California is Morally Bankrupt, Soon Financially Bankrupt By Chris Knight
Here is some good news, because in the end, all of this pc woke madness needs to be funded, and if the funds are cut, it all collapses. Bring it on!
“The State of California is now less than 90 days away from a financial collapse that can only be averted by acquiring new sources of loans or dramatically slashing government-funded services in health care, pensions, welfare and education. The cracks of financial insolvency are starting to show, and Newsom has no plan that doesn’t lead California into anarchy and destitution. In a desperate effort to delay the financial collapse, Newsom has ordered the state’s EDD to delay unemployment checks for as many months as it takes to preserve the state’s rapidly-dwindling funds. The Mercury News reports that nearly 2 million Californians have yet to receive unemployment checks covering the first three months of the coronavirus lockdowns, which began in mid-March:
The brutal backlog is further evidence of the troubles plaguing the embattled state Employment Development Department, prompting the newly jobless to complain of an overwhelmed phone system and antiquated technology. The first-time claims have gone unfilled even as Gov. Gavin Newsom has promised reforms and increased staffing for the EDD. “I have done just about everything I know how to do as a public official to make things work, but my colleagues, my staff, my constituents and I are at our wits’ end,” Assemblymember David Chiu, D-San Francisco, said in a tweet. California’s state budget is around $208 billion for 2019 – 2020. About $80 billion is spent on radical left-wing indoctrination centers known as “public schools” (although not all of this is state-level spending, some of it is local). Over $100 billion in revenues are generated by the California state income tax. Another $27 billion comes from sales taxes, and $13 billion comes from corporate taxes. California’s general fund took in $143.8 billion last year and spent $147.8 billion in 2019 – 2020, showing that the state had been eating into its safety net of funds even before the coronavirus hit. In all, the state had about $19 – $21 billion in reserves before the coronavirus hit.
Now, thanks to Gov. Newsom’s coronavirus lockdowns, California’s revenue sources are getting hammered:
• Lower property taxes at the local level due to businesses and retailers going bankrupt.
• Reduced state income taxes due to fewer people working.
• Lower sales taxes due to reduced consumer sales.
• Lower corporate income taxes due to corporations losing revenues.
• Severe losses in energy-related revenues (taxes) due to the collapse in energy markets.
In addition, the vastly increased payments the state is making for unemployment benefits and other programs is adding to California’s financial woes. It’s all summed up by this CNBC headline from May 7th, 2020: “California faces a staggering $54 billion budget deficit due to economic devastation from coronavirus.”
As the story reports:
California will have a budget shortfall of $54.3 billion because of the economic devastation wrought by the coronavirus, Gov. Gavin Newsom’s administration announced Thursday, a stunning reversal for a state that had a $21 billion surplus a year ago. The Newsom administration estimates state general fund revenues will decline by $41.2 billion compared to the $222.2 billion spending proposal Newsom revealed in January. Plus, California must pay for an extra $7.1 billion for increased enrolment in some social safety net programs, including Medicaid, the joint state and federal health insurance program for the poor and disabled. Another $6 billion in anticipated emergency spending on the coronavirus for things like protective gear, hotel rooms for the homeless and cash payments for low-income adults living in the country illegally pushes the projected deficit past $50 billion. Meanwhile, lawmakers are already being asked to bail out the state’s essential industries. California hospitals say they have lost up to $14 billion by postponing elective surgeries and other procedures to make room for an anticipated surge of coronavirus cases that never happened. On Monday, the California Hospital Association asked lawmakers for more than $1 billion in aid. In other words, California is broke. The state blew through its “rainy day fund” in just a few weeks of the coronavirus lockdowns, and now California is reeling from the financial costs associated with the coronavirus lockdowns that Gov. Newsom seems determined to continue indefinitely. In other words, the Governor of California won’t let California get back to work, which means the $54 billion in losses is just the beginning of the financial carnage yet to come.
By the time 2020 is over, it’s no exaggeration to say that California may be $100 billion in the hole due to coronavirus lockdowns and bailout costs. On top of that, with the news now reporting that upwards of 28 million Americans may be homeless over the next few months because they can no longer make mortgage or rent payments, California is about to experience a homelessness problem that has never been witnessed before in the history of the nation. Imagine millions of new homeless flooding the streets of San Francisco, Los Angeles and San Diego, adding to the homelessness problems that already exist in those cities. It’s becoming abundantly obvious that the only way California can remain economically viable is to start raising taxes on its productive citizens, more of whom are fleeing the state due to insane left-wing policies, outrageous authoritarian regulations and punitive taxes on those who produce. As Newsom hikes state income taxes, fees and sales taxes, those who earn money (rather than collecting free money) will increasingly leave the state, leaving behind the non-producers who never contribute any funds to state revenues. The vicious cycle repeats year after year, until California is reduced to a collection of crime-ridden tent cities inhabited by obedient left-wing homeless people whose only role in society is to fill out multiple mail-in ballots and keep the corrupt Democrats in power. Fiscal sanity is ancient history in California, and the criminality and corruption of [the] … power brokers throughout the state is so outrageous that there’s hardly a California senator, mayor or governor who doesn’t belong in prison, charged with treason.”
The only answer here, and this will become common in the hard times ahead, is for decent people to abandon California, and similar cesspools, and head elsewhere. It is much like the story of Lot and his wife, the wife who looked back at Sodom and was turned into a pillar of salt. Jesus refers to this in Luke 17:32, as a lesson for the disciples not to falter in the tough times ahead. And, tough it will be.