California going down — begs for fed bailout

“State tax collections plummeted unexpectedly in April, wiping out months of steady gains that legislators hoped would ease their budget troubles and restore California’s economy faster than experts predicted.  …

Revenue for April, the biggest revenue month because it is when most Californians pay their taxes, lagged projections by nearly 30% — roughly $3 billion, according to state officials. The drop was steep enough to erase improvements recorded in each of the four previous months.  …

The April collections came almost entirely from personal income taxes. Most corporate and sales taxes have not yet been reported. If they, too, come in below projections, the state’s budget problem would grow worse.

The decline sets Sacramento back as next month’s deadline for passing a budget approaches. Lawmakers face a deficit of $18.6 billion — about 20% of general fund spending — with no easy options left for addressing it, as they have already cut state services severely and temporarily raised income, sales and vehicle taxes.  …

The Legislature’s top two Democrats, Senate President Pro Tem Darrell Steinberg (D-Sacramento) and Assembly Speaker John A. Pérez (D-Los Angeles), spent Monday in Washington, pleading for aid from congressional and Obama administration officials.”  “Plunge in state revenue dashes hopes of an easy budget fix

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4 Responses to “California going down — begs for fed bailout”

  1. Mystery Meat Says:

    I know what to do! Let’s burn down a bank and kill a few of the employees. Then Washington will know our cause is just.

  2. Kathy Says:

    We need to let CA fail, that way all the other states will see that no help is coming and straighten out their budgets.

  3. astonerii Says:

    Wonder how much of that was caused by people who were unemployed or underemployed getting huge refunds because their end of year gross incomes were significantly less than their weekly paychecks while working indicated.

  4. Fred Sinch Says:

    California and New York must be allowed to go bankrupt. No federal bailout for either; let the idiot Democrat politicians/union stooges who voted for all these give-aways pay for them. Look at the results of November 2010 elections. In both states, the same corrupt Democrat political hacks were re-elected by wide margins. The people of California and New York deserve no help from the federal taxpayer.

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