GrumpyCatFace wrote:"Personal Income Tax collection deficit" is not a state budgetary deficit. Cheap propaganda.Speaker to Animals wrote:http://www.breitbart.com/california/201 ... o-crumble/
Time required to locate information: ~3 seconds.
What in the fuck is that supposed to mean??Speaker to Animals wrote:“Yes, the state’s budget is balanced if you are looking at what they are required to spend cash on this year, but not when you look at their expenses,” [/b]said Gabe Petek, a credit analyst with Standard & Poor’s.
None of this implies 'functionally bankrupt'. They don't have money allocated for expenses that they've legislated for themselves. That's a pretty far fucking cry from 'can't pay our debts'.http://www.sfchronicle.com/politics/art ... 812264.phpProspect of taxes sours budget support, poll finds Lawmakers stand and greet Gov. Jerry Brown as he walks across the floor of the State Assembly to deliver the annual State of the State address at the State Capitol in Sacramento, Calif. on Thursday, Jan. 21, 2016. Jerry Brown says state must pay debt, new taxes on horizon Governor Jerry Brown arrives to delivers his State of the State speech
The high debt and unfunded liabilities have resulted in the state’s rating lagging behind other states, Petek says. California saw its bond rating rise last year from A+ to AA-, the highest level the state has had in 14 years. Good bond ratings are a sign of a strong budget and financial management and allow states to pay lower interest rates when selling bonds.
“Compared to other states, though, California has one of the lower ratings,” Petek said.
And the reason is clear, he said. It’s California’s debt and liabilities that are concerning financial analysts, particularly the state’s rapidly growing unfunded retiree health care costs, which grew more than 80 percent over the past decade. California has promised $74 billion more in health and dental benefits to current and retired state workers than the state has put aside.
If you are in credit card debt to the tune of ten times or more your annual income, and all you can manage to do is pay the interest each month, then you are functionally bankrupt. You can go to a bankruptcy court and you will get that debt discharged because there exists no practical means for you to pay the debt. That's California right now.
They are over 400 billion dollars on the hook for unfunded liabilities (and growing). As their welfare state expands, those unfunded liabilities will grow.
Detroit was merely the canary in the coal mine.
No real way to fix it other than to renege on those pensions.
