Governor Arnold tried to do the right thing. He thought that if he just furloughed enough people for a few days a month…everyone could keep their jobs and continue to support their families….even if they worked for the State of California. But, Judges, Unions and greedy self serving types believed that to kill the Golden Goose was probably the better way to feed their families.
So, as the Budget Crisis hits “Maximum Overload”….the next logical step is to simply “fire everyone”. When you can’t pay your bills, can’t borrow money from your family or any bank on the planet……when your work has been determined to be “unsustainable”……well….in the words of Donald Trump: “You’re Fired!”
In the State of California, Foreclosures have become an endemic part of the the society. Residential and Commercial Real Estate is being presently propped up by not using “Mark to Market” grading systems. Banks, are keeping these rotten, toxic assets on their books under 2005 Real Estate Values. They may be empty, they may be disintegrating in front of their very eyes, they may be borrowing the cash from the Federal Government just to pay the taxes…….but this charade goes on.
Certain banks have determined that they need to use the Guiliani “Fix the broken window scenario” in order to maintain any temporal value and to possibly make those properties attractive enough ….that someone might actually want to inhabit and buy them. The problems come, when shortly after the repairs are made on these properties…..the new washer and dryer get stolen, even the new flooring….can be found missing. The right way to sell these properties of course….is to include the general repair in the purchase price….so that right after the repairs are made…..the new owners will be moving in and not letting that property remain empty and simply go fowl, before they are inhabited.
More importantly, banks need to take a district or regional approach to making these repairs. Whether it is a single street, four square blocks, or the complete north, south, east or west side of a community. Fixing one house and leaving the others in disrepair is not going to solve the problem. All we have to do is look at Detroit, Lansing and other cities in Michigan to see the effects of not taking a semi-regional approach to housing and commerical building repairs. So, where are those Redevelopment dollars going again?
Governor Arnold can not be blamed this time for a lack of planning or being able to find solutions to the State’s problems. He tried to make the system work for most of the State’s workers – by using a share the pain scenario with a temporary furlough system. Just as was the case when he supported the four big initatives that would have brought the profligate spending under control….he was roundly defeated by the same greedy, self serving….””I’ve got mine….and you aren’t taking anything from me!” State Employee mindset! It wasn’t Arnold that said: “Let them eat cake!”
Well, perhaps the time has come to simply shut down our State Goverment completely! Perhaps, reducing the the size of Government has finally taken its natural progression. Perhaps, Government is simply “Unsustainable”! Perhaps, if we just pay for the CHP and State Marshall’s Office….that will be enough. Oh, and the Franchise Tax Board of course. There does need to be some place for the citizens to send money. Perhaps, California will become much like Italy with a hundred City States! Each taxing, each providing a variety of duplicated efforts, each raping and pilaging every person that has two cents in their pockets. Hey, how about paying for your Driver’s License and auto tages at your local City Hall? Who needs the State of California anyway?
Where does the Federal Government send all its bail-out cash? Every city and town in California just sends in a postcard to Washington, D.C. “Dear President Obama, send cash!” Need we say, the time has come to fire every State Legislator and make them stand in line…..for Unemployment Insurance. Oops, that office is also closed. “So sorry people!” If you want to serve as an unpaid Legislator..you will have to pay the entire cost of the election you run in.
Layoffs are inevitable. It is important to note, however, that, in the years 1997-2008, the state hired an average of 48 workers per day. Surely, some of these can go.
Regarding foreclosures, the right way to sell the properties is simply to sell them as-is. There is a surplus of investors willing to purchase, repair, rnovate, and resell these properties. Why the resort to government planning? Let the market work.
It is time to reform state government by passing:
* PAYCHECK PROTECTION – pass the Citizen Power Initiative to curb the corrupt and overpowerful public employee unions
* PENSION REFORM – abolish state worker pensions (replace “defined benefit” plans with “defined contribution” plans)
* BALLOT BOX BUDGETING REFORM – sunset existing ballot box priorities, require 2/3 majority to pass ballot box budgeting, limit priorities to 3 years
* TERM LIMITS REFORM – abolish term limits because they serve no purpose other than to (a) empower the “shadow government” of political lobbyists and consultants, and (b) create a surplus of political hacks
And we may need to consider a court-supervised DEBT REORGANIZATION (like “bankruptcy”).
I’m not so sure about that term-limit abolition plank. I’ve always thought 6 years was too short for the Assy, and eight for the Senate, ditto. But really, the idea of Legislators for Life isn’t very appealing to me. Maybe an extention of the term limit? The Sacramento culture will suck in everybody sooner than later anyway.
One change I’d like to see (albeit mostly a symbolic one) is the elimantion of all the footling State commssions that pay a hell of lot to their “members” and that are used by the Governor to reward termed-out toadies in the Legislature and ex-staffers.
Need we remind you gentlemen that the banks are not lending to buyers? They aren’t even lending to Developers. They are lending to few Repair Developers that have an impeccable record of making millions on Custom Spec Homes.
2ndly, the only way you are going to get Pension Reform is by downgrading the current system for the NEW EMPLOYEES that are coming into the system. The uproad caused by trying to redact current pension agreements…seems a hopeless endeavor as long as State Legislators continue to take Cost of Living increases and raises while the rest of the population and the seniors ….starve!
The feds (including HUD) are underwriting loans are lending to homebuyers. And there are plenty of investors willing to pay cash to take homes off of bank’s hands (including myself).
Regarding pensions, your point is taken subject to the need for DEBT REORGANIZATION/RESTRUCTURING. As I discussed in earlier post, it is time for California to consider a bankruptcy-like debt restructuring procedure whereby it can deal with its pension and collective bargaining issues. See here,
http://orangejuiceblog.com/2009/12/californias-nuclear-option-2/
Regarding term limits, we have to ask ourselves what we hoped they’d achieve and examine what they’ve achieved.
I’m not sure what benefit we hoped for. I can’t think of any benefits (other than satisfaction of some emotional need).
As for the costs, I think the critics are right that they have transferred power to a shadowy, unelected group of professional political operators who act behind the scenes – not good in a democracy. And worse, we are stuck with an endless supply of political hacks cycling through all levels of state and local government – each looking for their next paying gig (in the public sector). That’s not good either.
I mean, really, was L.A. made better off when Villaraigosa got termed-out and they elected the dimwit mayor of L.A.? I don’t think so. And then, along came Fabian Nunez, then Bass, now Perez. These are the turds rising to the top of the political toilet bowl. Ya basta!
Rogue, you are right, but I remain troubled by the fact that the dear public are the ones electing the Villaraigosas of the world to alternative offices. I am having diffculty reconciling the mess that exists with the public’s antipathy to keep electing the same folks in a musical chairs game. I keep getting back to the point where it looks like the public gets what it votes for —— and I don’t like that outcome either.
Poster 6 hits it right on.
WHO ELECTS THESE GUYS?
I am preety certain a good chunk of the folks who pushed Davis out and Schwartznegger in are the ones bitching right now. Two loudmouth radio performers come to mind (and they are still rooking the people, only now they’ve teamed with OC’s own scam artist).
I don’t get to vote for Mayor of LA so, I can’t legitimately speak to that, but I did get to vote against Hackerman. What nobody relized before was that we had built in term limits, they were called elections.
So now we have a shadow government of aides and staffers who wait at joints like Hamburger Marys and TAPA’s on K+J street waiting for the offers to roll in. Just spend three or four nights in the capitol and evesdrop, ask questions and you’ll imediately change your kids major to political Science or public administration.
Closed Corporation comes to mind. Unless you are family…it is doubtful that you are going to get elected. Oh, anyone can run…..but that man of the people stuff went out with Mr. Smith Goes to Washington.
Our friend in Texas is convinced that without photos of those elected engaged in illicit acts with small children…they are not going to get elected over once. Cynical? Well, let’s get back to the discussion about banks really wanting to sell their inflated priced property for true market value…..Sure, they will sell anything for the 2005 pricing…not the 2009. Rogue…are you saying anyone can get cash to pay fair market for houses in Santa Ana right now? How about Villa Park? How about Fountain Valley? How about Midway City? Should we go on?