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The Most Shameful Fraud in Sacramento We've Seen Yet!

Stealing scholarship money for the kids of 9-11 victims is unforgivable

If any of you plan to vote in favor of Governor Jerry Brown’s tax increase proposition in November after learning about what is reported below, you seriously need to have your intelligence questioned.  The ever-decreasing lack of morals and integrity displayed by our elected leaders in Sacramento has never been made more evident than in the recent report of the intentional absconding of funds meant for scholarships for the children of California’s 9-11 victims. 

Following the September 11th attacks, California’s lawmakers directed the Department of Motor Vehicles to create and sell a commemorative “We Will Never Forget” license plate.  The proceeds were to be spent on anti-terrorism programs and most importantly, college scholarships for children of California residents who perished in the terrorist attacks.  Since the launch of the “California Memorial Scholarship Fund” campaign in 2002, more than $15 million has been raised.  Take a guess on how much of the money has been disbursed for the kids’ scholarships?

$20,000    No, I did not omit any zeroes!

Why, you ask?  Where is the balance of the money? How can this happen?

Well, for starters, both former Governor Arnold Schwarzenegger and current Governor Jerry Brown “borrowed” a total of $3 million and used the proceeds as filler in the never-ending state budget deficit.  That’s right; “borrowed.”  The “loan” has yet to be re-paid; nor should we expect it to be.  Millions of dollars more have been spent on state programs that have little or no direct link to anti-terrorism measures, including livestock diseases and workplace safety.

I suppose that was money well-spent to ensure we don’t have any mentally-deranged, explosive-laden cows flying into the capitol in Sacramento.  We can sleep better, now.

And you’re going to trust these fraud artists masquerading as Governor, Senators, and Assembly representatives with MORE of your tax money?

If you are, I'd be happy to refer you to a licensed psychologist.  Paging Dr. Strangelove...........

For additional details on this story, go to:

 http://www.sacbee.com/2012/06/21/4579725/families-say-they-werent-told.html

Ross Salinger June 23, 2012 at 01:20 pm
Sounds like a poorly administered program. What this has to do with raising taxes is beyond me. We have a permanent long term structural deficit. This has come about for four reasons. First, we rely too much on income taxes which are volatile in nature. Second, we have too many restrictions on how tax dollars are allowed to be spent yet make specific expenditures mandatory. (This is also seen in this very program.) Third, we have passed many referendums over the years which make further similar restrictions and often contradict themselves. Finally, we have the silly super majority rules which encourage the worst sort of partisan politics to be the rule. If we don't change these things, we actually encourage programs like to this to be poorly run - we've reduced our lawmakers to be either creative or scam artists just to get the money we need to run the state. The state is in trouble and you can't shrink it anymore. Taxes have to go up and there are not many ways you can raise them beyond the income tax and the sales tax thanks to the subsidies we've chosen to give to homeowners and the restrictions we've passed on spending.
Donald Sonck June 23, 2012 at 03:39 pm
Ross, points well-taken, but when does the taxing end? You've stated accurately that there is an overall structure problem with the budget, which for a couple of decades now, our legislators refuse to address/correct. They and their public employee minions and other special interst groups prefer the status quo, meanwhile driving more businessess from the state every year, and in turn, reducing the tax base. You trust these clowns with another tax increase? Brown wants to spend an initial $9 billion and more on a"high speed" train in the freaking Central Valley of all places that that voters approved which now cannot even meet the very provisions of the proposition that was approved! All while attemtping to fill a $16 billion dollar budget deficit! California already ranks in the Top 5 nationally in the highest income, sales, and gas taxes in the country. And state Democrats want more! No way!
Donald Sonck June 23, 2012 at 03:47 pm
By the way, there is no more "super majority" for passing a budget anymore. Voters approved a simple majority rule by approving Proposition 25 in 2010. In return, legislators were supposed to have their pay taken away for each day beyond the June 15th deadline to pass a budget. Controller John Chiang attempted to invoke the rule and fine law-makers last year, only to have a judge declare that he had no such authority to do so. That key piece of the Proposition is now unenforceable. Check out the link below. Nice, huh? http://ballotpedia.org/wiki/index.php/California_Proposition_25,_Majority_Vote_for_Legislature_to_Pass_the_Budget_(2010)
Ross Salinger June 23, 2012 at 05:30 pm
Well, I'm glad that the super majority was lifted, I guess I forgot about that one, that still doesn't do much for the budget gap. If you don't agree that a tax increase is necessary, just tell me where you would get the $15 billion dollars or so in some other manner? Let's just try to find 10 billion by extending your argument that there is much dumbness and waste - say 5 billion of so - in the state. I have tried this exercise before and I can't work out how to do it. Can you?
Donald Sonck June 25, 2012 at 12:23 am
It's an easy exercise if Brown and his party cronies had any sense of patriotism, which they don't, of course. By the way, did you know Brown's proposed budget is 7% HIGHER than last year's spend? For starters, go to every public employee union contract and give the business agents an ultimatum: take an across the board 10% pay and benefit cut or face immediate lay-offs of 10% or more in your work force. That's what Chris Christie successfully did in New Jersey! The budget call for $92B in spending; there's minimum $8B in savings right there. Overturn AB 32, the ridiculous "global warming" bill that Brown is convinced is going to generate $1B in carbon reduction credits, when it fact the bill will drive more than that amount of money away in businesses leaving the state. Cancel the stupid "bullet train" and save the debt the state will have to pay on the initial $9B in bonds. Make E-Verify a mandatory employment practice throughout the state, including all levels of government, and watch the number of illegal aliens lose their jobs and Californians instead get them. This in turn would also reduce the number of enrollees on MediCal (Medicaid), and CalFresh (food stamps) which consumes 28% of the state budget. And did you know the state has $45 billion in unfunded pension obligations and another $59 billion in unfunded retiree healthcare obligations? It's only a matter of time before California goes insolvent; there is not a white knight on our horizon.
Ross Salinger June 25, 2012 at 12:58 am
1. The budget is higher because entitlement costs are increasing not because Brown is deliberately trying to raise it. By the way the real problem with this budget is that it assumes a ten percent increase in income tax which you have to understand is absurd on its face.
2. Your math about the 10 percent pay cut shows a complete lack of understanding about the budget numbers. You can probably get maybe 2 billion that way. It's not an approach which would stand up in court - contract law anyone - and so it's cannot be a part of balancing the 2012 budget even it it was doable. 3. Cancelling the bullet train will save nowhere near a billion dollars in interest. At most you're talking a couple of hundred million. Good idea though. 4.I agree completely about E-Verify but it won't save much money because these are low wage jobs that pay little or no state income tax. Again, small savings and a good idea. 5. The pension obligation problem means that the gap is even bigger - do you understand that? Where's that money coming from if taxes aren't raised. The only way to balance the budget is to raise taxes. Otherwise you are correct, the state must eventually go bankrupt. Let's just pay a bit more and avoid that disaster. Do you really advocate California being the Greece of the USA? So, you've made a good start now find another ten billion in cuts because everything you've written is small change or impossible to implement this year.
Donald Sonck June 25, 2012 at 01:39 am
Ross, I know the budget numbers. Two billions is WAY low. Like most businesses, and the state govenrment is a business, albeit and un-regulated one, by far the largest expenditures are labor and benefits; look at it yourself. Yes, there's risk in the unions suing and going to court, but when each CBA expires, make the aforementioned demands. If the workers reject the demand, then let them strike! Better yet, ban the ability for state workers to organize. Scott Walker got it done in Wisconsin and beat a recall to boot! It can be done, but not here in our life-time. You can't keep taking money from the decreasing number of tax-PAYERS and expect the practice to be sustainable enough every year to balance an ever-growing majority of tax-TAKERS. "Pay a bit more?" Define "a bit", please. I say "no!" And yes, I'd rather see the state go the way of Greece and allow the courts to reform and run the it. How can it be any worse than the way it's "governed" now? That's where we are heading. Brown's and Munger's tax proposals are DOA in November. The only other way to increase taxes is a 2/3 majority vote in the Assembly and Senate, and Democrats don't have that big of a majority now.
Ross Salinger June 25, 2012 at 11:50 am
1. Donald, there is not, in the state budget, 60 billion in union wages, it's certainly less than 50. So, your ten percent idea, regardless of it's merits is going to fix maybe 50 percent of the gap. Further your idea won't affect the deficit in 2012 as the CBA's don't all come due in 2012 or 2013.
2. You like the idea of going bankrupt as Greece did. Guess what happens then. Well, in Greece they have raised taxes, just what you think needs to be avoided, and had a deep recession. Same thing happened in NYC in the 70's when it went bankrupt. The courts may reform what they can but such reform will only result, as it always does, in a deep recession and increased taxes to balance the shrinking budget. 3. We agree completely on a number of things, particularly getting the lunatic spending items out of the budget - train to nowhere, over the top environmental laws, too much small business regulation, eliminating guaranteed payout government pensions, etc. We disagree about how to fix these things and about the fact that proposition restrictions are the real culprit here starting with propositions 13, 98 and whatever that "alternative" fuels one was. We can live with higher taxes and can make reforms. We don't need to put California in receivership, cause a major recession and end up with higher taxes to boot which you continue to recommend. Sadly, I suspect you're right, people are not going to raise taxes because they don't understand the lessons of history.
Donald Sonck June 25, 2012 at 01:00 pm
All good points, Ross, but when it comes to the unions and making demands for pay/benefit concessions or lay-offs, regardless of the CBA expirations, Brown should be demanding that the contracts be re-negotiated now, or the workers face additional furlough days. Either way, their pay gets cut now. Not a complete fix this year, no, but it is some relief and sends a message that more concessions must be made...or else. If California declares BK, the courts have the right to re-open and even negate any and all CBA's they deem excessive. Choose your poison, AFSCME, SEIU, CTA, etc. As for receivership, what you fail to mention about Greece is the HUGE number of government worker lay-offs and pay/benefit concessions that were made by Athens in return for the IMF and Euro-Union bail-out. Italy, Spain, and Portugal face the same fate. Britain is being pro-active and cutting government jobs as well. Their decades-long articial business growth via public works programs is finally coming home to roost; not sustainable. Taxes as the main source of shoring up the deficit is not the solution. Again, there needs to be a complete re-structuring of the budget process and major concessions from organized labor. You and I should be in Sacramento, my friend! We'd get it done; there's room for compromise!
Ross Salinger June 25, 2012 at 02:28 pm
First, we agree about Brown needed to get concessions from the unions and we agree that this might result in a couple of billion dollars in reducing the budget deficit - guaranteed pension reform should be at the top of anyone's list.
Receivership, however, will however result in higher taxes, not just the repudiation of union contracts and pension obligations. This is what has happened in every case - higher taxes and fewer government jobs. In the case of California, unless there is comprehensive reform, receivership will result in a growing increasingly unfair tax burden because there are straitjacket laws and propositions which limit what any court can impose. A receiver can abrogate contracts but not laws. It's not just organized labor that needs to make concessions, rather the entire farce of trying to have a balanced budget but capping the most stable source of tax revenue - property taxes - is at the heart of the problem along with all the other propositions - train to nowhere, alternative fuel mandates, etc. I'm too old to run for office myself, but I'd love to see a blue ribbon committee provide an objective examination of California's budget - revenue and expense with the legislators bound to pass the recommended reforms regardless of what they turn out to be.
Donald Sonck June 25, 2012 at 03:26 pm
Ross..................Amen to all you stated! Not only are you, by your own admission, to old to run, but you're also too practical to be elected, like most of us who are even somewhat educated on common sense, non-politically charged finance!

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