California budget crisis

Mish Shedlock rounds up the latest news about the California state budget, and it’s all very bad. Mish claims that California is clearly bankrupt, and the numbers bolster his claim. Lowlights:

  • California currently plans to spend $15 billion more than it will take in this year, and $27 billion more in the following year.

  • On January 14, the state had $3.1 billion in unpaid bills. Three days later, on January 17, this number had increased by $600 million to $3.7 billion.

  • The largest single unpaid bill is for public school construction, $1.2 billion.

  • The state has decided to hold off for thirty days on paying tax refunds, bills for services and products provided to the state government, and relief payments for the blind, aged, and disabled. After thirty days, the state will begin to issue IOUs instead of payments.

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One thought on “California budget crisis

  1. Ack. I live in the Southern San Joaquin Valley of California, and I’ve lately been taking a bury-my-head-in-the-sand approach. :)

    It is my opinion that the governor could solve most of these problems by enforcing immigration laws. So many of the new schools, for instance, are built for the children of illegal aliens and not for children resulting from natural population growth. New streets are built to accomodate traffic in LA, for instance, which was suspiciously lacking when illegal immigrants went on “strike” a couple times last year. This alone won’t solve problems, for my husband and I don’t call this The People’s Republic of California for nothing, but I think it would definitely be huge in terms of making strides toward balancing the budget.

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