09.04.2012
Los Angeles Mayor to Speak at DNC, but Likely Not About California’s Economy
original article written by Net Advisor™
Part I.
Charlotte, North Carolina. Los Angeles Mayor Antonio Villaraigosa is leading the Obama 2012 Campaign as Chairman of the Democratic National Convention (DNC).
The Los Angeles mayor is not likely to discuss that his city’s unemployment rate is higher than the national average at 10.9% according to the U.S. Bureau of Labor Statistics (PDF, page 7, highlight added).
Antonio Villaraigosa is also not likely to discuss the massive deficits that have been racked up under the democratic leadership or that the city of Los Angeles is technically insolvent. Over the last few years, the City of Los Angeles reduced its workforce by 4,900 positions and still faces a $222 Million budget shortfall (deficit).
Currently Los Angeles city employees may receive up to 100% of their annual salaries at retirement (until they die), plus cost-of-living adjustments (COLAs). Villaraigosa is considering a proposal for new hires to receive 75% of their highest salary per year at retirement (Source: SCPR.org). Sure can’t get that deal in the private sector. Did we tell you government was involved. Those who have a job in L.A. are giving up their income for those who are employed by the government and retired, or who will retire someday. The only problem is the city doesn’t even have the money to pay out the pension liability.
According to the Los Angeles Times, Budget Chief Administrative Officer Miguel Santana warned of L.A. going bankrupt if the city does not raise taxes and implement more layoffs.
“…if Stanford University’s estimates are correct, Los Angeles is facing roughly $27 billion in unfunded pension liabilities.”
— Source: Cal Watchdog.com, 04-30-2012
The L.A. mayor is not likely to discuss the city’s proposed job losses either.
“Los Angeles Mayor Antonio Villaraigosa proposed the elimination of 669 city jobs, 230 through layoffs, during a news conference this afternoon as he presented his final annual city budget for 2012-2013.”
— Source: Southern California Public Radio, 04-20-2012
Something else you won’t hear at the DNC, is that Los Angeles Mayor Villaraigosa has a history of controversy from associations to radical groups in college, to a major ethics scandal just last year (please see our 2011 Report).
Part II.
What is Happening in the State of California Under Jerry Brown (D) and Democratic Dominated State Legislature’s Leadership?
Sacramento, California. California has the third highest unemployment rate in the nation at 10.7% (Source: U.S. Bureau of Labor Statistics (PDF, page 2, highlight added). Just this past May, the state lost another 4,200 jobs (Source: Los Angeles Times, 05-18-2012).
The state governor or whomever is in charge of the state’s finances, apparently miscalculated the state’s deficit by $6.8 Billion or about 74%. [MATH based on the below data: $16 Billion (May 2012 deficit) minus $9.2 Billion (Jan 2012 deficit) = $6.8 Billion deficit miscalculation. Then, $6.8 Billion divided by the original deficit $9.2 Billion = 73.91% or rounded to nearest whole number = 74% increase in the deficit calculation in just 5 months.]
California Deficit Jan 2012 = $9.2 Billion
California Deficit May 2012 = $16 Billion“California’s projected budget deficit has ballooned to $16 billion, much larger than the $9.2 billion estimated in January, Gov. Jerry Brown said, and he warned of more painful spending cuts.”
— Source: Los Angeles Times, 05-13-2012
The Democratic Solution to Government’s Excess Spending? More Taxes.
Gov. Jerry Brown (D-CA) makes some budget cuts, but this assumes California voters will approve to tax themselves higher this November 2012:
Governor threatens its citizens if you don’t pass tax hikes we are going to cut education.
“The budget closes the state’s $15.7-billion deficit with cuts in social services and depends on voters approving more than $8 billion in temporary tax hikes at the ballot box in November. Without a higher sales tax and increased levies on the wealthy, the governor says, the state will cut billions from public schools.”
— Source: Los Angeles Times, 06-28-2012
Just a note that the key phrase they use in government is “temporary” (taxes). Note that there is nothing that prevents government to cut their deficit once the “temporary” taxes are over. So government will just seek more “temporary” taxes. Get the idea? It does not end, yet the majority of voters in this nutty state keeps electing people who are bankrupting their community and state.
Mass Prisoner Release Helps State Budget?
The state got “help” from the Supreme Court in 2009. The Golden State was ordered to reduce (release) 37,000 to 46,000 criminals. Why? We’ll there is just too many people in jail and damn if a prisoner has to wait to see a doctor, or share a toilet. They have much better things to do right?
So the release of these prisoners may help the state budget, because the state won’t have to pay the cost to house them. But what if they are repeat offenders and commit more crimes against people or property? What does that cost?
Democrat Solution: Just Tax Them?
It seems that the Los Angeles Mayor and the State’s Governor both have the same problems. Government spending is out of control, running unsustainable deficits, and the net solution is to make minor spending cuts, but never get spending under control.
The real goal is to increase taxes so government can keep spending. Raising taxes is not too popular. So the left ran government threatens to cut education spending. Other government threats in the past have been to cut police and fire fighters as if government will just eliminate police and fire fighters.
So if government doesn’t get its way, it threatens its citizens into compliance. Obviously this is working well.
Read how NetAdvisor™ balanced California’s state budget AND created $1.336 Billion surplus, all with NO personal tax increase, NO corporate income tax increase, NO sales tax increase, and NO DMV License fee tax increase. Read it Here – 27 pages with graphs and other things to look at!)
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