U.S. backs off threat to withhold California stimulus money

Discussion in 'Politics' started by WillowTree, May 20, 2009.

  1. WillowTree
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    WillowTree Diamond Member

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    Obama administration tells Gov. Schwarzenegger that the state did not violate the stimulus law by cutting pay for home healthcare workers. It is eligible for $8 billion more for its Medicaid program.
    By Peter Nicholas
    8:30 AM PDT, May 20, 2009
    Reporting from Washington -- The Obama administration has backed off its threat to withhold billions of dollars in stimulus money from California, telling Gov. Arnold Schwarzenegger the state did not violate federal law in cutting pay for home healthcare workers in a bid to help balance the budget.

    In a letter that was given to the governor this morning, the U.S. Department of Health and Human Services said the state remains eligible to receive another $8 billion in stimulus money for its Medicaid program, a ruling that may offer some solace for state officials coping with the resounding voter defeat Tuesday of five ballot measures aimed at closing California's huge budget shortfall.









    U.S. backs off threat to withhold California stimulus money - Los Angeles Times








    :lol: flippin an a floppin,, blippin an a boppin
     
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  2. Meister
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    Meister Platinum Member Supporting Member

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    This is no surprise...it was nothing more than some sword rattling in washington. Personally I think it was just to draw attention to the stimulus money with the people of Ca. Arnie is such a left wingnut republican he might as well be a democrat or a card carrying socialist. Obama needs Ca. when election time comes around again for him. They have the #1 electorial votes in the nation, it was a no brainer. But....Obama will have more say in Ca. politics with this stimulus money...any guesses what this will lead to?
     
  3. wimpy77
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    wimpy77 Member

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    im not suprised. at this point they need all the money they can get.
     
  4. Vel
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    Vel Gold Member

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    Do you think that come election time the citizens of California will remember that Obama tried to blackmail their state in order to provide a payback for his union supporters? I doubt it, but if I were a California republican I'd make sure and remind them.
     
  5. Meister
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    Meister Platinum Member Supporting Member

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    The people in Ca. have gone so far over to the left, the right doesn't have a chance...nor would it matter. There are a lot of conservatives in the rural areas of the state...but LA, and San Francisco make up the population...and they are pretty extreme these days. Oange County used to be a strong conservative area, but now it's losing steam.
     
  6. American Horse
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    American Horse AKA "Mustang"

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    Leaving the WH Arnold said that a bail-out for California is off the table. To me than means a bail-out is possible under the right circumstances. Once Ca is, then so too with NY; when that happens look out, Federalisms is at risk. I wouldn't be surprised if Ca didn't legalize and then tax marijuana. That has been the path they are following up to this point.
     
    Last edited: May 20, 2009
  7. Ame®icano
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    Ame®icano Gold Member

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    By rejecting proposals, CA voters sent clear message that they want to cut spending. Additional $8B of federal maney wont teach them nothig and will change nothing. When they spend this money, they will get more, my guess within 6 months.
     

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