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Dems drive Calif. into the ground

Published 9:27am Tuesday, November 27, 2012

I read some analysis of the recent elections showing the California vote went around 65 percent Democratic, and the Republican Party is becoming irrelevant in that state. The warning was that Republicans had to get with the times on the issues or they would become irrelevant in the nation.

I would suggest that maybe the country should pay attention to California’s economic condition and its relationship to the Democratic Party’s promises to get those votes. California is one of the top five states in tax rates in the nation, but still has a $335 billion budget deficit when deferred payments and unfunded medical and retirement benefits are figured into the total. Its cities are declaring bankruptcy. It has asked for federal government help? That means the states that have paid their debts are being asked to pay for California’s financial folly. Sound like Greece? Is this the future United States of America under Democratic Party rule?

 

John Forman

Albert Lea

  1. Thomas Delano

    John, you’ll find Alabama has a similar ratio favoring Republicans. That state has some of the worst education statistics in the nation, as well as high poverty rates and a very low health rating. Shall we extrapolate then, that by party association alone, a future United States led by Republicans shall be one that is uneducated, impoverished, and physically incapable of taking care of itself?

  2. Randy Kruckeberg

    One cannot deny if taxing and spending beyond their means was a sucessful means of governance the commiefornia should be booming but it is not, businesses and people are leaving that state to relocate to business frendly and tax freindly states. One cannot tax themselves to prosperity I have lived in commiefornia and I was glad when I escaped the laws and amount of taxation are truley mindboggling.

    Three California cities — Stockton, San Bernardino and Mammoth Lakes — have filed for bankruptcy so far this year. Moody’s said they are not likely to be the last.

    “To summarize, we expect … more bankruptcy filings and bond defaults among California cities reflecting the increased risk to bondholders as investors are asked to contribute to plans for closing budget gaps,” the report said.

    It noted that the municipal bond market has long been characterized by low default rates and relatively stable finances, an outlook that is beginning to change as bankruptcy becomes a tool for cash-strapped cities. That requires Moody’s to reassess the financial position of all California cities “to reflect the new fiscal realities and the governmental practices.”

    The report also noted the potential for ratings downgrades to fiscally distressed cities, counties, school districts and special districts throughout the state.

    Lower bond ratings will increase borrowing costs for those entities at a time when many of them are struggling financially because of a steep drop in tax revenue.

    “Every city in the state is looking on with some concern,” said Dave Vossbrink, spokesman for the city of San Jose. “Governments of all kinds borrow money, usually to build infrastructure that lasts a long time. It’s like getting a mortgage to build roads, a sewage plant, whatever it might be. If the investment community perceives greater risk, you may not be able to borrow as much for public purposes.”

    San Jose has shuttered libraries and laid off police officers to cut costs, and residents voted overwhelmingly this summer to cut the pension benefits they give city workers. But while the city is taking steps to reassure investors of its fiscal health, there is frustratingly little it can do to control larger fears about the municipal bond market, Vossbrink said.

    To use california as a model for sucesful government shall we say is not very sucessful.

  3. john Forman

    Alabama is one of the poor states that california is looking for help from to pay its’s debt so how bad does that make California? Alabama state debt $1,800 per person Californis debt $13,000 Per person. By your reasoniong the only problem Alabama has is it’t unwillingness to saddle there grandkids with more dept.