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Schwarzenegger Threatens to Shut Down the State

willie_pelote.jpgBy Willie L. Pelote, Sr.
Assistant Director ASFCME

With California just a few days away from having to issue IOUs to pay its bills, California Governor Arnold Schwarzenegger is threatening to shut down the state rather than agree to $2 billion worth of new taxes on cigarettes and alcohol and oil companies that Democrats have proposed to help close the Golden State's $24 billion budget deficit.

This shortsighted and fiscally irresponsible stance is out of step with the majority of California voters who support these taxes and a tad hypocritical, since Schwarzenegger himself proposed these very solutions at the end of last year.

If Schwarzenegger believes that it is possible to balance the state budget without these revenue solutions, as paltry as they are, then he just doesn't understand economics.

Should he actually follow through on his threat to veto the Democratic plan, which also includes $11 billion worth of cuts and $10 billion worth of accounting maneuvers, blame for shutting down the state would rest squarely on his shoulders.

While Schwarzenegger has been prone to using threats, coercion, and other ham-fisted approaches to realize the vision of a state with no capacity to provide social or educational services to the citizens of California, it is unclear whether he actually has the courage to take the blame for shutting down the state.

The only way to win this game of budget chicken and avert the prospect of California taking its place among the Third World, an outcome that corporatists of both political stripes have been planning for decades, is for the Democratic majority to concede nothing and to place a budget on Schwarzenegger's desk that includes new revenues.

This will put Schwarzenegger in a position where he will either have to make good on his threats or look like a complete hypocrite. If past performance is any indication, he will find an excuse to sign it.

Willie L. Pelote, Sr. is an Assistant Director of the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO. AFSCME’s 1.6 million members provide the vital services that make America happen. With members in hundreds of different occupations — from nurses to corrections officers, child care providers to sanitation workers — AFSCME advocates for fairness in the workplace, excellence in public services and prosperity and opportunity for all working families.

Posted on July 01, 2009

Comments

$10 billion worth of accounting maneuvers.

Willie needs to learn about what he is talking about before he opens his mouth. Anybody that has ever run their own business knows accounting maneuvers do not fix the problem. California has a spending problem and it is time to pay up. Has anyone bothered to look at the stats on all the businesses that were going to locate in California but decided to go elsewhere? They did a survey with the fortune 500 CEO'S and asked them what states they would not locate to; California and Michigan were there answer. They don't have to come here. How long can we keep having a negative business environment?

If all the businesses that were going to move here did, we wouldn’t have a budget problem. Unless we wake up we are in big trouble. If we don't have jobs we have nothing.

Posted by: jimmy at July 1, 2009 06:43 AM

THE ARTICLE SAID '115 MILLION' CUT FOR DENTAL CARE?
CONSIDER THIS:SENIORS ON CALIF. DIISABILITY OFTEN HAVE BAD TEETH THAT NEED TO BE PULLED AND SECURE DENTURES TO EAT!!
ROTTING TEETH CAN CAUSE ARTERY CLOGGING-HEART ATTACKS-ABCESSES!! SO HOW MUCH 'PENNY-WISE-POUND-FOLISHNESS' IS THE LAZY COULD CARE LESS,NO RESEARCH-DONE OF THE REPURCUSSIONS-GUV,ELIMINATING VIA THE PALTRY SUM OF THE ABOVE FIGURE?
I'D SAY THE FOLKS WHO NEED HELP WILL POSSIBLY DIE....AND NEED HEART SURGERY,JAWS REMOVED FROM INFECTIONNS 'GONE-WILD'....FROM IMMEDIATE DENTAL CARE.THAT WILL COST THE ALREADY CLOGGED WITH ILLEGALS- EMERGENCY ROOMS SEVERAL HUNDRED MORE MILLIONS!!AND THE FED-SOON INTENDS TO CUT OF SOME EMERGENCY FUNDS TO ALL HOSPITALS ?THEN WHERE THEY GO?
AND HOW ABOUT NUTRITION,WITH NO TEETH ? DOES 'GUMMING-IT' FIGURE INTO THE EQUASION? WILL PROPER NUTRITION CAUSE MANY OLD FOLKS TOO CARVE THEIR OWN WOODEN TEETH,LIKE BEN FRANKLIN WORE,JUST TO GET SOME CHEWING FOOD ITEMS- DONE? APPEARS WE ARE HEADED BACK TO THE 1700S HEALTH-CARE SYSTEM.THANKS LAWMAKERS!YOU-AL ARE REAL CHAMPS.
DOES PULLING TEETH STILL COVER-INCLUDE GETTING DENTURES? THESE INFORMATIVE ARTICLES DO NOT MENTION MEDICAL SUPPORT FOR DENTURES.MORE FOLKS SO 'IN THE DARK'.
AS ONE OF THE ABOVE'VICTIMS' OF THIS 'READY TO BE RECALLED' GUV,PETITIONS NEED TO BE SIGNED AND IMMEDIATLY APPLIED,JUST LIKE THEY REMOVED-QUICKLY THE HONERABLE GRAY DAVIS GUV,WHO COULD HAVE,LIKLEY DONE TEN TIMES THE BETTER JOB,THAN THE TERMINATOR/ACTOR,POSING AS A 'GUVINATOR'.RESOLVING THIS RUTHLESS DENIAL OF BASIC MEDICAL SERVICES,WILL BE HIS DOWN-FALL!!
HERES WHAT I WILL BE FORCED TO DO,IF MY FEW REMAINING FIVE UPPER ROTTING TEETH ARE NOT YET-ALLOWED TO BE PULLED. I WILL CONTINUE TO USE 'SILVER WATER TO KEEP THE INFECTION AT BAY,FOR AS LONG AS POSSIBLE,THEN GET ANTIBIOTICS FOR A FEW MONTHS,IF I CAN STILL GET THEM FROM THE EMEGENCY ROOM. SILVER WATER CAN AND DOES DO THE JOB OF ANTIBIOTICS,ALONG WITH GARLIC AND OTHER NATURAL SUPPLIMENTS,TO STAVE OFF INFECTIONS-PAIN,AS THIRD WORLD FOLKS DO THIS,AND ACTUALLY PULL THEIR OWN TEETH,SINCE NO ONE CARES.
THEN,IF THINGS GET REALLY-BAD I WILL GO TO AN DENTAL CLINC IN ALGONDLES MEXICO,BUT LIKLEY USE MY CREDIT CARD TO SPREAD OUT MY TOTAL BILL.OF COURSE,IF I CAN'T PAY ON TIME,MY CREDIT CARD WILL NOW BE CANCELED,AS JUST GOT THIS NOTICE OF 'CHANGE' FROM MY BANK ABOUT THIS.IT APPEARS THE BANKS ARE AWARE OF WE POOR FOLKS PROBLEMS-NO MEDICAL.IF-ONLY I COULD THEN 'BILL' THE STATE MEDICAL PROGRAM FOR THIS,THE STATE WOULD SAVE 75% OF THE COSTS,IF DONE VIA MEXICAN BORDER TOWN DENTISTS!!!!
'STUPID-IS-AS-STUPID-DOES' SO SAYS FORREST GUMP,AND THE GUV + LEGISLATURES HAVEN'T A CLUE TO THE FUTURE DAMAGE-DONE,WHEN EMERENCY ROOMS ARE FILLED WITH ROTTING-TOOTH-MEDI-CAL CARD HOLDERS. AND CONSIDER ALL THE MEDI-CAL DENTAL CLINICS THAT WILL CLOSE-DOWN: HOW WILL THESE CLINICS EVER-AGAIN-OPEN ORGANISE,IF THEY WERE RE-INSTATED FOR DENTAL/MEDICAL? I NOW GET 80 DOLLARS LESS FOR DISABILITY,AND REALIZE THAT MONEY COULD HAVE GONE TO PAY MY CREDIT CARD MEXICAN DENTAL BILL,BUT-NOW....SENSELESS-BUDGET PINCHING-VIA PENNIES BY THE GUV WILL ALSO CAUSE FOLKS TO BE 'PAINTED INTO A FINANCIAL CORNER'!!
THE REPURCUSSIONS WILL BE DISASTOUS!
SHALL WE ESTIMATE THE FUTURE COSTS? IT WILL BE MORE THAN THE '115 MILLION' SAVED AS CUTS,LIKLEY BY TENS OF TIMES-PERHAPS A BILLION,NOT TO MENTION 'MATCHING FUNDS'!
WERE SCREWED......

Posted by: DAWK at July 1, 2009 07:44 AM

Good point made by Dawk. Isn't anyone in Sacramento using their heads in making these cuts? Gov. S reminds me of that N. Korean leader and if this continues on, California will be just like N. Korea. I think the govenor is just hoping all the poor either die or move out of state.

Posted by: peggy at July 1, 2009 08:37 AM

American Federation of State, County and Municipal Employees

Unlikely to be part of the solution, very much part of the problem.

Posted by: George Hanshaw at July 1, 2009 08:42 AM

Pelote you are an idiot.

Posted by: Timothy at July 1, 2009 08:54 AM

It's John Calvin's finest hour... I wish demagogues would cease using cliche's like "class warfare" that's too superficial, which is understandable given the superficial nature of American culture, but the more accurate nominative for describing what's going on in CA, and indeed across America, is "Chosen" versus "not chosen" .. chosen(and thus entitled) is the lynch pin of the Republican ethos.. as Calvinists, they believe the "chosen" are obligated by faith to avoid transferring the bounty bestowed upon them to the "not chosen" for to do so violates their covenant established by their being God's "chosen." Thus to call it class war fare is an insult to the chosen as it goes far deeper into religious belief... and using a label like "class" to describe dislocations of wealth is a supreme insult, since their claim to their "God's bounty" is celestial in origin. Thus, the use of a terrestrial label like "class" is viewed as religious persecution, reducing their religion to Jessie's "gutter" status. I wish all the "not chosen" (in the Republican/Calvinist definition) understood the insidious nature of their rhetoric that says "granny" can't get dental care... or Jorge can't get an education... or that homeless Vietnam vet on crack cannot have shelter. That's is unfortunately the America we live in... founded by a hand full of devout Calvinists (IE founding fathers... only 25% of the populace supported the revolution.. the other 75% were not "chosen" and saw it is extending Tory rule)... especially the Washington family.. then through the Reagan family.. down to the Bush family today... they all are devoted Calvinists. Republican party was founded on John Calvin theology.. it's "bible" is not King James, it's Adam Smith's "Wealth of Nations" ... Smith morphed his Calvinist beliefs into the social construct we live under; known as "free market capitalism" where only the chosen were created to prosper. No, I am not a commie pinko liberal.. I hold an MBA in addition to other degrees. I believe in a "fair market economy." One than shares the bounty among all us carbon-based life forms.. here on the turd [SIC] planet from the sun. Calvin was not Jesus.

Posted by: Reverend Mike at July 1, 2009 09:02 AM

I work with individuals with developmental disabilities. They attend day programs and work 30 hours a week. They earn anywhere from $80.00-$400.00 a month based on their ability. Almost half of their earnings are deducted from their SSI payments. They contribute as much as they are able to our society. Those in our supported living service program pay for their own rent, bills, food, and all their other living expenses out of their limited SSI income and work income. They supplement their food needs through food banks and other generic resources.

Individuals with diabetes need podiatrists for foot care and to cut their toenails so they don't risk infection and possibly lose their limbs. Most of the individuals I work with are unable to cut their own toenails. If they do they usually cut them wrong and it results in ingrown toenails, which requires surgery to correct. Since they can no longer see a podiatrist they will be forced to go to the emergency room for treatment and possibly be admitted for infections and complications. We are not permitted to assist them since it is considered a medical procedure and we offer non-medical training and assistance.

Individuals with diabetes also need yearly eye screenings and treatment to prevent blindness.

These are serious issues. Making blanket cuts to Medi-cal without considering those with special health care needs is irresponsible and will end up costing the state much more in ER and hospital care.

Dental care has already been covered in another comment so I won't add to that.

I would be willing to pay extra taxes if it means saving limbs, eye sight, and the lives of dependent adults who will suffer great harm from these cuts.

Posted by: Robin at July 1, 2009 11:01 AM

I hope he Don't cut the program off, wer all need it.my son is a guad and he needs around the clock care. and I would lose my medical'and would out on the street,because we would have no way to pay rent.me being Diabetic ,and on mant meds.


I'm really worried for us.

Posted by: Margaret Weber at July 1, 2009 11:06 AM

I hope he Don't cut the program off, wer all need it.my son is a guad and he needs around the clock care. and I would lose my medical'and would out on the street,because we would have no way to pay rent.me being Diabetic ,and on mant meds.


I'm really worried for us.

Posted by: Margaret Weber at July 1, 2009 11:11 AM

I hope he Don't cut the program off, wer all need it.my son is a guad and he needs around the clock care. and I would lose my medical'and would out on the street,because we would have no way to pay rent.me being Diabetic ,and on mant meds.


I'm really worried for us.

Posted by: Margaret Weber at July 1, 2009 11:12 AM

California Governor Arnold Schwarzenegger is threatening to shut down the state rather than agree to $2 billion worth of new taxes

Yes, and he will too!

Why do the dems try to bluff, when they aren't even holding cards? The guys a lame-duck - he can do anything he wants, and you guys are just making things worse by trying to provoke him. Your stupidity just cost us $3 billion that could have been cost-shifted from this FY. The shortfall is now growing as well - approaching $26 billion.

You're only making this situation worse.

Posted by: George Hanshaw at July 1, 2009 11:12 AM

I hope he Don't cut the program off, wer all need it.my son is a guad and he needs around the clock care. and I would lose my medical'and would out on the street,because we would have no way to pay rent.me being Diabetic ,and on mant meds.


I'm really worried for us.

Posted by: Margaret Weber at July 1, 2009 11:23 AM

Politicians use the word revenue so easily. Revenue is tax. What they don't understand is that we are taxed-out. My revenue comes from the profits from my work...but I have no work, no profit, and no revenue to give to the politicians. As Arnold says, live within your means, and remember your means come from us.

Posted by: J.R. at July 1, 2009 01:27 PM

I see the flatheads and haters from the Sacbee comments have found their way here.

Long story short, GAS is a thug with further political aspirations.

Posted by: George Lowry at July 1, 2009 01:27 PM

Politicians use the word revenue so easily. Revenue is tax. What they don't understand is that we are taxed-out. My revenue comes from the profits from my work...but I have no work, no profit, and no revenue to give to the politicians. As Arnold says, live within your means, and remember your means come from us.

Posted by: J.R. at July 1, 2009 01:28 PM

Politicians use the word revenue so easily. Revenue is tax. What they don't understand is that we are taxed-out. My revenue comes from the profits from my work...but I have no work, no profit, and no revenue to give to the politicians. As Arnold says, live within your means, and remember your means come from us.

Posted by: JR at July 1, 2009 01:30 PM

Politicians use the word revenue so easily. Revenue is tax. What they don't understand is that we are taxed-out. My revenue comes from the profits from my work...but I have no work, no profit, and no revenue to give to the politicians. As Arnold says, live within your means, and remember your means come from us.

Posted by: JR at July 1, 2009 01:32 PM

I'm surprised that no disabled person has challenged Schwarzeneggger to a legitimate bout in the boxing ring. Winner could get all the loser's assets and income, and of course dental coverage. Might be embarrassing for California's governor to face such a challange.

Posted by: Mac at July 2, 2009 03:12 AM

I'm surprised that no disabled person has challenged Schwarzeneggger to a legitimate bout in the boxing ring. Winner could get all the loser's assets and income, and of course dental coverage. Might be embarrassing for California's governor to face such a challange.

Posted by: Mac at July 2, 2009 03:12 AM

Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.

Posted by: KingofthePaupers at July 4, 2009 04:09 AM

Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.

Posted by: KingofthePaupers at July 4, 2009 04:11 AM

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