◼ California’s Assorted Rocks and Hard Places - Victor Davis Hanson
News came out on Thursday that the California budget deficit is actually closer to $25 billion, twice what we are told. This follows from last year’s $42 billion shortfall, which was closed by all sorts of one-time tax increases and gimmicks. Here is our general dilemma in a nutshell.
◼ Calif borrows $40M a day to pay unemployment - sfgate.com
With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.
The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.
◼ California's unemployment fund has deficit of $10.3 billion - mcclatchydc.com
◼ What does the market know about California's finances that the rest of us don't? - Doug Ross at The Journal
◼ Troubled California begins $14bn bond sale - Financial Times
LOCALLY:
◼ 'A horrible, horrible mess': State budget back in the red, lawmakers called to special session - Times-Standard
"It doesn't really make sense for a lame duck governor to be doing this,” said Noreen Evans, who next month will take the 2nd District State Senate seat currently held by Patricia Wiggins."... Evans said it might be time to hand off some state services to the county and city levels, where voters have been more open to passing tax increases.
North Coast Assemblyman Wesley Chesbro, D-Arcata, is on vacation and was not immediately available for comment Friday, according to his spokesman.
