- Banned
- #81
alifornia is once again asking Washington for help with its growing budget woes.
The state is $20.7 billion in the hole and has pretty serious structural problems that make it unlikely it will fix itself anytime soon.
Last summer, state officials were turned down hard after going hat in hand to the White House, warning of a dire situation if the state's budget hole wasn't addressed soon.
This time, Sacramento isn't using the b-word, instead calling any federal bailout a needed "investment."
"No one is looking for a bailout. We're looking for an investment," said Senate President Pro Tem Darrell Steinberg, D-Sacramento, adding that the state needs to "fight" for more money.
California already has received just over $8 billion in federal stimulus dollars that helped the state close the budget deficit last year. On Friday, Schwarzenegger will release his initial budget proposal for the next fiscal year, and the Legislative Analyst's Office already has called on state leaders to "aggressively seek new federal assistance" to help close the projected deficit.
California Seeking Federal Bailout - Planet Money Blog : NPR
Detroit's troubles are forcing some communities to attempt an auto bailout of their own: propping up their local car dealerships.
Two California towns, hoping to preserve jobs and tax revenue, are bailing out local car dealers that are struggling to stay afloat amid tight credit markets and plunging demand for new vehicles.
Victorville, a desert town on the main highway between Las Vegas and Los Angeles, recently approved a $200,000 loan to Victorville Motors, a 40-year-old family-owned dealer in the town's auto park. Norco, east of Los Angeles in the so-called Inland Empire, has approved loans of $500,000 each to Norco Mazda and Frahm Dodge. A third city, Redlands, is mulling over a financial-assistance proposal for its new- and used-car dealers.
California Towns Bail Out Auto Dealerships - WSJ.com
Recipient Reported Data Map
Just a few....
Victorville is the Federal government?
No but why did Victorville have to come up with that money in the first place? would it be because as part of the deal struck with the auto companies to get auto bailout deal that these dealerships were put on the chopping block? I gave you a few examples of Federal money going to california, but can give you more, if you like...
According to the U.S. Census Bureaus Consolidated Federal Funds Report for fiscal
year 2002, total federal expenditures in California rose to $206 billion.. Census.gov
That was 8 years ago and thats 9% higher than it was the previous year, what is really striking is that California has Federal tax surplus because of the extremly high tax burden in the state which has gone down, however if that Federal surplus, were directed into a state budget that was managed properly and less spent on the sheer volume of programs that California gets from the Federal Govt. then you know something, it may just be better off, my state has the same problems as California, just not as large. In my state we had a Gov. that had a bad habit of underfunding the states rainy day fund and over funding social services while losing tax base, that same person is now everyones Homeland Security Director. So yes, California takes a lot of money from the Federal Govt. and gives a lot in return but is terribly managed and very over regulated and that is why you have a state that is bleeding money and business.
So you are saying that CA is unique in Car dealerships having financial problems, therefore that is your link to the OP comments?