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View Poll Results: What should California do to solve its $40 billion budget deficit?
Cut spending.
61
48.03%
Raise taxes.
7
5.51%
Both of the above.
46
36.22%
None of the above.
13
10.24%
Voters: 127. You may not vote on this poll

What should California do to solve its $40 billion budget deficit?

Old 01-10-09, 04:51 PM
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What should California do to solve its $40 billion budget deficit?

California's $40 billion budget deficit is caused by too much spending, not by lack of tax revenues.

California has the 6th highest tax burden of any U.S. state.

In the past decade, its state government spending increased from from $56 billion to $131 billion.

Also, the state's high taxes are causing substantial amounts of capital flight and brain drain.

I vote for cutting spending.

What do you vote for?



http://online.wsj.com/article/SB123154816733469917.html

January 10, 2009

California's Gold Rush Has Been Reversed

Entrepreneurs are fleeing heavy taxes in the state.

By DEVIN NUNES

Tulare, Calif.

On Jan. 24, 1848, James Wilson Marshall found gold at Sutter's Mill, in Coloma, Calif., sparking a mad rush of some 300,000 people desiring to strike it rich. San Francisco grew from a tiny hamlet to a boomtown in no time, and in 1850 California entered the Union as the 31st state.

With this history at their back, state leaders might have understood that people have a propensity to get up and move when a better life is to be had elsewhere. But no. After more than 150 years of being a destination, California is becoming a place entrepreneurs, investment capital and the hardy workers who made it a global leader in agriculture, technological innovation and scientific research are fleeing. This exodus is the marker of something deeper than a national recession. It's a sign that the attempts by state leaders to spend their way back to prosperity are killing California.

While it has the sixth highest tax burden in the nation, according to the nonpartisan Tax Foundation, California is facing a breathtaking $40 billion budget deficit this year. This comes on the heels of a decade-long spending spree. Last year the state budget was $131 billion, up from $56 billion in 1998.


Citizens are burdened by all manner of state regulations. To mention just one example, this year a new law enacted by ballot initiative bans cages chicken farmers use on the grounds that it is inhuman to put birds in cages that prevent them from spreading their wings. Complying with the new law will cost farmers hundreds of millions of dollars, which will force many to leave the state. And that will force us to buy our eggs from other states and, possibly, others nations, such as Mexico.

And just as a fallen tree can divert the flow of water in a creek, bad economic policies divert the flow of investment. Entrepreneurs and investors, seeking the path of least resistance, leave when it becomes easier to make a living in more business-friendly states. In 2000, according to the state's Department of Finance, about 150,000 people moved into California. But in the years that followed the in-migration slowed, and in 2005 it reversed, when a net 52,000 people moved out. In 2008, the outflow topped 135,000 people.

Consequently, Idaho, Utah and Wyoming all have unemployment rates around 5% at a time when California is suffering an unemployment rate of 9%. Californians are moving east and creating jobs in their new home states.


Over the past few years, we've witnessed the state government's response to the capital and entrepreneur flight out of our state: Taxes remain high, and lawmakers employ all the tricks in the book to produce "balanced" budgets from shifting expenses around to borrowing ever larger sums of money.

It's now time to turn to the ballot initiative and enact needed reforms that elected representatives in Sacramento have been unwilling to tackle on their own. We're on a dangerous fiscal course, and the people themselves will have to fundamentally change state government to correct it.

Two broad reforms are needed. The first is that we must create a part-time, nonpartisan citizen legislature -- a model that has proven effective in states like Texas (part-time) and Nebraska (part-time and nonpartisan). Californians need to be able to elect leaders whose primary interest is public service, not furthering political careers.

The second fundamental reform is on taxes and spending. Other states have passed a Taxpayers' Bill of Rights. We need to do the same, so I and others will soon be launching a campaign to enact the following:

- Two-year budgeting. This would allow a part-time legislature the time it needs to hold hearings, conduct negotiations, and provide oversight to determine the state's spending priorities in the first year, while in the second, write and pass the budget.

- End budget stalemates. This is easier than it sounds if we enact this reform: Automatically adopt the governor's proposed budget, provided it is free of tax hikes, if the legislature fails to pass a budget by its constitutional deadline. This reform would give the legislature a compelling reason to move the budget along briskly, and it would end the continual government shutdowns resulting from partisan bickering and gridlock.

- New spending controls. To prevent overspending, we need mandatory limits on the growth of government. State spending should not grow faster than inflation, and a 3% budget reserve must be established to prevent unanticipated expenditures, such as natural disasters, from creating a deficit.

- Refund budget surpluses. When the state government is flush with funds, taxpayers should get some of their money back. We need a mandate for the state to send tax-rebate checks to all taxpayers when surpluses exceed the rate of inflation. Had this reform been law in 2001, that year's $10 billion budget surplus would have yielded each taxpayer a rebate of about $667.

My family has farmed the San Joaquin Valley for three generations. And my first lesson in capital flows came when I was 14. I had cracked open my piggy bank to buy seven head of young cattle to raise and sell. I had two choices: I could buy feed or I could fix fences in exchange for free grazing. Like water flowing down a furrow, my cattle went to pasture where I could make a higher profit.

These are big reforms, but we need to stop buying feed to eat for today and start mending fences to make the state better off in the long term. California commerce can again be the envy of the world if we fix the problems that created the financial and economic crisis.

The bottom line is that we should let the water of prosperity flow again unobstructed into our state. If it does, investors, businesses and jobs will return to the Golden State.

Mr. Nunes, a Republican, is a congressman from California.
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Old 01-10-09, 04:54 PM
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Re: California is the example of what's coming for the US in whole

Reassess entirely the stupidity of its 'liberal' entitlement culture.

That won't happen.
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Old 01-10-09, 05:00 PM
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Re: What should California do to solve its $40 billion budget deficit?

Start 2 threads.
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Old 01-10-09, 05:01 PM
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Re: What should California do to solve its $40 billion budget deficit?

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Old 01-10-09, 05:18 PM
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Re: What should California do to solve its $40 billion budget deficit?

Fine all of the illegals, and then deport them.
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Old 01-10-09, 07:23 PM
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Re: What should California do to solve its $40 billion budget deficit?

One place that will definitely help: cut the education budget. That is by far the largest component of the California state budget and cutting that down through a thorough review of every Department of Education item will seriously help things.
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Old 01-10-09, 08:24 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by RayChuang View Post
One place that will definitely help: cut the education budget. That is by far the largest component of the California state budget and cutting that down through a thorough review of every Department of Education item will seriously help things.
California already extremely low and close to the bottom in education spending. Education spending is already low and the kids nowadays really don't have any programs at school. I think they need to cut everywhere else first than last but not least spending other than education.
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Old 01-10-09, 09:52 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by pedagogue View Post
Fine all of the illegals, and then deport them.
Take illegal immigration seriously and it will help solve a lot of our problems. However.. it's easier to ignore and just ask American citizens to just pay more taxes.
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Old 01-10-09, 10:01 PM
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Re: What should California do to solve its $40 billion budget deficit?

Elect a Republican governor?
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Old 01-10-09, 10:54 PM
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Re: What should California do to solve its $40 billion budget deficit?

Recall Governor Schwarzenegger?

Isn't that what Californians do?
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Old 01-10-09, 11:26 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by grundle View Post
And just as a fallen tree can divert the flow of water in a creek, bad economic policies divert the flow of investment. Entrepreneurs and investors, seeking the path of least resistance, leave when it becomes easier to make a living in more business-friendly states. In 2000, according to the state's Department of Finance, about 150,000 people moved into California. But in the years that followed the in-migration slowed, and in 2005 it reversed, when a net 52,000 people moved out. In 2008, the outflow topped 135,000 people.

Consequently, Idaho, Utah and Wyoming all have unemployment rates around 5% at a time when California is suffering an unemployment rate of 9%. Californians are moving east and creating jobs in their new home states.
Mr. Nunes' argument is not completely accurate. He has missed one <i>major</i> point. Price of real estate. It's not a coincidence that the population shift amongst workers and corporations towards exodus coincides with runaway property values. Tax percentages on the other hand haven't changed all that much since boom times. But I agree that spending needs to decrease, and we need new leadership. The Governator was probably the worst possible thing that could have happened to CA.

Last edited by wabio; 01-10-09 at 11:29 PM.
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Old 01-10-09, 11:29 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by pedagogue View Post
Fine all of the illegals, and then deport them.
That would help. Put the army on the boarder to stop more from coming in.
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Old 01-11-09, 12:22 AM
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Re: What should California do to solve its $40 billion budget deficit?

Charge $1 per illegal as an entry fee. You'd have billions of dollars within a few years.








Ok, not really.
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Old 01-11-09, 09:18 AM
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Re: What should California do to solve its $40 billion budget deficit?

Ah. More neocon economic rhetoric from people who don't understand economics.
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Old 01-11-09, 09:32 AM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by Superboy View Post
neocon economic rhetoric
More comments from people who don't know what neoconservatism is.

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Old 01-11-09, 09:55 AM
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Re: What should California do to solve its $40 billion budget deficit?

George Will: Oh gosh, that's not simple. Neoconservatives are persons who in domestic policy often were former Democrats who felt that conservatives had erred in not accepting the post-New Deal role of the central government. They were in their early incarnation focusing on domestic policy and were distinguishing themselves from Goldwater conservatives.

Also in domestic policies, however, as the '60s unfolded into the '70s and '80s, they led the critique of overreaching in domestic social engineering, saying that we accept the post-New Deal role of the central government, but the accumulated powers thereof are being wielded in a way too confident and optimistic and hubristic, if you will.

In foreign policy, and here's where it gets interesting, they have a more ambitious, more confident approach to the use of power than regular conservatives -- if you see the symmetry here? They say that America is a nation uniquely equipped as the sole remaining superpower to order the world and spread our values, etc., etc.

Who are they? The ones most commonly mentioned are Charles Krauthammer, Paul Wolfowitz, maybe Dick Cheney and his aide, Scooter Libby, Doug Feith in the Pentagon, Bill Kristol.
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Since George Will knows everything, I thought I would post his definition.
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Old 01-11-09, 10:09 AM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by wabio View Post
Mr. Nunes' argument is not completely accurate. He has missed one <i>major</i> point. Price of real estate. It's not a coincidence that the population shift amongst workers and corporations towards exodus coincides with runaway property values. Tax percentages on the other hand haven't changed all that much since boom times. But I agree that spending needs to decrease, and we need new leadership. The Governator was probably the worst possible thing that could have happened to CA.
Grey Davis was still worse.

It's funny no one mentions that it was the real estate bubble burst as one of the major contributing factors.

Look here:

http://www.edd.ca.gov/About_EDD/pdf/urate200812.pdf

you'll see the biggest drop in employment numbers were in the construction and financial industries.

Last edited by Superboy; 01-11-09 at 10:14 AM.
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Old 01-11-09, 10:17 AM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by wendersfan View Post
More comments from people who don't know what neoconservatism is.

Really? people who value the free market and non-interventionist economic policy, without any understanding of how the free market and governments actually work.
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Old 01-11-09, 11:05 AM
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Re: What should California do to solve its $40 billion budget deficit?

The governor should auction off his early gay porn films. All proceeds to the state.
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Old 01-11-09, 03:36 PM
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Re: What should California do to solve its $40 billion budget deficit?

The way some of the legislature talks and more importantly acts, I almost believe that they are receiving bribes from the Mexican Gov't.
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Old 01-11-09, 03:48 PM
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Re: What should California do to solve its $40 billion budget deficit?

Since public education eats up so much money, the public schools should be restructured, especially the middle and high schools.

If a student has no real interest in educational pursuits he should be programmed into a vocational curriculum which allows him to graduate at the age of sixteen with a vocational diploma. If college is a student's goal, he should be programmed into a college prep curriculum. It's a big waste of money educating students with the idea that they all want to go to college after high school. If this was true, we wouldn't have a continually rising drop-out rate in the public high schools with the average being 25% dropping out. (And in some school districts reaching over 50% dropping out.)

We should also look into on-line education for some high school students. Students could learn at home and come into the schools on a weekly basis for testing, lab work, tutoring, etc. (Since the cost of running a school with the necessary personnel is very high with all the needed janitors, cafeteria workers, security guards, teachers, counselors, administrators, etc. in addition to the books, buildings, food, etc., we'd save a few bucks by not having the giant "day care" centers for high school students that we have now at some schools.)
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Old 01-11-09, 04:55 PM
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Re: What should California do to solve its $40 billion budget deficit?

The first thing CA could do is start charging $20 copays for all the MediCal prescriptions they give away for free. I'd bet a huge chunk of the state's budget is spent on medications. What's amazing is most of these recipients I see drive nice cars, have fancy phones/ipods, clothes, etc.
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Old 01-11-09, 08:21 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by wendersfan View Post
More comments from people who don't know what neoconservatism is.

And people scoff at me when I say that the terms means whatever the person wants it to mean. How much more proof do people need?

Who is scoffing now?
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Old 01-11-09, 08:33 PM
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Re: What should California do to solve its $40 billion budget deficit?

Originally Posted by Franchot View Post
Since public education eats up so much money, the public schools should be restructured, especially the middle and high schools.
Agreed.

Stop throwing more money after bad money. There are millions of kids in school who are sucking out resources that they will never use. Why throw money at failing school systems, failing kids, and poorly run administrations? There are huge social problems that are just spilling over into the schools. People need to recognize a bad investment, and look to spend tax money elsewhere [charter schools, alternative education programs, vocational training, etc].

Oh, and require stricter review of papers and residency to cut down on people looking for a free ride and/or to abuse the system.
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Old 01-11-09, 08:35 PM
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Re: What should California do to solve its $40 billion budget deficit?

Legalize Marijuana
Legalize Prostitution
Legalize Casino Gambling State Wide

Regulate and Tax them.
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