California's Unemployment Insurance Debt

Adding to its ongoing pension crisis, California is also now facing an unemployment insurance fiscal crisis as it borrows from the Feds to pay off its current obligations, and will owe them $16 billion for it by 2012.

The backstory with quotes and links back to bad decisions made under former Gov. Grey Davis that will be haunting next-former Gov. Jerry Brown at my California news and politics blog "City of Angles."

Comments

[Jeffersonian]

Here's a suggestion to Reason as regards the Granola State:
Only write articles and columns that refer to things that aren't completely fucked up there. The default understanding should be that Kollivornia is in a hole and digging at a furious pace (see: Boxer, Brown, Prop 25).

That is all.

[Mike Laursen]

We're going to have a shiny, futuristic high-speed rail line running between Fresno and Modesto! Suck on that, non-Californians!

Oh, wait, that's completely fucked up, too.

[Almanian]

Cali - please send my portion of the repayment of the "Federal Loans" (i.e. "my money") back to me beginning next week. Cash, please.

Love, Almanian

[Virginia]

Option A: ask for loan forgiveness

Option B: raise taxes with simple majority a la Proposition 25

Option C: underfund pension liabilities at increasing rate

Ye Olde Dominion recommends Option C. At least that's the budget smoke & mirrors shenanigans that VA practices.

[NAL]

They're going to try for option A (If Obama gives in to option A, the other 49 states should immediately file for a similar "loan"), and then do option B anyway so they can spend more.

[NAL]

I should mention that I'm going to enjoy watching them crash and burn.

[Virginia]

Option A will be in the form of a multi-state bailout. The Unemployment and State Stabilization Act of 2014.

[Your Favorite Queer]

The Unemployment and State Stabilization and Consumer Prtection Act of 2014.

It's gotta say "Consumer Prtection" somewhere to be a good bill.

Kiss Kiss!
YFQ

[Your Favorite Queer]

Add "O"s where needed.

[sage]

It's weird that you did that twice.

[chromy]

CA voters also passed prop 26 which requires a 2/3 majority on all taxes increases, new taxes, and fees.

It turns out that prop 26 might gum up the works in AB32 also, since fees are lever that will be used to get businesses to lower their emissions.

[sevo]

And some lib friends are shocked to find that they voted for something intelligent!
One went so far as to suggest the effects 'hadn't been explained to her'!
Can you believe it? What's happened to the Proposition Explanation Agency? Must have been taken over by Qwperashuns!

[ola]

"California is also now facing an unemployment insurance (welfare) fiscal crisis."

How for pete's sake is unemployment described as an insurance program?

[Virginia]

FUTA & SUTA. The taxes all employers pay to the state & Feds that eventually go toward unemployment benefits for the employees those same employers had to let go due to overburdening regs & taxes.

or your question has a double-entendre and i completely missed it.

[Ken Shultz]

I wouldn't worry about it too much, guys. Governor Moonbeam's on the case now.

...Jerry Brown's gonna fix everything.

[fresno dan]

I expect that warrants or vouchers will be issued. The warrants will consist of unicorns, the vouchers, whcih will be paid in lieu of tax refunds, will entitle you to the joy of a rainbow (worth 100$).
Hollywood stars will dole out self satisfaction at soup kitchens, which will not actually dispense any soup.
Exhortations about money not buying happiness will be repeated ad nauseum by the rich to the not so rich...

[Old Mexican]

"California taxpayers pay 85 percent of the health care premiums for most active state workers, 100 percent of the health care costs for most state retirees and 90 percent of health care costs for their families."

"Since 2008, California has added over 13,000 employees to the state payroll during this recession."

Pretty soon, gang, it will not be Calfornians ONLY who'll be in the hook. So, grab on to your wallet, because it WILL be raped by the Great Tlatoani to help his friends in the Golden State.

[Kaiser]

It becomes increasingly apparent with time that the only problem with the recall of Gray Davis is that it wasn't conducted earlier.

[Hank]

No kidding. It is a shame that things like this have to happen

[Paul]

Really that he was elected at all. But, it is California.

[Spiny Norman]

Not just elected, but reelected. Then recalled.

[Paul]

The backstory with quotes and links back to bad decisions made under former Gov. Grey Davis that will be haunting next-former Gov. Jerry Brown

I like how there's this new quasi-liberal narrative that Grey Davis was basically right(tm) about everything he ever did, but got swept out due to a tide of populist revolt because of Enron.

[CrackertyAssCracker]

So the Federal Government is loaning money to California right now? I did not realize that.

Can we get that spigot closed ASAP? And yes, I'm only for this in a completely vindictive way since California elected all Socialists to the Senate and didn't legalize pot at the same time. They deserve to suffer.

[Observer]

No worries. The debt will run up... way up! Then the morons in DC who loaned Calif the money will declare it too big to fail. The loan will be forgiven and the bill will be sent to our children and grand children.

[Fleeing Cali]

Normally I wouldn't approve of this, but I think we should levy a 25% extra tax on anyone making more than 400k/year in california. And an extra property tax on all homes worth more than 1M.

Not very libertarian? Yeah. But it's really the rich fuckers in CA that have created the welfare state of CA. The lib alliance in CA seems to be the ultra rich silicone valley/hollywood types combined with the welfare state recipients (including state workers here.)

So let THEM pay for what they have created.

(no I don't really think this is a good idea, but I'd like to punish the mercedes driving, mcmansion living white libs that are destroying the state. Let's see how generous they really are....)