Schwarzenegger Seeks $6 Billion Loan, Orders Cuts

[TwixVoy]

Source: Bloomberg

May 14 (Bloomberg) -- California Governor Arnold Schwarzenegger proposed the state seek a $6 billion loan from Wall Street and called for deep cuts in education and welfare programs to help erase a resurgent $15 billion deficit.

Schwarzenegger, a 61-year-old Republican, said the state should sell $6 billion of revenue anticipation warrants, a type of cash-flow loan that can be repaid over two years. More borrowing likely will be needed as the fiscal year progresses, he said. He also proposed cutting $6 billion in spending, mostly from schools and colleges. The proposals are part of his annual May revision to the state’s budget plan.

The worsening economy is forcing Schwarzenegger to open a new fight over the budget just three months after he slashed spending and raised taxes by $12 billion in a failed bid to erase what was then a record shortfall. Schwarzenegger said there’s no will in the Legislature for another battle over tax increases, forcing him to find other fixes.

“Sacramento is not Washington, we cannot print our own money,” Schwarzenegger said today. “To look for new revenues is out of the question.”

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=an_EHvPk84sY&refer=home

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Notice how CA is going for a $6 billion loan from WALL STREET?

So not only are individuals, businesses, and the federal government broke and indebted because of Wall Street now it will be the separate states themselves....

[DemReadingDU]

1. I thought the TARP was for banks only

Why can't Calif borrow from the federal government? Several states have been borrowing from the fed gov to pay unemployment.

[hay rick]

4. Unemployment is a joint federal/state program.

Feds have been funding extended benefits and making loans to states when necessary to fund benefits for years- as mandated by FUTA (Federal Unemployment Tax Act).

[hay rick]

2. Hello counter-stimulus.

Most state budgets are in a similar fix. An austerity budget is passed and within months, dramatic revenue shortfalls blow it out of the water. The revenue anticipation warrants are a desperate attempt to kick the can down the road just a little bit.

Ugly meet uglier.

[pinniped]

3. This asshole threatened to unleash upwards of 19,000 prisoners....

upon us if we disobey his edict and vote against his crap.

This is like the assholes that said vote for us or there could be another attack.

I do give him credit for knowing where all this magic bailout money is coming from.


“Sacramento is not Washington, we cannot print our own money,” Schwarzenegger said today. “To look for new revenues is out of the question.”

[downindixie]

5. Doesn't Calif have it's own

welfare system?

[Frank Booth]

6. Great. More screwing the poor and middle class.

Just what this state needs.

If Schwarzenegger really wants to solve this problem, he needs to try to get flippin' Prop 13 overturned.

[democracy1st]

7. what a sorry governor get lost Arnold,go back to making movies!