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California Going Broke

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  • JAIL4Judges
    JAILers4Justice (J4J) ____________________________________________________________ Los Angeles, CA June 27, 2009 A
    Message 1 of 1 , Jun 27, 2009

      JAILers4Justice (J4J)
      Los Angeles, CA                                           June 27, 2009

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      California Going Broke


      I, Ron Branson, find myself greatly entertained by the below news published in today’s Sacramento Bee. Just the sheer count regarding the number of bureaucrats slopping at the pig’s trough is astounding. Whatever happened to the admonition of Thomas Jefferson, to wit, “The government that governs least governs best”?

      Our Founding Fathers did not envision such a behemoth monstrosity of the power which we now call “government” today. J.A.I.L. has constantly described this power not as “government,” but rather a “Power Foreign to our Constitution.” (See our formal heading above). This identity is dutifully described in our Declaration of Independence, “He has combined with others to subject us to a jurisdiction foreign to our Constitution, and unacknowledged by our laws, giving his assent to their acts of pretended legislation.” We have no “government” today, only pretended authority to which we bow allegiance, because it demands we do so.

      Now here is my comment on the below article. California is facing what they call, the issuing of IOUs to run the “governemnt” for this next month. Now what is so strange about that, you ask? Simple! IOUs are Bills of Credit, and our U.S. Constution, which is supposed to be the supreme law of this land, states very clearly in Art. I, Sec. 10, Clause 1, right along with the mandate that every state shall deal only in gold and silver coin, “No state shall … emit bills of credit.” Now unless I am suffering from dementia, the last time I heard, California proclaims itself as a state. Ah, yes! I hold in my very hands a copy of a book that proclaims itself to be a “Constitution of the State of California , 1879.”

      I don’t understand. If indeed the Constitution is the supreme law and the supreme law of the law of the land mandates that no state shall emit bills of credit, and California proclaims itself a state, how is it that “ California ” can emit bills of credit? The only sound explaination I make is that we have no government in existence today, and we have no State of California , only its pretended existence. But then, this rases the question, do we really have a govenor of California or even a president of the United States ?

      The last line of the fifth paragraph mentions a Department of Finance. One day when I was up in Sacramento , I decided to go to the Deparment of Finance and talk with the Director of the Department of Finance. I told him, “I know how the State of California can increase its revenue.” He was all ears, and listened to me intently. I started off using an illustration of apples and oranges. I asked him if I had an apple tree in my back yard, and my next door neighor had an orange tree, and we decided to mutually trade a bushel basket of my apples for a bushel basket of his oranges, has a taxable event transpired for both of us? He said, “Yes.”

      I then told him that the State of California was missing out on some very serious revenue. When a worker trades his labor to a corporation for a salary, he pays a tax on his labor. But on the other hand, the corporation which receives the labor in exchange, not only does not pay a tax on the value of the labor received, but in fact, takes it as a tax deduction. I asked him why California fails to tax the value of the labor received from the exchange, as this is a large amount of revenue to the State of California . His answer was, “We couldn’t do that!” I asked, “Why not, it’s a taxable event according to you.” He said, “The corporations would not allow us to get away with that!” So there we have it straight from the horse’s mouth. California is in  financial staights, yet they fail and refuse to tax an immense pool of billions of dollars in state revenue to balance the state’s budget. I don’t know about you, but I call this whole thing about financial shortfalls a joke when they purposely fall to tap one of their greatest sorces of revenue, the corporations, which are rich, powerful, and plentious here in California .

      - Ron Branson – National J.A.I.L. CIC


      Governor threatens third furlough day for state workers



      By Kevin Yamamura and Steve Wiegand

      Published: Saturday, Jun. 27, 2009


      Gov. Arnold Schwarzenegger plans to furlough state workers an additional day each month starting in July if lawmakers do not send him an immediate solution for the entire $24 billion budget deficit, he said Friday.

      Schwarzenegger's move would force at least 215,000 state workers to take three unpaid days of leave each month, the equivalent of a 14 percent pay cut in all. A third furlough day would strike another economic blow to the Sacramento region, where more than 80,000 area residents work for the state.

      The Republican governor framed the additional furlough day as an effort to preserve cash as the state faces the prospect of issuing IOUs starting Thursday to vendors and low-income disabled and elderly residents.

      "It's clear that if the Legislature does not send a full budget solution to my desk by June 30, California will face an extreme cash-flow problem that will threaten our ability to pay for vital services," Schwarzenegger said in a statement. "I cannot force the Legislature to act, so I must do what is in my power as governor to conserve cash so that the state can continue to operate."

      The state would save about $61 million in cash in July alone with an additional furlough day – and $184 million with all three days of unpaid leave, according to the Department of Finance.

      But Hallye Jordan, spokeswoman for Democratic state Controller John Chiang, said the cash shortage for July is currently pegged at $2.78 billion, and that the savings from one day's furlough would not provide enough savings to avoid having to issue IOUs in July.

      State employees would schedule the third furlough day, like the other two, on their own, said Schwarzenegger spokesman Aaron McLear.

      The Legislature and the state judiciary are exempt from the governor's furlough plan because they are separate branches of state government. An estimated 15,000 employees who work for constitutional officers, such as Chiang or Attorney General Jerry Brown, also have avoided furloughs because the question of whether Schwarzenegger can compel them to do so is tied up in court.

      In downtown Sacramento, state workers greeted news of a third potential furlough day with a mix of anger and resignation late Friday afternoon.

      Some said they'd have to scale back or cancel summer vacations and cut back on food, entertainment and just about all big expenditures that they make.

      Mark Robinson, a civil engineer at the state Department of Transportation, said the threat of a third furlough day was not unexpected but still hard to accept.

      "It will seriously hurt if it goes through," said Robinson, a Davis resident, interviewed at a downtown bus stop.

      "My wife's a teacher, and she was just notified that she's going to get a pay cut of about 5 percent. … I'm wondering if I will be able to feed my family on this sort of arrangement," added Robinson, the father of two middle schoolers.

      Schwarzenegger and Senate Republicans are in a standoff with the State Assembly and Senate Democrats over whether to approve $5 billion in solutions now that could delay the need for IOUs.

      Legislative Democrats and Assembly Republicans, perhaps recognizing that the two parties are unlikely to resolve their overall differences by Tuesday, approved the $5 billion package this week as a stopgap solution. But the Senate GOP blocked the plan, with backing from Schwarzenegger.

      The governor and Senate Republicans generally agree with the guts of the $5 billion proposal, but they say they oppose it because it is a piecemeal approach that further delays the overall budget solution.

      The governor demanded Friday that lawmakers bridge the entire $24 billion budget gap by Tuesday – the end of the fiscal year – in order to avoid IOUs and, now, a third furlough day.

      "It is irresponsible for the Legislature not to deal with the whole $24 billion," he said. " … The controller has made it very clear that we are running out of cash and therefore we cannot make any payments. This would be unfortunate. We should do everything we can to solve the budget. We have five days now."

      Jim Evans, a spokesman for Senate President Pro Tem Darrell Steinberg, criticized the furlough move.

      "While we all understand that everyone in government must sacrifice during this time, the governor's proposal is an unfair burden on those who contribute so much to the betterment of our state," Evans said.

      Yvonne Walker, president of Service Employees International Union 1000, which represents 95,000 state workers, said another furlough day added to the two state workers already face would equate to the loss of 36 days of pay in a year.

      "The governor needs to stop issuing threats and he needs to govern," Walker said. "Using his employees as pawns is not the way to go. There are other suggestions we have made where he can capture cash."

      Lawmakers moved no closer Friday to solving the state deficit and adjourned until Sunday. Schwarzenegger is scheduled to meet today with Democratic leaders.

      In the Assembly, Democratic leaders went through the motions of voting again on a bill containing $11.4 billion in spending cuts that had already been rejected Wednesday by Republicans who wanted deeper cuts. The bill was again shot down.

      The state Senate on Friday rejected a Democratic proposal to finance the California park system through a $15-per-vehicle registration fee, largely due to Republican opposition.

      The GOP senators also flexed their ability to block any bill requiring a two-thirds approval by rejecting measures that would have accelerated income tax collections and increased enforcement of other tax laws; and would have imposed a surcharge on property insurance policies to fund state emergency response programs.  


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      He has combined with others to subject us to a jurisdiction foreign to

      our constitution, and unacknowledged by our laws; giving his assent to

      their acts of pretended legislation.    - Declaration of Independence
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