Federal Receivership of California Is Already Here, In Slow Motion
The harder I look for a way out of California’s current predicament, the more paths I see that seem to end at the same destination: federal receivership.
Slowly but surely, we’re already getting there. The federal courts have been in control of our prison system (or at least have the legal authority—control is elusive in a world that includes the California Correctional Peace Officers Assn.) for years. And on Monday, in this story, the Los Angeles Times reports that as many as six state parks that include U.S. lands could revert to federal control as a consequence of the governor’s plan to close them.
State parks spokesman Roy Stearns is quoted as saying: "It’s important to note that nobody is proposing to close these parks permanently. This is a temporary suspension until budget times are better. We have no intention of giving them away or selling them. There’s an interest in finding a way to preserve and protect them. It could be temporary federal control. We would hope they can come back to state parks. We are all wondering what’s next." (italics mine).
Schwarzenegger Offers a Budget Path
When Assembly Speaker Karen Bass stomped out of a meeting with the governor Sunday night and boycotted a Big 5 budget session Monday, she complained that Gov. Arnold Schwarzenegger was pushing a laundry list of reform measures that have nothing to do with the budget.
But if Bass and other Democrats listen closely, they may hear the governor offering them a path to a budget agreement, even though it’s a road they won’t much like.
Schwarzenegger has been talking about the need to eliminate waste, fraud and abuse in state programs like welfare and in-home supportive services. He even brought in a posse of district attorney types from around the state Monday morning to share horror stories about the problems with IHSS, which provides in-home care for the frail elderly and disabled.
No surprise there. “Fraud, waste and abuse” is almost a mantra for Republicans and no few Democrats looking to show voters that they’re going to be tough with the government’s money. It’s a cry that typically fades away as soon as the polls close on election day.
IOU Proposal a Test of California’s Creditworthiness
California is broke … financially fried. The Golden State has spent every last dime it has, and more. Spending has out paced revenues for so long the state simply doesn’t have the cash to pay its debts. The State Controller could begin issuing IOUs in the very near future. And California will go from the frying pan to the fire.
Instead of cashable checks, the state will send its creditors registered warrants (A.K.A. “IOUs”) stating that California owes them money and will pay at some later date.
That means that hospitals, doctors, nurses, dentists, technicians, construction companies, laborers, school districts, counties, cities… every person, business and organization that is owed money from the state will be forced to take an IOU and find some other way to pay their own bills.
State law requires your business to accept the IOU as full payment and as such you will have to pay taxes on the income just as if you had been paid in real money!
Big-Screen TV Ban will Hurt Small Business
I just don’t get it.
Generally, the “it” I’m referring to is the day-to-day decisions made by our state leaders, or by those who have somehow wound up on a state commission or board with real authority.
Specifically, the “it” is in reference to the California Energy Commission’s proposal to ban certain types of large screen televisions.
My guess is that when most Californians catch wind of this, they’ll shrug their shoulders and think, “it can’t happen.” As the owner of a small home theatre business in San Diego, my reaction is, “I can’t afford for it to happen.”