Thursday, January 29, 2009

Stimulate the economy by encouraging California's budgetary irresponsibility?

We all know why California is in trouble. They spent more then they collected in taxes. They financed crazy left wing programs including stem cell research and financing social services for illegal immigrants who do not pay any taxes. In short, California became so indebted, they were insolvent.

An in depth recap of the mess California allowed it self to dip into:
California Implodes In Multiple Ways
Sharing The Pain In California
Schwarzenegger Needs To Face Reality: California Is Insolvent

So Obama steps in, and gives away 11 Billion Dollars, bad behavior rewarded - what are the chances we shall return to this junction in the very near future? The federal tax payment, all of us - are to pay for California's social experiments and illegal immigration mess.

It get's worst. 11 Billion covers only 25% of the debt. California is a big tax payer's hole. 11 Billion is Only 25%!

LA Times:Economic stimulus package has a potential windfall for California government
The state could receive $11 billion, enough to wipe out about 25% of its budget shortfall.

Reporting from Washington and Sacramento -- The economic stimulus package congressional leaders are drafting would wipe out nearly a quarter of California's budget shortfall, a potential windfall that could help end the impasse over how to close the nearly $42-billion gap.

The House bill, which is likely to be voted on next week, would bring the state more than $11 billion in healthcare and education money that could go directly to reducing the deficit through mid-2010, state officials learned Thursday night.

"This takes a big bite out of the state's budget gap," said Jean Ross, executive director of the California Budget Project, a Sacramento-based think tank. "It is better news than many of us had anticipated."

The money would come from the $825-billion stimulus package that President Barack Obama has made a top priority. The package would also increase spending in California into 2011 for various federal programs, such as job training and food stamps.

The amount of money slated for California could change, however. The Senate is preparing to write its own version, and Republicans are increasingly objecting to the plan, saying it would not do enough to stimulate the economy.

But congressional Democrats hope to send a bill to the White House by Presidents Day.

"The president asked for action, swift and bold. That is what we are doing," House Speaker Nancy Pelosi (D-San Francisco) said Thursday. "The American people are in a desperate situation."

This crap sandwich snow ball has begun people. It's just the beginning.

And the madness continues:
Hotair: New California pump rules squeeze small station owners out
Gateway Pundit: Generational Theft Act Will Re-Start Trade Wars-- Expand Welfare State

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