California’s budget impasse has forced them to issue IOUs. The $26.3 billion deficit had earlier compelled the governor to enact work furloughs in a desperate move to save cash.
photo by sterlingpr
Now Schwarzenegger is calling out Democrats and union interests who he says are being unfair to California taxpayers:
California’s Democratic-led Legislature is putting union interests over taxpayers’ well-being, Gov. Arnold Schwarzenegger said Thursday as the state prepared to issue IOUs for the first time in nearly 20 years.
The Republican governor said Democrats have resisted reforms he believes must be part of solving the state’s $26.3 billion shortfall.“It steps on the turf of the people they want to protect,” Schwarzenegger said during a press conference in Los Angeles. “At some point, it has to be Judgment Day. Who do we protect?”
The governor recently proposed changes to cut state employees’ pensions and adopt fraud-prevention measures for in-home caregivers. Democrats have criticized Schwarzenegger for including long-term policy changes as part of budget negotiations. [Mercury]
The legislature had already raised taxes in February, which proved ineffectual as personal income tax revenue plummeted by 34% soon after.
lowering senitors and other high ranking officials wages may help alittle. in california i bet if you with hold the senetors pay until they fix the buget or at least make a budget that sets california on the wright track for recovery they will stop sitting around and do something.
who runs this contry the tax payers or the unions. it sonds like the elected goverment officals may be lining there pockets with union money and ignoring the people that put them there.we need to reraise the car/truck registraion to where govenor grey davis had it arnold ment well when he lowered it but there are to many illegals driving in california and the state continues to pay welfare and unimployment to these peaple becouse the file fallse reports with fraudulent paperwork. there are to many poaple fileing false reports and not enogh gov. enployess to catch all of the false ones. this is one of the many resones our state in in the crisis that it is.