June 18, 2010
California has a $20 billion budget gap — despite last year’s ravaging cutbacks
Without a federal bailout, Schwarzenegger will TERMINATE at least six major state programs
These programs include Healthy Families, CalWORKS, Adult Day Health Care, In-Home Supportive Services, California Food Assistance Program, and all funding for Transitional Housing Placement for foster kids. Read more here.Note: This Photoshopped image was prepared last summer when Arnold cut an animal shelter program from the state budget.
23,000 teachers have received provisional pink slips — notifying them that their jobs are on the chopping block
The $20 billion gap does NOT include nearly $200 billion in loans and other unstated debts
Source: Fog City JournalHow bad is the problem? Consider that California has a $20.7 billion deficit in the general fund budget over the next 16 months. California owes $8.8 billion in short-term loans that have to be paid off by June, and over $120 billion in outstanding bonds and interest that will be paid over decades. The state’s pension fund, CalPers, has $16.3 billion more in liabilities than assets, plus California also faces a $51.8 billion expense for the health and dental benefits of state retirees and future retirees.
California has the lowest S&P debt rating of any U.S. state: “A-”
California has America’s fewest — 7 — emergency rooms per one million people
Source: LA TimesA national report card released last month by the American College of Emergency Physicians gave California a failing grade for access to emergency care. The state ranks last in emergency departments per capita, with only seven per 1 million people, compared with the national average of 20. And it ranks 43rd in the country for Medi-Cal reimbursement.
CA spends $859 million per year on imprisoned illegal immigrants
California spends $500 million each year on wildfire damage and damage control
Get ready for the fourth straight summer of California Drought
Seven of America’s most unemployed cities are in California
Including the record breaking El Centro at 27.3% unemployed.
Nearly 70,000 California homes were foreclosed on in Feb. — the nation’s most
The average home in Merced, CA has lost 63% value in four years
2010 home sales are down from last year. Uh-oh…
THE BIG ONE: California has no central bank and can’t print money to stave off debt
This is everything.The inability of Greece to give itself some monetary flexibility was devastating, and it’s the reason the UK is not facing an acute crisis, despite a very high level of debt. Eventually, California will need a bailout from DC, but while European leaders came together for Greece and the PIIGS, could you imagine our fractious Congress saving Europe — especially if the GOP takes over in November?
