California cities going tits up all over

[Darth Wagtaros]

Another proof socialism doens't work.

No, its proof that taxing your people nothing more than whatever spare change they happen to have lying around doesn't work.

Or that offering your people the moon while not having money to pay for it doesn't work. 

[Eddie Teach]

the home of the breast implant. 

Oddly enough California barely makes the top 5 in plastic surgeons per capita.

Who's ahead of them?

[Neil]

Fabulously wealthy state, far more prosperous than most small nations, and they're a financial basket case. What a tragedy really.

The American obsession with tons of government services with no taxes makes them unstable.

Comparatively, California's taxed out the ass.

Compared to other states, but not in an absolute sense.

Mind you, they also have the disadvantage of being part of the United States, so various mistakes like your political system, your legal system and your health care system are wasting a lot of money.

[CountDeMoney]

Mind you, they also have the disadvantage of being part of the United States, so various mistakes like your political system, your legal system and your health care system are wasting a lot of money.

The Department of Defense appreciates your co-pay for NORAD.

[KRonn]

Fabulously wealthy state, far more prosperous than most small nations, and they're a financial basket case. What a tragedy really.

The American obsession with tons of government services with no taxes makes them unstable.

Plenty of taxes are paid, especially in California and many other states with the big government. My state of Massachusetts is supposedly the next in line to Cal in highest ratio of debt to GDP.
The problem is with how we've been doing our government spending across the board.

[Neil]

Mind you, they also have the disadvantage of being part of the United States, so various mistakes like your political system, your legal system and your health care system are wasting a lot of money.

The Department of Defense appreciates your co-pay for NORAD.

Sort of.  Yeah, we pay, but the main thing we're bringing to the table is our vast territories.

[Neil]

Fabulously wealthy state, far more prosperous than most small nations, and they're a financial basket case. What a tragedy really.

The American obsession with tons of government services with no taxes makes them unstable.

Plenty of taxes are paid, especially in California and many other states with the big government. My state of Massachusetts is supposedly the next in line to Cal in highest ratio of debt to GDP.
The problem is with how we've been doing our government spending across the board.

If all these services are required, then you're not paying enough tax.

[MadImmortalMan]

One thing that's causing this is the Governor changed the way the car registration tax money is distributed. Brown needed the money to shore up the state budget and now the cities aren't getting their share anymore.

[viper37]

Fiscal Crisis in States Will Last Beyond Slump

[CountDeMoney]

Fiscal Crisis in States Will Last Beyond Slump

No kidding.  Just wait till next 2013-14, when the austerity measures kick in because the knuckleheads in DC couldn't come to a deal.  That's when the shit's really going to hit the fan.

[Admiral Yi]

No kidding.  Just wait till next 2013-14, when the austerity measures kick in because the knuckleheads in DC couldn't come to a deal.  That's when the shit's really going to hit the fan.

How so?

[CountDeMoney]

How so?

The sequestration kick-ins from the 2011 Budget Control Act.  Slicing off that much that fast is gonna hurt.

[Admiral Yi]

The sequestration kick-ins from the 2011 Budget Control Act.  Slicing off that much that fast is gonna hurt.

Through the effect on the real economy or through some other mechanism?

[CountDeMoney]

The sequestration kick-ins from the 2011 Budget Control Act.  Slicing off that much that fast is gonna hurt.

Through the effect on the real economy or through some other mechanism?

I think the impact on the real economy would be enough.

More than 42,000 Coloradans could lose their jobs through a process known as sequestration if Congress cannot agree on a plan to reduce the federal deficit, according to a study released today.
The study's analysis explores the economic impact on both defense and domestic jobs if the Budget Control Act goes into effect on its Jan. 2 deadline.
The Act will automatically cut military and space budgets by nearly $500 billion unless lawmakers create — and agree on — a new plan. Colorado has the second-largest aerospace economy in the nation.
"This is an unprecedented level of budget cuts and the industry does not know how to plan, so it is crippling the industry," said Vicky Lea, aviation and aerospace industry manager for Metro Denver Economic Development Corporation.
The new estimates place Colorado's losses at more than 18,000 defense jobs and more than 24,000 non-defense jobs by 2013.
"The impact of this will be just as bad on the domestic side as the defense side," said Sen. Jeanne Shaheen, D-N.H., at a Tuesday morning press conference.
Aerospace Industries Association commissioned George Mason University's Stephen S. Fuller and Chmura Economics and Analytics for the study, which is being publicized by both Republicans and Democrats.
"We all know that we have a fiscal crisis to address," said Sen. Kelly Ayotte, R-N.H., at the press conference. "But the way the sequestration works is irresponsible."
With nearly 50 percent of Colorado's aerospace companies employing fewer than ten people, Lea worries that many of the smaller companies may not survive the budget cuts.

Not saying it isn't necessary;  just saying it's gonna hurt.

[CountDeMoney]

Oh, found another article on the study--

New Report Predicts Widespread American Job Losses

Government Employees, Teachers, Nurses Among At-Risk Workers

ARLINGTON, Va., July 17, 2012 /PRNewswire-USNewswire/ -- A new economic impact analysis concludes that 2.14 million American jobs could be lost if the Budget Control Act's sequestration mandate takes effect on January 2, 2013. That is the date that budget cuts of $1.2 trillion start throughout government unless Congress and the administration agree on a solution.

Dr. Stephen S. Fuller, Dwight Schar Faculty Chair and University Professor and Director for Regional Analysis at George Mason University, in conjunction with Chmura Economics and Analytics, conducted the study on behalf of the Aerospace Industries Association.

"The results are bleak but clear-cut," said Fuller. "The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds.  An already weak economy will be undercut as the paychecks of thousands of workers across the economy will be affected from teachers, nurses, construction workers to key federal employees such as border patrol and FBI agents, food inspectors and others."

The analysis concludes that the automatic spending cuts mandated in the Budget Control Act of 2011 affecting defense and non-defense discretionary spending in just the first year of implementation will reduce the nation's GDP by $215 billion; decrease personal earnings of the workforce by $109.4 billion and cost the U.S. economy 2.14 million jobs.

"This report shows that sequestration is not just a defense problem, it's an American problem," said AIA President and CEO Marion C. Blakey. "Unless our leaders in Washington take action, massive cuts have the potential to devastate our economy. In addition, more than one million defense-dependent jobs on the line will risk our national security, economy and the technological innovation that keeps America Second to None."

According to "The Economic Impact of the Budget Control Act of 2011 on DOD and Non-DOD Agencies," 48,059 jobs in healthcare, 98,953 in construction, 473,250 in manufacturing and 617,449 federal jobs are at risk. The study outlines the impacts in all 50 states with California, Virginia and Texas experiencing the largest potential jobs loss and most states taking five-digit job losses.

The threat of sequestration is bringing many voices to the table. At the July 17 press briefing releasing the numbers, participants said:

Senator Kelly Ayotte (R-NH): "Military leaders have been clear that defense sequestration will deprive our troops of the resources they need and undermine our national security for generations," said Senator Ayotte, Ranking Member of the Senate Armed Services Readiness Subcommittee.  "This new study underscores that sequestration will also crush our economy, devastate our defense industrial base, and put tens of thousands of Americans out of work.  Republicans and Democrats must work together now to find alternate spending reductions that will not add a national security crisis to our fiscal crisis."

Senator Jeanne Shaheen (D-NH): "I want to thank the AIA for conducting this study, which looks at this question in the proper context of the entire problem. Focusing on only one half of the problem creates the impression that we only need half a solution, but that won't work," Shaheen said. "We cannot continue to avoid tough decisions on the future of our debt and deficit.  We should continue to work on a comprehensive solution that puts everything on the table. It's the right thing to do for our national security, for our economy, and for our people."

Phoenix Mayor Greg Stanton: "The report's findings are proof that Arizona faces serious job loss - nearly 50,000 high-wage jobs - at the expense of Congress's failure to deal with looming, indiscriminate cuts to our aerospace and defense industries," Phoenix Mayor Greg Stanton said. "We can't afford to take that kind of a hit. We know some cuts will happen, but we need to be strategic, propose a solution and protect jobs to keep our momentum going forward out of the recession, not backward."

San Diego Mayor Jerry Sanders: "Like every other city in the country, San Diego has been struggling to recover from the worst national recession in nine decades. Arbitrary, politically motivated cuts to the national defense budget are the last thing our city needs right now, given that a quarter of all jobs in this region are tied to the defense industry."