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The whispers are beginning. California might have to default on its bonds. Yet, many in Sacramento are promoting a $22 billion bond (principal plus interest) that includes billions is acknowledged pork for a water project. Our out of control amateur Governor is even trying to spend some of the money--BEFORE the voters get to even vote on the measure!
Now, the Democrats want to bond the next 20 years of bottle and can recycling money, for $8.9 billion--which means we pay back a total of $17.8 billion--just to help cover the deficit.
"The California budget for the fiscal year starting in July is $19 billion short and the dire truth is no one has a clue where the money will come from, if indeed it can be found at all. That’s what no one is talking about - not commentators, not politicians, and most especially not even the major candidates for governor. What happens if (or is it when) California can no longer meet its current obligations and then defaults?
This could easily happen. After all, if you’ve already slashed budgets to the bone and still need billions more, then bankruptcy becomes a distinct possibility. But states cant file bankruptcy. There is no provision in the law that allows them to do so.
But if California stops paying its bills, then that would effectively be bankruptcy even if not legally recognized as such. It would also be an immense legal and financial black hole that would unquestionably lead to further chaos."
By mid-summer, when we are 30-45 days without a budget, and the State economy continues to sink, along with government revenues, the children of Sacramento will run out of money AND options.
This will be a long and hot summer in Sacramento. California might be forced to face reality and the incompetence of the denizens of the Capitol.
More...
Now, the Democrats want to bond the next 20 years of bottle and can recycling money, for $8.9 billion--which means we pay back a total of $17.8 billion--just to help cover the deficit.
"The California budget for the fiscal year starting in July is $19 billion short and the dire truth is no one has a clue where the money will come from, if indeed it can be found at all. That’s what no one is talking about - not commentators, not politicians, and most especially not even the major candidates for governor. What happens if (or is it when) California can no longer meet its current obligations and then defaults?
This could easily happen. After all, if you’ve already slashed budgets to the bone and still need billions more, then bankruptcy becomes a distinct possibility. But states cant file bankruptcy. There is no provision in the law that allows them to do so.
But if California stops paying its bills, then that would effectively be bankruptcy even if not legally recognized as such. It would also be an immense legal and financial black hole that would unquestionably lead to further chaos."
By mid-summer, when we are 30-45 days without a budget, and the State economy continues to sink, along with government revenues, the children of Sacramento will run out of money AND options.
This will be a long and hot summer in Sacramento. California might be forced to face reality and the incompetence of the denizens of the Capitol.
More...