MAY 26, 2009: Just Say No TO A Bailout for California
ByI was asked a popular question today from someone outside of California. “What’s your Governor going to do now that the voters didn’t pass all those props? I answered by explaining Governor Schwarzenegger’s proposed laundry list of budget cuts. You remember…cuts of thousands of state employee positions, cuts in billions of dollars to education spending, cuts to children’s healthcare, off loading criminal illegal aliens to the federal government, the taking of BILLIONS of dollars from local governments, the list goes on and on.
With an estimated $21.3 BILLION dollar budget shortfall, it’s going to take more than cursory cuts by a lame duck governor to get us out of out of our deficit hole. On our current course the state will be out of money in weeks, not months (if you read this blog you know that would actually be a good thing for California). The ink wasn’t even dry on the special election ballots before we heard how California is too big to fail. This is much of the same rhetoric we heard with AIG and the auto industry. Speculation on federal assistance for California is rampant. Secretary of the Treasury Timothy Geithner and the White House lacks the power to throw money our way but Congress can. The President, in an interview with C-SPAN last week, said “NO” when asked about a bailout for California. This doesn’t mean it’s a dead issue. The term “bailout” is vastly unpopular with the American people. To get around this, state officials are asking for “emergency federal loans” and “federal loan guarantees”. Whatever they call it, it’s a bailout.
The American taxpayer’s should not have to pay for the costly mistakes of our incompetent state government. The citizens of California do not deserve to be shackled with the inevitable strings that come attached with federal bailout money. Federal financial assistance is not a solution and it shouldn’t even be an option for Sacramento. It’s bad for America and it’s bad for California.









