What's your take?

What should be done with the Golden State and it's financial problems?

by Michael Pickett on 03/20/11

Jerry Brown has again assumed the governors office in California in November. Since his return his analysis and summery of the financial status of the state is this: “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.” Here are the facts about California.

 

 

 

Unemployment is at 20%. Crime and gang activity is on the rise as police budgets are cut. Healthcare providers are at an all time low with the fewest number of emergency rooms per million people in all 50 states. Hoards of illegal immigrants are pouring into the cities displacing citizens. Traffic is becoming increasingly worse and the state cannot keep up repairing the roads they already have. The state is facing a 19 billion dollar budget deficit this year, 6.2 billion of that is said to be owed to retirees for the states pension program. The state also holds the record for the most foreclosure filings for 2010 at

546, 669 and to make matters worse property values continue to plummet, with the average decline in value at 63%.  Some 20% of the residents in Las Angles County are on some type of public aid. 1 out of 4 Californians under the age of 65 have no health insurance. In the 1970’s the state the most per student than any other state, today they are ranked 48^th in that category. Crime is also out of control with crime in San Diego schools up by 31% and in Oakland Police Chief Anthony Batts said they will no longer respond to the following because of budget cuts, grand theft, burglary, car wrecks, identity theft and vandalism.

 

 

 

The state is doing what they can to keep up as seen by the taxes residents pay. They have the highest sales tax of any state at 8.25% as well as the highest gasoline tax at 67c per gallon. Residents pay the third highest state income tax in the nation at 9 to 10 %. Governor Brown has proposed 12 billion in spending cuts and 12 billion in tax increases, yet to be approved by the state legislators who last year passed 725 new laws that many say are pointless or unneeded.

 

 

 

What should be done about the Golden State, once the shining star of the union. Some in Washington DC are fabricating legislation to allow states to go bankrupt thus allowing them to shed debt and start over. California would surly be the first to do so if this became possible. Some think the federal government should bail out the failing California economy, but then what would keep them from doing it again? Should other states make loans to the state? Should there be an emergency declared and the states financials be taken over by private companies until solvent?

 

 

 

Tell us what you think, what you see as the problem and your ideas on how to solve it. I will be waiting for your comment.

 

Facts provided by Clip News, Alternative Media Networks

 

 

 

Mike

 

 

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