans,, the union workers built the suv"s and low mile per gallon but profitable cars and trucks with the mony from the banks that issued these bad loans. No mony down,, No credit checks,, No proof of income,, Just sign and drive,, Great job mister banker people auto lobbyist home mortage lenders you bankrupted my entire country.

no 2, The united states has been sucking it's oil mostly from opec and SA for fifty plus years, and no small dayly amount at current levels, these supply output levels are forcast to decline very rapidly as is already true concerning the north sea oil production and mexico's oil production. What this means is cheap oil is unsustainable and what that means is demand for fuel econimy cars will rise for a short time untill everyone understands the use of oil for transportation fuel is unsustainable,

and start building electric vehicals,, 0 to 60 will soon become a joke we will be doing well to "ride" 0 to anywhere, but it will be mostly walk or nothing and thats gonna suck.

no 3, If there were any way to """ throttle union power """ short of disolving the job there may have been some hope for detroit, My home town lewiston maine a major shoe industry FREE hydro energy. thousands of jobs DRIVEN over seas by the unions, mile long four and five or six floor factory buildings stand like ghosts in the city, empty just empty buildings if you don't believe me go and look for yourselves LEWISTON MAINE.

I'am sure many of you people have seen this in other industry's also. years ago unions had a place to better the lives of people but now the demands of unions on mature industry's are so unreasonable they simply collapse and the jobs are lost many times forever.

no 4, Go read no 1. again.

[JJ]

The same guy who called Obama a socialist while campaigning for the McCain-Palin ticket is now telling people to "get off their rigid ideologies?"

[Larry linn]

Didn't he base the recall on the of Gov. Davis because of the same issues that he made worse?

[Russ Miller, Ft. Worth, Tx.]

Quit spending; it is that simple. While California wallows in this self created fiscal mess; they announce plans for a $6 Billion facelift for LAX. Absolutely insane.

[Ang]

Hey Robert.. You don't think maybe the state of the economy or maybe the long LONG writers strike might have had anything to do with the state of CA finances? After all millions of people were out of work for weeks, therefore didn't pay taxes, or purchase anything. In light of that SAG just said they are going to strike so it isn't looking much better for CA, I don't really think ol Arnold had much to do with it.. I think maybe the celebrity babies and writers who make more per project that then avg American makes a year should be forced to work like the rest of us and pay their taxes to CA you know the state 90% of them live in..

[Fish Mango]

There is no easy solution to this major problem facing California. The government is really going to have to tighten their belts. There MUST be major cuts to spending AND increasing of fees. One or the other is not the sole answer to the problem, but a combination of both.

[Joshua]

Here are my two cents,

Arnold has his hands full, but at least he is a politician who admits that he is in financial trouble.

I hate to say this but the American and Politicians need to sacrifice some luxuries in order to make this country strong again.

If we get rid of healthcare and every unnecessary programs that don't work,
And remove over fifty percent of the Federal Government, then we might afford
what we are currently paying in taxes.

America needs to go back to the Gold standard, and disband the Federal Reserve.

We need to go to a flat tax, like Estonia. That way taxes are fair all around, no deductions and nobody complaining about another tax bracket getting the upper hand.

[kyle samuels]

Republicans disgust me. Education, health care are at the minimum. We are running on empty and they still refuse to raise taxes, even ones that used to exist. They want cuts in taxes but never any increases. They've cut the marginal rate from 11% to 9%, gotten rid of the vehicle license fee, effectively bankrupting the State, in their insane starve the beast strategy. This is just stupid. These increases are necessary for maintaining even minimal services. A modern economy needs these investments. They aren't even ready to negotiate. Hell, let the State fail. Spend time recalling these people. Put pressure on the "moderates"

[Robert Gray]

That's what we get for electing a movie star for the most important position in California. Congrats Arnold.