Some "good" news - CA UI benefits will NOT be cut by State Controller's Office

[Porsche-O-Phile]

Got a call back today with regards to this specific question of mine. Apparently the UI fund is a separate entity and not subject to the decisions of the State Controller's Office, so those of us collecting state unemployment will continue to get those payments (for now).

No word on when the state's UI fund is gonna' go under though. And naturally if/when CA goes BK all bets are off insofar as what a court will allow them to shed themselves of or not...

Worrying times, but at least I get to keep living in something other than a car or a cardboard box on the beach... For now anyway.

[Hugh R]

I read the State runs out in two weeks, and they're hoping for a Federal bailout. I also read that a bunch of economists think the economy (stock market) will be about the same in four years. I'm just glad that when I sold the DB4 in 07, that I put the money in CDs. It would have killed me if I had put it in the stock market.

[rnln]

[Porsche-O-Phile]

Sorta 'splains why Nancy Pelosi looked like she was sucking up to Obama so bad at the festivities earlier today.

I really don't think "O-man" has a choice though. If the CA economy goes kaboom, there goes the neighborhood for the entire rest of the country. The USA fails without CA. Guaranteed.

[idontknow]

California, too big to fail!

[Porsche-O-Phile]

Not too big to fail - but definitely too big to have the feds LET it fail. The problem is can the feds hold together this mess long enough to not fail themselves?

The funny thing about this is we could literally fix this crap with two strokes of the pen:

1. Require a balanced budget every year. Period, date-certain, no excuses, no extensions. If the Assembly and/or governor don't pass a balanced budget by a date-certain, they're automatically discharged from office, it gets done by a special voter-elected panel with no possibility of appeal.
2. Limit taxes, fees and other sources of government revenue to some % of total, indexed for inflation y-o-y.

This is kinda' what Props 58 (2004, thanks Arnold) and Prop 13A (1978) have hinted at, but even so, state government finds ways to run deficits and still spend like crazy. Simply insane. Nothing short of a full-fledged taxpayer revolt in this state is going to change things. I doubt it's going to happen either because most folks here just don't care - they're too addicted to the government handouts.

[pwd72s]

Originally Posted by idontknow

California, too big to fail!

Yep...that's why I posted in another thread that State of California General obligation bonds can be considered pretty safe. In the history of bond sales State General Obligation bonds have never failed to pay off.

Can't say the same for all municipal bonds, though...there have been failures in that area.

[Porsche-O-Phile]

Those are specifically listed as things that the State Controller's Office will not touch on their web site. In fact they might even be beyond their scope of authority to mess with and/or not pay out on.

Of course if CA goes BK, then all bets are off and the General Obligation Bonds will likely make for (slightly rough) toilet paper.

[red-beard]

Originally Posted by Porsche-O-Phile

Nothing short of a full-fledged taxpayer revolt in this state is going to change things. I doubt it's going to happen either because most folks here just don't care - they're too addicted to the government handouts.

That is the problem. Voter does not equal taxpayer. What is the percentage of California voters who pay income taxes? Nationally, with the Bush tax cuts, it is now under 50%. I think that is the point of no return.

[jyl]

Damn Bush tax cuts!

Quote de Porsche-O-Phile

Nothing short of a full-fledged taxpayer revolt in this state is going to change things. I doubt it's going to happen either because most folks here just don't care - they're too addicted to the government handouts.

That is the problem. Voter does not equal taxpayer. What is the percentage of California voters who pay income taxes? Nationally, with the Bush tax cuts, it is now under 50%. I think that is the point of no return.