California declares fiscal emergency

[Barefootsies]

SAN FRANCISCO, Dec 19 - California Governor Arnold Schwarzenegger declared a fiscal emergency on Friday to call lawmakers into another special session to tackle the state?s weakening finances, and separately ordered state officials to prepare to furlough and lay off employees to cut costs.

His two actions mark a dramatic escalation in the budget battle waged in recent weeks in Sacramento, the capital of the most populous US state and world?s eighth-largest economy, as its revenues fall harder and faster than expected.

California?s state government now faces a $40 billion budget shortfall over its current and next fiscal years and is on track to run out of cash in February.

California?s Democrat-led legislature concluded its prior special session on Thursday by approving an $18 billion budget package, but Schwarzenegger, a Republican, said he would veto it because he wants lawmakers to both address the state?s budget gap and ease regulations to speed construction projects to help stimulate the state?s economy.

Assembly Speaker Karen Bass said the Democrats? package would have provided for $3 billion in revenues for transportation projects, accelerated $3 billion in bonds for transportation projects and made it easier for hospital construction and expansion projects to move forward.

The dispute over which approach would better boost California?s ailing economy, underscored by its 8.4 per cent unemployment rate last month, comes on the heels of a decision on Wednesday by the state?s Pooled Money Investment Board to halt $3.8 billion in loans for public works.

The state government needs funds from the Pooled Money Investment Board to pay for vital services. The board?s action affects almost 2,000 projects, including highways, schools, levees, housing and parks.

The legislature now has 45 days to pass and send a bill or bills addressing the state budget to Schwarzenegger.

In the meantime, the state?s Department of Personnel Administration will under Schwarzenegger?s executive order adopt a plan that would go into effect in February to furlough state employees and supervisors for two days per month.

The order also calls for state agencies and departments to initiate layoffs and other ?program efficiency measures? to post savings of up to 10 per cent in the state?s general fund.

?Every California family and business has been forced to cut back during these difficult economic times and state government cannot be exempt from similar belt tightening,? a statement from Schwarzenegger office said.

Assembly Majority Leader Alberto Torrico and two other top Democratic lawmakers issued a statement that said Schwarzenegger?s order ?adds insult to injury for the state?s economy? and chided him for failing to win over either Democrats or Republican lawmakers to his budget plan.

?The governor has shown he can?t negotiate with Republicans, he doesn?t negotiate with Democrats, and now he?s refusing to negotiate with employees,? their statement said.

?It?s the same lack of leadership that has kept him from coming up with a single vote for any budget solution. And now that lack of leadership has resulted in his making a scapegoat of employees who are not the source of the problem.?

http://www.ft.com/cms/s/0/bb7714e2-c...077b07658.html

[Rochard]

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

[2012]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

[brassmonkey]

better call bush and get some bail out money

[marketsmart]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

i dont know about this project, but typically there are performance bonuses paid or fines paid by the awarded contractor to get the job done faster..

so, its probably not costing the state any more $$ by the crews working 24/7, its on the contractors back..

[baddog]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

How is it three times the cost? Because there are three shifts?

[Martin]

Originally Posted by fartfly

Love that movie.

[DamageX]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

How about you fucking run for office and do shit better then? Gotta love all the fucking whiners calling all governments/politicians stupid on various interwebs forums...

[Sly]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

I fail to see how that makes the project cost three times the amount of money. They need to get the work done either way... so it can take three months or it can take nine months, which would you prefer? Three months sounds much better to me, particularly if it's the same amount of money.

Your city Council probably has their hands in that project in some way or another, you could always go to the next city Council meeting and find out what exactly is going on with that.

[John-ACWM]

Some serious things are about to happen. This economy downfall will have some nasty consequences...

[sortie]

What happened to all the theories of war boosting the economy?

I guess 2 wars isn't enough.

[MandyBlake]

i want to declare a fiscal emergency.

[D Ghost]

Originally Posted by fartfly

Man that is a great movie, classic

[Lykos]

Asta La Vista Baby

[2012]

Originally Posted by DamageX

How about you fucking run for office and do shit better then? Gotta love all the fucking whiners calling all governments/politicians stupid on various interwebs forums...

Lets put these guys in there then and take our chances

[Iron Fist]

Hey it's Christmas people... let's just settled down!

[crockett]

Originally Posted by sortie

What happened to all the theories of war boosting the economy?

I guess 2 wars isn't enough.

War doesn't ever boot the economy as a whole, but rather it puts huge profits into the pockets of the few.

[qxm]

Originally Posted by fartfly

oh shit! ... I lol'd

[Kudles]

God I love living here

[skrinkladoo]

If Terminator can't save Cali - who can? Rocky?

[2012]

Originally Posted by skrinkladoo

If Terminator can't save Cali - who can? Rocky?

We're all going to sink into the ocean anyway ...

[dready]

Originally Posted by Rochard

The California government is stupid.

We have a large construction project here in my hometown in Northern California where they re-routing the freeway so it no longer goes directly through the center of town. Yet for some reason they working on this project twenty-four hours a day - All fucking night long. Can someone please explain to me why they are going to pay three times the cost they need to in labor to have this be a 24 hour operation? I mean, it's not something that really needs to be done quickly....

I wonder where else they have this kind of stuff going on.

Probably because labour is ultra cheap compared to the cost of the equipment rentals, which is rented by the day.