Wednesday, November 10, 2010
California's unemployment fund has deficit of $10.3 billion
California is on the verge of bankruptcy. The recession, unions, and the state legislature's decision years ago to raise pension benefits have contribute to the crisis.
Governor-elect Jerry Brown has promised not to raise taxes without voter approval, but many are anticipating that he will renege on his promise. The California people will be reminded again why he was a former governor years ago.
California has borrowed about $8.5 billion from the federal government (our money) to keep benefits flowing. It is expected that California will be mandated to start paying the interest on the loan. The U.S. government is scheduled to bill the state $362 million in interest starting next year.
It is likely Jerry Brown will probably raise unemployment taxes on employers as well as reduce benefits. Since raising the tax would require a two-thirds vote in both houses of the Legislature, Sacramento has no other option, but to pass the measure. With 2012 around the corner, it's going to be another bad year for Democrats.
Either way, California voters put Liberals in Sacramento. The consequence of their stupidity will soon be revealed.
Read Story: California's unemployment fund has deficit of $10.3 billion