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Why should the rest of the states be on the hook to continually bail out California that insists on providing more and more unfunded benefits that other states do not have?
What are you talking about? I never said they'd get a bailout. I just said they should be able to declare bankruptcy. That means that they are free of their existing obligations. The people that bought the bonds are screwed, just like the sotckholders are in a company that goes bankrupt. It is a risk one takes as an investor. The people expecting (or getting a check from the gov are sol as well. That's what you get for letting government promise you thing they can never afford to pay. All those people getting pensions like it is still the 19050's. Forget it. There is no way a non-government worker should have to pay high taxes so that a government worker can get benefits that no one else gets. I know a cop who retired from the force in Miami after 18 years and is making six figures from his pension. No wonder governments have to keep raising taxes. It is unsubstainable.
State legislators were faced with two "terrible choices," said Steve Brown, a spokesman for Illinois House Speaker Michael Madigan, a Democrat. They opted to raise taxes rather than cut spending. Also, as part of the package, lawmakers placed a 2% cap on spending growth and authorized $3.7 billion in borrowing to make a pension payment.
The spending plan for 2011-13 cuts ferry runs, closes two correctional facilities (McNeil Island Corrections Center and Maple Lane), eliminates the state's health insurance for the poor and stops food stamps for more than 14,000.
Gregoire said her task was made more difficult because 60 percent of the $32 billion, two-year state spending can't be cut, due to federal mandates or other rules. That meant that nearly $5 billion in cuts had to be found from about $14 billion in spending.
Well cool, amend the bankruptcy laws, scrap the 10th Amendment and place federal courts under the jurisdiction of the state, just for starters.
Of course a fascinating issue would ensue when I Federal judge questions a states financial ability to pay. You see unlike a normal applicant of a bankruptcy proceeding a state can dictate how much it receives in revenue arguing that the state just didn't want to impose higher taxes on its citizens hardly seems like a viable argument to escape paying for one's creditors.
Why should I pay for California's irresponsibility to meet its own financial obligations born out of fiscal drunken spending and golden pensions that could never possibly be met when they were negotiated with the unions.
California, and its residents, are responsible for their own fiscal matters. No one other than California voted to award these ridiculous financial obligations. They made the wine and now they have to drink it. If it has turned sour, it's not our problem but California's problem alone.
Don't come crying to me for my money to bail their sorry ass out.
What if they threaten to secede if they don't get a bailout? I could easily see the GOP and the tea party getting behind California secession, as that would mean that Obama couldn't be re-elected without the CA electoral votes and without those votes it would be extremely difficult for any Dem to be elected President again.
So far anyhow.....the Federal Government isn't about to go into bankruptcy, but certain States are. I presume THAT'S why he doesn't mention the Federal Government.
I imagine however that the way things are "progressing" with the progressives in power, we might have to cross that bridge when we come to it.
Ca & IL are perfect examples of two states that have been run by Progressive liberals for years and years. The results? Well we all see them, no more money to meet the irresponsible obligations they went over the edge with in their promises to society.
Take heed and warning because the fiscal condition of these two states are exactly what will likely happen to the Federal government if it continues down the path of Progressive fiscal irresponsibility. In fact, the Federal government is there right now as we will see when they raise the debt ceiling that almost all those fools in DC said they wouldn't do. Even PBO condemned it when he was in the Senate. Now he sings a different tune..Hypocrites, most of them....
Waiting to cross bridges when we come to them is exactly what put Ca & Il where they are today. There is no waiting. The time is now to cut spending and drastically reduce the size of the government Diplodicus.
Interesting he is willing to go after negotiated pensions of states, how about the pensions of US Congressmen.
"As a way to let state governments, and taxpayers, off the hook for paying the trillions in pension benefits they have promised to their workers, presidential hopeful and former House Speaker Newt Gingrich has proposed changing federal laws, so that states can go bankrupt. True, state pension plans"
Anybody know why we did those? We sure had the money for those big snafus. But anything that favors middle America? Heck no, we can't find the money for anything along those lines.
Interesting he is willing to go after negotiated pensions of states, how about the pensions of US Congressmen.
"As a way to let state governments, and taxpayers, off the hook for paying the trillions in pension benefits they have promised to their workers, presidential hopeful and former House Speaker Newt Gingrich has proposed changing federal laws, so that states can go bankrupt. True, state pension plans"
The states have simply spent too much money and made too many promises to union employees. If we are to redistribute the wealth as our president promised to do, then the extremely fat pensions should be a target as well as the rest of the tax burdened.
Well cool, amend the bankruptcy laws, scrap the 10th Amendment and place federal courts under the jurisdiction of the state, just for starters.
Of course a fascinating issue would ensue when I Federal judge questions a states financial ability to pay. You see unlike a normal applicant of a bankruptcy proceeding a state can dictate how much it receives in revenue arguing that the state just didn't want to impose higher taxes on its citizens hardly seems like a viable argument to escape paying for one's creditors.
Can't wait to see how this plays out.
They don't have to go to bankruptcy court. They simply have to raise their taxes and meet their obligations by cutting the size of their bloated government that placed them in this position in the first place. Let CA & Il be responsible for their own elected officals misue of the people's money. If that means rasining taxes and shrinking gov't, so be it. They made their own bed now it is time to lie in it.
What are you talking about? I never said they'd get a bailout. I just said they should be able to declare bankruptcy. That means that they are free of their existing obligations. The people that bought the bonds are screwed, just like the sotckholders are in a company that goes bankrupt. It is a risk one takes as an investor. The people expecting (or getting a check from the gov are sol as well. That's what you get for letting government promise you thing they can never afford to pay. All those people getting pensions like it is still the 19050's. Forget it. There is no way a non-government worker should have to pay high taxes so that a government worker can get benefits that no one else gets. I know a cop who retired from the force in Miami after 18 years and is making six figures from his pension. No wonder governments have to keep raising taxes. It is unsubstainable.
You took my post wrong. I am in AGREEMENT with you. They should go bankrupt INSTEAD of receiving a bailout from the Federal Govt that comes from taxes collected from other states.
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Gingrich: middle class h8r
