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Discussion Starter · #1 ·
Disabled, Blind People to Lose Disability Payments

California's fiscal future lurched yet another step toward oblivion on Friday as state Controller John Chiang announced he could no longer make payments for services to disabled and blind people who need the money to pay for rent and food.

Chiang said payments would most likely have to be stopped by Feb. 1

http://www.msnbc.msn.com/id/28709883/

and....

Calif. Taxpayers Due Refunds May Get IOUs

If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU.

http://www.msnbc.msn.com/id/28448852/

Some additional articles about California's financial woes:

California Moves Closer to Delaying Tax Refunds, Other Payments

http://online.wsj.com/article/SB123213299391391031.html

Welcome to California's IOU society

http://latimesblogs.latimes.com/laland/2009/01/welcome-to-sout.html
 

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Imho, anyone getting a check in the mail, from the govt., is liable to be left out in the cold, if things head south. Or worse, if we get into a Zimbabwean hyper-inflation situation, the 'fixed income' won't ever catch up with the price of goods. The $1K monthly check (hypothetical) might buy a pack of chewing gum. Sure the govt. would start paying more, by printing more money, making things even worse.

California is in a pickle... I find it amusing that teachers and other govt. employees are wanting to go on strike for raises (or to keep their jobs), when there's no money to pay them what they're getting now.
 

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You notice that some of the first they decide to jettison are the blind & disabled? Why not some of the optional jobs like inspectors that check the gas emissions of cows, or the electronic spy cams on the stop lights?

I'm sure they could cut millions of wasted dollars from the budget if they really had to. Instead they are using manipulation to get a bailout from the hard working taxpayers of other states. What happens when the other states follow suit and go broke? I've heard there are at least 10 other states that are out of money too.

With all the movie stars out there making millions off their movies, the state should be raking in the big bucks so why are they on beggars row? Maybe because they fell into the trap of wasteful spending instead of balancing the budget and saving for a rainy day?
 

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Let the riots begin!

I am in Arizona...and get an adoption subsidy from Ca.
If I lose that, I am in BIG DOO DOO, and while I will be able to hold onto having a HOME (because I am in subsidized housing) there are all the other things that will go by the wayside...including being able to pay for electric and water. Food has already gone by the wayside, because my ex is unemployed, and won't pay child support.
 

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You notice that some of the first they decide to jettison are the blind & disabled?
I noticed, and questioned the same thing. You're probably right on the reasons for it.

Just to be on the safe side, we'll make sure and not pay any excess in this year. I'd prefer to owe in this case, than to be owed.
 

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The money the states need to help the most at risk citizens of our country is a fraction of what has been handed to the international investement banks already.
Our tax dollars have been given to these banks but the gov't won't give it back to us when we lose our job or when our kids are sick.
 

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WV , hilltop dweller
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california has been missmanaged true, but at least some of this must be laid at the illegal alien doorstep for the burden on the medical and school systems...ultimately the blame goes back to the feds who when they won't(not can't) keep them on their side of the border, also won't(definately can't) reinburse california for their loses. Much fairer to cut the methadrone and clean needle programs. And don't get me started on unions that want increases in the face of financial collapse; these people are educators!! Duh, they can read!
 

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Do you think this will make the population disburse into adjoining states or maybe return south of the border?

And the ones stuck there, that have government jobs but no paycheck - what will they do to survive this?

Looks as if a true mess for workers and non-workers alike.

Angie
 

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Angie, This is the standard .gov tactic. They will threaten those most likely to find support.

Kinda like they do when prison funding is cut, they say they will have to have early release.... Of course they only release the sex offenders and armed robbers. Not the folks in for taxes and drug sales.

This will be solved with the printing press, It wont be good for the long term but it will be done. ;)
 

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Big Front Porch advocate
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Maybe and probably so - Stan

but there are folks that have kept the faith by showing up for work, etc and now will the electric company keep the power on? or the water dept? and then possibly no schools as will teachers show up without paychecks?

This may only happen long enough for the extra cash to be printed, but it will definitely impact working folks - and if they were living paycheck to paycheck, well they've just bought a snowball going down hill worth of problems and a ruined credit score that will make anything they need to borrow or buy have a larger percentage of interest, and if they have credit cards those will probably raise to maximum interest - it is a snowball that causes an worse avalanche.

And this does not even address the ones not working and on welfare totally, or disability.

Angie
 
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Discussion Starter · #16 ·
I'm thinking that the federal gov't will bail them out, but to do that, they will print more money, which will devalue the dollar more, which will impact all of us.

The more bailing out that goes on, the more we will all hurt, through accelerated inflation, etc.
 

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There is certainly room in this discussion for politics and how they affected this situation. But it's an across the board discussion. The issue isn't about republicans or democrats, but goes beyond that.

Big Government (Different than constitutional government I think), and it's proponents always promote "Big Government" solutions. The argument usually goes... "Who can solve this BIG problem except the federal BIG government???

The problem is, though, that Big Government creates those BIG problems... and the solution isn't going to be more BIG Government.

It's a falsehood (IMO) to suggest that this is an "either/or" thing. Either we have BIG government or everyone dies starving in the streets.

The quickest solution comes when the states, that offer programs like sex-changes for state employees, studies on the cow farts, excess regulations on everything and a bureau to enforce it, ad infinitum, readjust their own budgets.

Yes, that will mean budget cuts. But states have to figure out where they are going to do that. If they were truly trying to be effective, it would start (just for the sake of setting an example) with the state government (their house/senate/governor/and all state employees) getting pay cuts. You know, sort of how the congress demanded that the CEO of GM take a cut. He went down to $1.00 a year or something crazy like that. But they aren't really interested in making it work... but doing what Stan said.

Extortion. That's what this is all about. It's the new American way. It's dishonest too, but we need to call them on it. Tell them to lay down their cards.

I think when faced with riots in the streets, vs. highly paid "public servants" and frivolous expenditures of money... that they may see the light.

The problem is that most Americans don't have the fortitude to see the bluff through and to make them lay their cards down.
 

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Mountaineers are free
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It is really over, if California is telling the truth... Once one state, then another go belly up, the printing presses will drive us into oblivion. There are a lot of folks running around blind in this country, some of them are here on HT everyday saying "This will never happen". It is not a matter of if, it is a matter of when... I'd be willing to bet that selling treasury bonds to foreign governments is just about a thing of the past. But the Government as a whole thinks we can spend our way out... Or is that print our way out.

If you have a hand pump on your well and food in your barns, gardens and trees you are about to become the most popular person in your community.

Angie... In order to keep this civil and on topic (S&EP related) here is my advice... Go shopping, spend money buy food, food and more food, garden tools, heirloom seeds, small livestock and feed for them... Invest in wool blankets and hands tools for geting wood for the wood stove, etc... Those who are waiting for someone to save them are about to be cold and hungry... The evidence is there is you are paying attention and have an open mind to see it... Schiff and others are speaking loud and clear, but no one wants to believe it can happen in America.. It not only CAN happen... It IS happening if you are watching with open eyes.
 
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Discussion Starter · #19 ·
There is certainly room in this discussion for politics and how they affected this situation.<SNIP>
This particular discussion is about the results, not the cause. The results is what S&EP is all about.

How will many 1000's in California survive suddenly being cut off from funding? How will this affect the rest of us? Is there something more each of us can do to protect ourselves against the possibility of other states facing this same problem somewhere down the road?
 

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According to one of the articles, the people taking IOU's instead of paychecks are going to be the highly paid legislators and judges. Workers will be taking IOUs for tax refunds. This has happened before in CA, and is related to Schwartzenegar vetoing a budget plan by the Congress. He has to approve a plan before the comptroller can issue checks. But this is more due to the fact that bond money has dried up. Foreign countries are cutting back on buying up our debt. But only tin foil hatters believed this was going to happen. There is still time for this to turn around.

What are the chances the media is making it sound worse than it really is?
 
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