Monday, May 7, 2012

CALIFORNIA IS BURNING! QUICK, MORE GASOLINE!

There are good weeks and then there are bad weeks. For California, particularly its beleaguered taxpayer citizens, last week was a very bad week. - Jon Coupal, Howard Jarvis Taxpayers Association

It’s hard to know where to start. First, while the rest of the nation comes out of recession – albeit slowly – California is doing some serious backsliding. According to the Controller’s office, government revenues are down compared to this time last year. The percentage decline was not all that great, from $40.97 billion to $40.81 billion, but the shortfall from Governor Brown’s proposed budget is a big number; more than $2 billion.

Compare these dismal numbers with Texas which, as of March, has seen a 12% increase in revenue.

Second, credit rating agency Standard & Poor’s issued a sobering statement expressing a lack of confidence that California’s political leadership could resolve the budget shortfall without the usual gimmicks. Bluntly stated, S & P said that it anticipates “budget maneuvers that may be politically expedient but fiscally unreliable.”

Third, for the eighth year in a row, California is ranked by CEO Magazine as the worst state in America in which to do business. California’s anti-business climate is legendary in the rest of the nation, and this year proved to be no exception. What is notable, however, were the brutal comments by business leaders who participated in the survey.... More, at the link.