Controller John Chiang sends a letter to government agencies advising them who will not be paid if the state's cash runs out. Also on the list? Californians expecting tax refunds.
By Evan Halper | From the Los Angeles Times
December 31, 2008 -- The failure of lawmakers and the governor thus far to wipe out any of the state's projected nearly $42-billion deficit leaves California only weeks from running out of the cash needed to pay all of its bills. On Tuesday, State Controller John Chiang sent a letter to government agencies advising them of whom the state won't pay if coffers run dry.
Californians may not be so troubled by who is on the top of the list to get IOUs: state lawmakers, who haven't been able to come up with a budget solution that Gov. Arnold Schwarzenegger would sign.
Legislators aren't the only ones who would be stiffed. Any Californians expecting a tax refund from the state would be out of luck until the cash crisis is resolved. Some payments to doctors would also be put on hold, as would some grants to students.
Chiang's office said the state may start issuing the IOUs as soon as Feb. 1.
An $18-billion package of tax hikes and program cuts that Democrats pushed through the Legislature earlier this month would have kept accounts from running dry. But Schwarzenegger said he would not sign that package until it was modified to include more cuts in services, the privatization of government infrastructure projects, and other measures.
1 comment:
Of the money we have seen thrown around thus far let me ask you this, that 168 billion that our country borrowed to give away to us in the form of an "economic stimulus package" ...did it do a darn thing to create jobs or stimulate our economy? NO, nothing. And we borrowed the money from China.
This past year the high cost of gas nearly destroyed our economy and society. More people lost jobs and homes as a direct result of that than any other factor in our history.
Fannie and Freddie continue to get all the blame. Of all the homes I have seen lost in my area SW FL and believe me I have seen many, none were due to an adjustable mortgage. They were due to lack of work.
Families went broke at the pump alone. Then added to that most saw record rate hikes at their utility companies. The high cost of fuel resulted in higher production and shipping costs that were passed on to the consumer, in most cases higher prices for smaller packaging.
Consumers tightened their belts, cut back, went out to eat less or stopped totally. Drove around on tires that needed replacing longer, some even quit buying medicines they really need.Unfortunately cutting back and spending less results in even more layoffs. A real economical catch-22.
And, as we are doing the happy dance around the lower prices at the pumps OPEC is planning to cut production to raise prices. They are even getting Russia in on the cutbacks. Oil is finite. We have used up the easy to get to reserves already. It will run out one day.
We have so much available to us. Solar and Wind are free sources of energy. Of course to get the harnessing process set up is somewhat costly it is still free energy.
It would cost the equivalent of 60 cents per gallon to charge and drive an electric car. The electricity to charge the car could be generated by solar or wind at least in part and in most cases totally.
If all gasoline cars, trucks, and suv’s instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. What a powerful resources we have neglected.
Jeff Wilson has a profound new book out called The Manhattan Project of 2009 Energy Independence Now. http://www.themanhattanprojectof2009.com Powerful, powerful book! I think we need to rethink all these bailouts and stimulus packages. We need to use some of these billions to bail America out of it's dependence on foreign oil. Create clean cheap energy, create millions of badly needed new green collar jobs and get out from under the grip foreign oil has on us. What a win -win situation that would be for America at large
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