“The economy of California is a dominant force in the economy of the United States, with California paying more to the federal system than it receives in direct monetary benefits.”
It’s official, we are in the well! If you think this will just affect California, think again. The state’s economic engine is too big; it ranks 10th in the world economy. I guess the state will need to keep what’s left of that money to pay unemployment to all those folks they just laid off. Get rid of Proposition 13 now!
Capitol and California
Construction projects halted
By Bee Capitol Bureau
Published: Wednesday, Dec. 17, 2008
The state’s Pooled Money Investment Board voted unanimously this morning to cut off billions in funds for state highway, school and other infrastructure projects.
State Treasurer Bill Lockyer said the action was necessary to preserve cash as the state General Fund heads toward insolvency.
Lawmakers have been unable to agree on a plan to close a $40 billion budget deficit between now and June 30, 2010. Without action that cuts expenses or raises revenue, the state could run out of cash as early as February.
The cutoff will stop some projects already underway and delay the start of others, costing thousands of private sector jobs.
See a list of the projects here.
Paddling around in the shaft isn’t going to get us out. We need a rope now! Otherwise, can the vultures be far behind? Even if lawmakers come up with a plan, these jobs are mostly gone, since any plan would not immediately resolve the deficit. That means each one of these projects will be reevaluated, discarded, shoved down the road, etc.
I Own My Vote, PUMA, The Denver Group, The New Agenda
Grab and Keel 
You might want to explain to people about Prop 13. I called it “the how to destroy an economy law.”
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Good point Patrick. I forget people just don’t know. I have linked the Wiki definition to Prop 13 above.
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If we suspend ALL interest payments and just work with cash from those who are working, the economy won’t keep tumbling out of control.
The higher ups KNOW THIS, but won’t bring this solution out into the open.
http://www.DailyPUMA.com
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[…] the recent State announcement of cessation of public works projects, one caveat to the later commencement of these projects was […]
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