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California Residents, read this.....

Discussion in 'The Lounge' started by Bubba Ray Boudreaux, Dec 21, 2002.

  1. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    The tarnish on the Golden State

    By Steven Greenhut
    Senior editorial writer and columnist for the Register

    Perhaps the eternally warm weather, the rugged coastline and the
    luscious mountain views are warping the
    minds of people who ought to know better. The state's budget deficit is
    $34 billion-plus, electricity and workers'
    compensation costs are skyrocketing, and a spate of anti-business
    legislation is about to go into effect. Yet
    the electorate remains in La-La Land, apparently unaware of what the
    crisis will mean for its lives and
    pocketbooks.

    Even Republicans believe that, one day soon, voters will wake up and
    elect sensible leaders to positions of
    authority. I hope the optimists are right, but count me as skeptical.

    California is facing the same crisis faced by every socialist country.
    The basic system - punish the rich, lavish
    benefits on the politically powerful and centralize power in the hands
    of the most craven politicians - cannot go
    on forever. At some point, those with the money who create the jobs and
    pay for this whole racket leave for
    better climes, which explains why East Germany built a wall to keep
    people from going.

    By contrast, California is what one friend calls a golden prison. Our
    freedoms are eroding, the quality of life is
    disintegrating and the state takes an increasing bite out of our
    earnings. But, what the heck, it's December and
    the temperature is in the 60s.

    So most of us stay. But even nice weather has its limits, as the state
    learned in the 1990s when nearly 2
    million more people fled the state than moved here from other states in
    the face of an economic downturn.
    (That didn't stop people from coming from other countries, given that a
    tanking California economy is still
    better than rural Mexico on a good day, but that's another story.)

    Before you chalk this up to the rantings of a "glass half-empty"
    libertarian, I'd suggest paying attention to the
    views of someone who really knows the economic situation. Democrat
    Kathleen Connell, the outgoing state
    controller, in a recent interview spelled out a scenario that's not much
    different from what I'm saying.

    "It all goes back to government agencies that have grown 47 percent,"
    she said. "The question is why. How is
    that possible over eight years? It's a stunning factor. ... The
    government chooses to just grow. The result is this
    immense budget crisis."

    The Davis administration, of course, has spent money like a maniac, but
    the problem started under the Pete
    Wilson administration.

    Noting that her department grew at 0 percent during her eight years in
    office while state government grew at 47
    percent, Connell said government spending simply needs to be restrained,
    and that zero-based budgeting
    must be adopted.

    "On the revenue side we must be very cautious," she said. Connell fears
    the proposal by many Democratic
    legislators to increase income taxes on the wealthy. Already 62 percent
    of the taxes are paid by 5 percent of
    the people, and these high payers use few services. "You will have
    leakage. These people will leave. ... It's
    killing the golden goose."

    California is a dynamic, entrepreneurial economy, and dramatic increases
    in income taxes on those high net
    worth individuals who drive the economy will cause the situation to
    spiral. Already, she is witnessing
    increases in businesses incorporating in neighboring states, and talk of
    leaving has replaced talk of home
    values at social events among the high-income people the state depends
    upon to keep its operations going.

    The crisis is so severe that it won't go away anytime soon, she said.
    "It's not a one year or two year sequence
    and then the forests will bloom."

    As Connell sees it, the enormous capital-gains revenues that California
    recently depended upon so heavily
    will not rebound ... ever. Changes in federal rules for stock option
    plans will change the nature of
    compensation in Silicon Valley, and that will reduce state tax revenues.
    Furthermore, the older, high net-worth
    population is retiring or leaving, and is being replaced by lower
    net-worth people who pay little if any state
    income taxes. Things will only get worse.

    Furthermore, even as California politicians have engaged in a massive
    spending spree, California voters have
    approved an excessive amount of debt spending. California, she said, has
    become over-leveraged, which
    means that less money will be available to pay for the real
    infrastructure needs faced by the state.

    Rather than invest in important infrastructure, the Davis administration
    spent the windfall on salary hikes for
    prison guards and other unions, and on locked-in state spending that
    will not benefit most Californians. This
    is so, despite the state's crumbling infrastructure that has not kept up
    with dramatic population growth.

    Connell sees an increased reliance on pay for services. People are going
    to have to pay fees they are not
    used to paying. They are going to have to get used to worsening traffic,
    increasing utility costs and poorer
    government services. "We're failing to provide the skeletal services."
    She thinks voters are in denial and won't
    wake up until they start paying vastly more for significantly less. They
    will, she believes, at some point hear the
    giant thud and wake from their stupor.

    I certainly hope so.

    California already has the most stringent environmental rules in the
    country, which impacts business creation
    and expansion, and makes home prices the highest in the nation. Recent
    anti-business actions - paid family
    leave, increased worker's compensation costs, Gov. Davis' bungled energy
    contracts which are leading to
    higher electricity costs - "are all signposts to companies that it's a
    more difficult journey here in California."

    She advocates cutting government, and increasing tax revenue with a
    sales tax on services, as a means to
    spread the tax bill out over more people. I don't favor any new taxes,
    but she's right that socking it to the rich will
    only backfire.

    Here's another problem: Voters replaced Connell, an unabashed defender
    of the taxpayer and fiscal truth
    teller, with Steve Westly, a liberal activist with no real financial
    background, and a desire to use his post to
    increase government spending. As Connell puts its, getting "lucky" in a
    stock sale is no background for the
    controller's office.

    Connell was an independent fiscal voice who stood up to the governor
    over the costly energy contracts he
    signed at the height of the electricity crisis, and insisted -
    correctly, as we now learn - that the governor's
    budget was not balanced.

    I'm not sure if I'm more upset about the budget crisis caused by
    government officials who spent other people's
    money with wild abandon, or that no one will be there to demand a full
    accounting as the scandal unfolds.

    My best advice: Keep on the look- out for a good job in Arizona.
     
  2. Chaz88K5

    Chaz88K5 1/2 ton status

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    we have seriously been considering moving the company to nevada...just to get away from all the regulations...but we are afraid the company would not survive the move...would loose too many critical people that has been there well over 25 years and knows every part to everything we build like the back of their hand...so not sure how that would work
     
  3. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    How many people would move with the company?
     
  4. ChevyCaGal

    ChevyCaGal 3/4 ton status

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    Eventually it will hit the fan. When it does it's going to suck big time. Only reason I stay now is I just got a house. Otherwise I'd moved up to either Portland area or near Spokane to get away from this. I still might. The people who run this state are for the most part (I'll say 98%) are idiots or out to suit their own needs. Basically heck with anyone who doesn't benefit them. It's old, tiresome and ruining us...
     
  5. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    What is the housing situation like up there? My mom sold their crackerbox in the East Bay for $225K. When I was up there a couple of weeks ago, my buddy said his old house could go for $300K easy, and it's not even up to code compliance.

    It's gonna get worse with Davis and his Democrap buddies in charge. The counties are going broke over the state mandated BS and the last I heard, the tag reg fees got doubled, is that true? I'd be paying $200 for tags in March. And raise taxes also, I wonder how those states without sales tax and income tax survive? /forums/images/graemlins/grin.gif

    There needs to be a serious shakeup in the state leadership and get these losers out.
     
  6. chevyfumes

    chevyfumes Court jester

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    Watch for the muzzleflash!
    </font><blockquote><font class="small">In reply to:</font><hr />
    Otherwise I'd moved up to either Portland area or near Spokane to get away from this. I still might

    [/ QUOTE ] Sorry were full.... /forums/images/graemlins/smirk.gif /forums/images/graemlins/thumb.gif
     
  7. Chaz88K5

    Chaz88K5 1/2 ton status

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    </font><blockquote><font class="small">In reply to:</font><hr />
    How many people would move with the company?

    [/ QUOTE ] well we have 46 people workin in the shop now...and i really dont think any of em would be willing to relocate...the important ones that have been there for ever and really know whats goin on...they are close enough to retirement that i dont think they would move either...so about the only ones that would go would prob be, myself, my dad, the general manager..and possibly the shop forman...but i really dont think he would be willing to go...and we would loose all our truck drivers all in one shot..so i think it would be a bad business move...so i think we are almost forced to stay here in this [censored] hole
     
  8. MudNurI

    MudNurI 1/2 ton status

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    </font><blockquote><font class="small">In reply to:</font><hr />
    I wonder how those states without sales tax and income tax survive?


    [/ QUOTE ]

    I think it's called "leval funding" and federal opportunities. I'm not sure how much longer NH is going to be able to go down this road- with the school funding issue in the supreme court etc.. but it's worked so far...
    then again- if you took away the regulations you guys have, think of the people that would be out of a job- all those guys getting paid big bucks to make sure your i's are dotted etc... the salary of them alone probably equals the state budget in NH.

    Brandy
     
  9. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    </font><blockquote><font class="small">In reply to:</font><hr />
    if you took away the regulations you guys have, think of the people that would be out of a job- all those guys getting paid big bucks to make sure your i's are dotted etc... the salary of them alone probably equals the state budget in NH.

    [/ QUOTE ]
    Good point, but it would save the state so much money. And of course Davis cowtows to the unions, right after he was elected, he gave the CHP and CDC a big fat pay raise and I'm not talking peanuts either. We're talking for an officer at five, six years will be pulling $8K a month. Now I'm not saying they don't deserve it, but that's a load of cash. The highways are falling apart and even with the state teachers union whining and crying about more money, the education system sucks big time, so there is even more wasted $$$$. And of course we have all the illegal alien bloodsuckers. There's people who's job title is "translator," just because someone refuses to learn the language, so the governments have to have these people available. The system is so whacked out here and it's going down. Kind of like being on the Titantic. /forums/images/graemlins/rotfl.gif
     
  10. ChevyCaGal

    ChevyCaGal 3/4 ton status

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    Housing is insane here. My house is in a decent area. Not by far in a rich neighborhood and it was appraised for $200k back in September (back when it was clean since then my yard looks like crap). It's 1200sf, 1 1/2 bath, original hardwood floors (I have carpet over them now though), central heat and air, single car garage, 2 fire places, very small work shop, covered patio and new windows, few other little things. It's like I said nice but not the best... go figure on that price. I live about 200 feet from a park so maybe that adds value? Anyhow if it wasn't paid for and protected by Prop 13 I'd sold it (maybe even rented it) and left. But seeing how it is and they did own it for 50+ years here I sit.

    Oh and chevyfumes, Portland area is not full. My friend just called me about a house for sale in Aurora I was looking at... /forums/images/graemlins/thumb.gif
     
  11. landsmasher

    landsmasher 1/2 ton status

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    </font><blockquote><font class="small">In reply to:</font><hr />
    Kind of like being on the Titantic.

    [/ QUOTE ]

    And we all know what happened there! The first people in the limited aomount of life boats were the crew... They were also the first people who knew there was a problem. And even though the captain knew there was huge iceburgs out there, he just kept on going full speed ahead. Sound familiar?
     
  12. chevyfumes

    chevyfumes Court jester

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    Watch for the muzzleflash!
    </font><blockquote><font class="small">In reply to:</font><hr />
    Oh and chevyfumes, Portland area is not full. My friend just called me about a house for sale in Aurora I was looking at...

    [/ QUOTE ] She lied.... /forums/images/graemlins/tongue.gif
    Just within the last 6 months Vancouver (washington) has become a giant traffic jam.... /forums/images/graemlins/frown.gif thats the reason we're movin' to the country, which is almost as bad.... /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif /forums/images/graemlins/angryfire.gif
     
  13. BigMac

    BigMac 1/2 ton status

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    insane housing is my rental unit. It's 950 sq ft flat top slab floor. 350,000 smackeroos. It's in the ghetto too.

    silicon valley prices.
     

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