Posted By Vicki McClure Davidson on July 1, 2009

IOUs for Hollywood?

California is the state of Los Angeles, San Francisco, Monterey, San José, Hollywood, warm beaches, rare sequoias, rich farm lands, enviable wine production, gorgeous forests and mountains, Disneyland, Fisherman’s Wharf, Knott’s Berry Farm, San Diego Zoo, leading microchip computer innovation, respected universities and science centers, world-class museums, 19 major sports leagues, and now… IOUs are being handed out by the state government. One of the most blessed states in our nation for its climate, geological diversity, and sheer beauty… bankrupt.

Absolutely disgraceful. I was born in California and am mad as hell that my beloved home state, this precious jewel, has been treated so disrespectfully and recklessly by spendthrift liberals and RINOs. It’s a disaster now. And it shouldn’t be, not with all the assets it still has. You wrecked California… wrecked it.

Gov. Schwarzenegger, stop talking about the economy and DO something constructive and intelligent about it. Stop the bleeding NOW.

Stop giving expensive welfare goodies to those 3 million illegal aliens in the state and you’d knock down a huge percentage of that escalating debt (anywhere between 10 and 20 percent of the debt). Strip down a percentage of your bloated numbers of government workers and all their handsome benefits, and another huge rat hole of state money would be plugged up.

But, no, you’re going to give out IOUs. How flaky is that?

Californians, you should all be screaming bloody murder about this. You should be grabbing pitchforks and kerosene lamps and march on the capital. Your state is going down the toilet because of fiscal recklessness by political clowns. And rather than FIX the problem, IOUs will only make it far worse and negatively impact California’s credit rating. As if it isn’t bad enough now.

Reuters: California government declares fiscal emergency over budget
By Jim Christie
July 1, 2009

SAN FRANCISCO (Reuters) – California Gov. Arnold Schwarzenegger on Wednesday declared a fiscal emergency to force lawmakers into a special session to tackle a state budget gap that has widened to $26.3 billion from $24.3 billion after they failed to close it on Tuesday.

Lawmakers debated late into the night Tuesday but could not agree on a plan to balance California’s budget for its new fiscal year, which began early Wednesday morning.

That cleared the way for state officials to suspend payments owed to vendors and local agencies, who instead will get “IOU” notes promising payment.

The notes would mark the first time in 17 years the most populous U.S. state’s government would have to resort to the unusual and dramatic measure — and would follow warnings by Wall Street that the state’s credit ratings may be lowered, which would increase its borrowing costs.

“Though the legislature failed to solve our budget problem yesterday, rest assured that solving the entire deficit remains my first and only priority, and I will not rest until we get it done. I will not be a part of pushing this crisis down the road — the road stops here,” Schwarzenegger said in a statement.

While California lawmakers struggle with budget deadlines nearly every year, this budget fight is taking place amid the state’s worst drop in revenues from personal income taxes since the Great Depression as recession and rising joblessness worsen damage done to the state economy from the housing slump.

Democrats, who control the legislature, could not convince Republicans to either back their plans to tackle the shortfall or make a stopgap effort to ward off the IOUs. The two sides agree on the need for spending cuts, but are split over whether to raise taxes to help fill the gap.

Democrats have pushed for new revenues while Republican lawmakers and Schwarzenegger, also a Republican, have ruled out tax increases. They want deep spending cuts to balance the budget. Democrats say that would slash the state’s safety net for the needy to the bone.

California bonds due in 10 to 30 years traded stronger in the secondary municipal market as it priced in a missed budget deadline, said Municipal Market Data analyst Domenic Vonella.

“We’ve seen Cal GO paper widen for the last three weeks or so … Today things are a few basis points better,” added Parker Colvin, head of municipal securities trading at Stone & Youngberg in San Francisco.

White House spokesman Robert Gibbs said the Obama administration is keeping a close eye on California’s woes. State officials have proposed the U.S. government help with financial aid or by vouching for state debt. “We continue to watch the situation and we’ll see as it develops,” Gibbs said.

In Sacramento, California’s capital, State Treasurer Bill Lockyer’s office is preparing plans to issue short-term debt assuming Washington will not guarantee it.

“We’ve been operating since May under the assumption that there will be no help forthcoming,” said Lockyer spokesman Tom Dresslar. “We did not ask for a bailout, repeat, we did not ask for a bailout. We wanted the federal government to step in and provide a backstop for our cash-flow borrowing.”

Additional California posts:
LA Times: Schwarzenegger says he got voters’ message ‘loud and clear’ and Gov. proposes selling L.A. Coliseum, other properties to raise cash and California elected officials’ pay will be cut 18%
Jim Blazsik: The Top and Bottom 10 States for Overall Freedoms
Steven Crowder, Big Hollywood: Throwing Down With the Governator
Blue Crab Boulevard: What The National Media Is Not Telling You
Frank DeMartini: So Goes California, So Goes the Nation?
Michelle Malkin: Nice “work” if you can get it and No “robust debate” on amnesty and Latinos to Obama: You still owe us more and The Taxinator loves his open-borders welfare state and The Arnie-Barry lovefest and The paper of labor and What the Sacramento Bee really thinks of voters and California to tax-and-spenders: No, no, no, no, and hell no and California: The poster child for dysfunction and Live from the Cali tax revolt and What George Will missed: The decrepit state of the California GOP
James Hudnall, Big Hollywood: So Goes California, So Goes the Nation
Ztower: The President’s Model – California – Losing Manufacturing Jobs And Increasing Government Jobs
Fire Andrea Mitchell!: Hey, Arnold, we are not your ATM! and 10,000 workers in Mexifornia to be laid off.
Infidels Paradise: Does Arnold Have An IOU For Jacko’s Funeral Security?
Hot Air: Schwarzenegger Plays Hardball While Democrats Debate Whether Cowtails Should Be Amputated and AIP Column: Obama’s Utopia and CA Democrats solution: Spend money they don’t have and Crazy Arnie: Everything must go! Update: Reason says, “Hasta la vista, baby” and California tax revolt: Voters crush Schwarzenegger’s budget proposals at the polls

GayPatriot: The Fall of the Governator: Will he be back?
Ed Driscoll, Pajamas Media: Airbrush Alert
Around The Sphere: They Don’t Have The Do-Re-Mi
California Chronicle: Garamendi Says the Coast of California is Now Up for Sale to Big Oil
Maggie M. Thornton, Right Pundits: California Voter Revolt: Schwarzenegger Budget Propositions Defeated
The Gaea News: Schwarzenegger says California should examine other nations’ experiences in taxing marijuana
La Shawn Barber’s Corner: SacBee Rants Against Voters, Then Lies About Rant
Washington Times: Schwarzenegger knocks Calif. voters
Reason Magazine, Hit & Run: Gov. Arnold: San Quentin, I’ll Sell Every Inch of You!
Bill Whalen, Wall Street Journal: What If Arnold Had Seized the Moment?
Jonathan Lloyd, NBC Los Angeles: Schwarzenegger: High Time for Marijuana Debate
Olsen Ebright, NBC Los Angeles: Six-Figure Salaries No More for Calif. Officials
GayPatriot: Blaming California Voters When They Should be Confronting Public Employee Unions
American Thinker: It really isn’t that complicated
Frugal Café Blog Zone: Unemployment Hodge-Podge: Government Struggling to Help Families Applying for Aid for First Time
Bob’s Bites: Go Ahead, Laugh at California. You Are Next
Frugal Café Blog Zone: No Santa Claus for Arnie: Californians Weary of Increased Taxes, ‘Governator’ Unhappy with Voters

Categories: Conservatism, Economy, Government, Illegal Immigration, Social and Political Climate, US Borders
Tags: Arnold Schwarzenegger, bankrupt, California, citizens against government waste, Disneyland, economic depression, economic free-fall, economy, government mistakes, government overspending, governor, illegal aliens, IOUs, liberals, RINOs, welfare