CNN

Taxes need to be increased to resolve the imbalance. Of course, the folks who use the most services (the indigent, the working poor, the disabled and Ill) should pay most of the taxed. After all, fair us fair. I agree with the earlier post that noted that prisoners should pay for their accomodation ( or perhaps their families-talk about effective peer pressure to reduce crime). Most importantly, this us not a Democrat or Republican issue, it is a Cslifornian issue.

Years of California's Senate and Assembly being controlled by Democrats, plus some Democrat governors before Arnold have led us to this point. The Governator is the only voice of reason in Sacramento when he says "Cut spending......no new taxes."

The Democrats in state government can't make it happen, even though California voters in the May special election voted 2 to 1 for no more taxes, no borrowing, and no raises for state senators and assembly members unless they balance the budget. People are fed up with being gouged for money.

As goes California, so goes the country?

Taxed
Enough
Already

Where is the Terminator when you need him!
Arnold is better on film than as Governor.

California's financial problems all stem from late 70's Prop 13, which limited property taxes to 1% of assessed value and couldn't go up by more than 1% a year. A huge windfall to big property owners (note to "Jon in CA" – they aren't liberals.) But this caused unavoidable shortfalls in local governments budgets, who were now unable to afford basic costs of police, fire, and public education. State ends up picking up part of the tab, which works when market is humming, but not now. Without the illegal workforce, California would have been in the tank long ago.

You could start by making some of the wealthy folks start to pay their fair share of the tax burden.

I guess this means anyone who owes taxes next April can send a IOU to the govt, right? Maybe pay a fine by IOU as well? Actually, I dont see the problem in California. Dont they love paying for all the illegals they have there? Sanctuary cites and all that crap! Every need an illegal has is paid for by the stupid people of California. So whats the problem Cal??? The people of Ca. wanted it this way, and now they've
got it!!! I guess its a good thing the Federal Govt thinks its ok that illegals break our laws too.....they think the same way as the people in California! What do you idiots think now?

The problem here is the spend spend spend mentality of the California Legislature. Time to give up protecting frogs, trees, and illegal aliens. Its that simple.

Can the taxpayers expect to charge interest on these IOU's? In my opinion, the taxpayers certainly should be able to charge interest, as if the shoe were on the other foot, the government would certainly charge us interest. Wonder if the government will accept an interest free IOU from me? Just curious!

California has become a state like many others in the country of
-The Haves- and Have Nots-. Some would call it Social Darwinism, the top wealthy minority pay little or no tax to help support the system, and the middle and low income carry the tax burden.. This country needs to start taking care here and stop trying to police the whole world! We are BROKE people.

We are being forced-fed immigration reform, but we should not reward foreign nationals who break the law. As ICE begins its auditing of any business who is believed to be sheltering illegal workers. We as a nation should implement Italy's brand new illegal immigration law. Instead of a slap on the wrist by our laws, we should demand that Washington makes illegally immigrating a felony with appropriate consequences. As Italy we should give the legal population the right to detain foreign nationals who shouldn't be here. After it's inception we can then use a points system to settle new immigrants, who are highly skilled, with professional scientific, computer or business credentials. American taxpayers can no longer afford to subsidize the businesses and illegal families with handouts. That's the predicament of California–SANCTUARY STATE–has brought upon itself, and its hurting population. Now the State must issue IOU's, extract higher taxes and restrict health care to low income legal citizens.

With yet another path to citizenship in this nations future, we had better take careful notice of the consequences? Without any doubt to process 13 to 20 million plus illegal immigrants is, according to Robert Rector of the reputable non-profit Heritage Foundation $2.5 TRILLION DOLLARS. It’s an accumulation of procedures necessary to investigate backgrounds of all those who come out of the proverbial shadows. But if and when another of these AMNESTIES is forced past the American voters, millions more will be equally ready to head for America, expecting a ninth Amnesty. The major one in 1986 was rife with fraud, a absolute disaster and was never enforced, that’s why our country has uncontrolled illegal immigration?

If we command of the Democratic leadership who originally tried to kill E-Verify, such as Sen. Harry Reid, House Speaker Nancy Pelosi, we have an ongoing chance of combating the illegal immigrants of stealing further into the workplace. With Obama admitting that unemployment is farther on the rise, why would they be entering discussions of forcing another Amnesty down our throats. E-Verify is rapidly catching on and accelerating in the workplace and should not be denied to the American worker. CALL YOUR SENATOR AND REPRESENTATIVE AND DEMAND It should be fully funded, permanent and an a Federal identity check for everyone in working America? NUMBERSUSA, CAPSWEB for more details. ICE has a phone number to call when suspicious activity is determined in the Factory, office, restaurant or any industry.

California seems to get all the attention but many states are struggling without any money too. California used to be such a free state, giving everyone free this and that. Bush certainly left a huge dent in this country. We cannot afford to elect another dumb candidate as our President.

California destroyed its tax base a long time ago with the reduction of real estate taxes. It has never really recovered. Couple that with the deficit spending programs of Governor Reagan (which he brought with him to Washington and ran up the largest federal deficit in history) and others, you really have the perfect storm. The bill has now come due for 40 years of stupidity. It all boils down to greed. Taxpayers happily demanded and accepted all the tax cuts, totally ignoring the common good. We now have the lowest taxes in the western world...be happy.

I'm sick and tired of people blameing the problems of the economy on illegals, they are not the ones that are running ur state, I bet ur more an illegal han they are. Where is ur native country? There's is across the border urs is across the ocean, the only real american is the native american. Pick up a history book.

What a JOKE!!

Yeah. Liberalism can't sustain itself, economically.

It should be I Hate U. The citizens had their chance to rasie revenue, but they voted down all the props a couple of months ago.

Time to suffer, fools.

Didn't Ken Lay and Enron have a lot to do with California's current
financial crisis? This mess surely did not happen over night.

CNN-–The home of Continuous Neverland News.

Good call Greg.
This time we should recall the legislators in state congress who are blocking budget cuts and protecting special interests.

WHat do you expect from a movie star for a governor?

I think it is time california and many other states get rid of these worth less democraps and get the budgets balanced. but then we do have a majority democrat congress that can stop the so called party of no. budgets won't get balanced and the reccession WILL get alot worse.

Soon California will break away and fall in to the ocean like the lost city of Atlanti and the we'll be handing them an IOU for a new state, hah!

Cut, cut, cut!

This just shows that the social experiment that is California has FAILED.

May as well print IOUs.....basically that's what the Treasury Depts issued printed and coined money is anyway. I don't think we have gold to back up our currency anyway....What will happen when China or someother nation decides to call in our debt?

This is what happens when you have a welfare warfare state. Stop subsidizing illigal immigration and legalize marijuana.

I gather that CNN is in the back pocket of Obama

untill such time that the populance sends the Dem. out to pasture the economy will continue to worsen, just as America will under the idiot Obama

John in California: Do you really think anyone beside people like yourself think that the blame lies with the Democratic Party? The problem is California's no other states will be issuing IOU's this year.

to Jon in Ca... absolutely right... until the state legislature is replaced by people who have a brain... we will continue to be in this mess.... the special interests, the unions, the outrageous pensions... and of course, those that are here illegally reaping benefits from those of us who pay the taxes... it has to stop... d.c. is on the same track; spend, spend, .... when it should be cut, cut, cut.... the waste that is in the stimulus and the omnibus bill is outrageous; the american people must start demanding accountability...

But the Governor is a big movie star! Come on, image is much more important to us voters than substance.We're happy to suffer to have a such a big celebrity as our Governor!

How UN-American is this? Americans go to jail for not paying their taxes, who gets a pass here? This makes me sick and I truly feel sorry for the Americans who live in California. This is indeed an Outrage!!!!!!!!

It's all Arnold and his fellow retardican's fault. I can't wait until they're all out of office!

The main problem is a lack of revenue due to the housing crisis. While it is obvious that some programs could be cut it still would not be enough. The failure is in our legislature that does not represent the people but is a stalemate between the GOP and the Dems. I will say at least the Dems came up with two plans...the GOP had zero. The GOP claims no bipartisan work. In reality, they refused to entertain any DEM ideas that is not bipartisan either. The Gov has a Sec of Ed as an advisor that does nothing but he won't give up anything either. In the end it is the people of CA that are hurt while our reps are just working on their next campaign. At this point though...the people are so angry that none of them will survive the next round of voting.

Jon in CA,

you must be one of them idiots from Orange County. You know, the richest county in the US which also happen to be the only county to ever go bankrupt in the US.

What all you conservative microbrains need is a little Singapourian justice, mabe it would knock some sence into you.

A State government is not like the federal government in that they cannot print money. Therefore, states must act more fiscally responsibile. However, most states were acting just like most families and running up debt and spending money they did not have to support unnecessary programs. Thankfully, now that has come to an end. All states, not just California, need to learn to live within their budgets. Eliminate programs and learn to live within the revenue (taxes) that you collect.

GI Joe,

You know, pretty soon we will run out of scapegoats.
Just remember, every time you point a finger, there are three fingers pointing back at you.

(P.S. Not to condone illegal immigration, but some of you folks who seem to blame most of the Cali's problems on the illegals, who coincidentally really can't defend themeselves therefore making your blames a cowardly act, sure did not speak this loud when Enron was robbing us dry – and we haved proof on tapes of them laughing about overcharging little old women....just a thought).

you know, it is sad that your in the pocket of a communist mutt

Greg, you're an idiot. Arnold has nothing to do with talk radio and if you think he's a conservative your kidding yourself. Everyone goes after Arnold, but keep in mind he has to work with the state legislature which can't even get a budget passed on time. California and the country are in the exact same problem, with the only difference being California cannot simply print more money. Don't worry I'm sure that Obama will bail them out too. "They're too big to fail."

Arnie himself can't balance the checkbook any more than Obama can. The money is controlled by the State legislature, just like it's controlled by Congress at a Federal level. Or didn't anyone take a government class in 12th grade?

olaf finkelstein,

The richest county in the US is Orange county, yet it is also the only county to ever go bankrupt in the US.

So to Rush and all his dil*os heads:

I guess the rich don't really pay their share of taxes like you claim.

A middle class person working everyday and after filing taxes, instead of their legal tax refund ( if owed one ) they will receive a IOU from the state. What a sad state of affairs. All state elected officials; congresspersons, judges, DA's, governor, Lt governor, etc should receive these IOU's instead of a paycheck. Then lets see how fast the budget can be balanced. It is time for the people of california to start paying higher property taxes, sales taxes, etc. instead of waiting for the federal government and people from other states to bail them out.

If it doesn't work for your personal checkbook, it won't work for California. Common sense is in short supply these days.

I live in California and if I were the U.S. I would cut us loose

what a mess

Can't wait till when Obama has to give Ious to the American taxpayer and then the people will wake up and smell the coffee.......

I have no sympathy for a state that continues to support illegals.

Wonder if the State will accept IOU's from it's citizens when they want to pay their taxes.

No surprise here, since CA's majority Third World.

The fed gov will probably step in at some point, even though the Great One has gone on record saying they won't.

As goes Cali ...

This is HILARIOUS. People who owe their futures to their credit card debt either pay up or get their credit ruined. How far would we all get if we just issued IOU's to our creditors instead? Actually, its a great idea and if California can do it, why not the citizens of America?

Who needs a good "credit rating" if you don't need the credit and would be better off walking away and using your income to purchase what you need with cash instead?

I wonder if any of the high ranking State employees received IOU's for their paychecks? I wonder if any of the six figure retired pensioners of the State received IOU's for their State approved "Golden Parachute" retirement payment plan? I bet only the taxpayers and subcontractors are the ones that got the worthless paper. If it were a tax refund, you wouldn't even be able to sue for the interest owed on YOUR OWN MONEY! Wake up America! I don't believe this is the Governors fault, the legislative branch controls what the governor can do with the budget. DEMOCRATS!

Stick to your guns Schwartzenegger!!

California needs to CUT, CUT and CUT some more.... The media will probably trash him for doing what must be done but, this man is truly doing what's best for California's future. You can't spend 13 billion dollars on Illegals year after year and think you are not going to have any budgetary problems... It's crazy and impossible to sustain.

Raise taxes and more and more of the taxpayers will leave your state leaving you with even less tax revenue – making things even worse.

Higher taxes won't solve the problem!!. First concentrate with WHY the State is broke and from there you are going to find the solution. Make all inmates pay for the a comondition! the ones who cannot pay! let them repair our roads under guard, control welfare! kick-out the joy riders!

Conservative/Republican dimwits need to look at this closely and understand that this is the end result of initiatives like Proposition 13. Cap the property tax structure and make it difficult to pass any new tax legislation, but continue to expect standard goods and services from the government, this is what you get. Some will argue that the real culprit has been unbridled spending. If so, then why didn't the Republican governors work to control it or stop it? Starting with Reagan, four of the last six govs have been Republican.

As a Californian, I can tell you that the bulk of the problem is that people aren't willing to pay their share. Between Pop 13 and the fact that it takes a 2/3 majority vote top raise revinues, the anti tax zealots are the cause of the collapse of this states economy.

Hate to tell you knee jerk right wingers, but taxes are the admission fee to society, and if you refuse to pay them the whole thing crashes and burns. SURPRISE!

The state government of California will be issuing IOUs worth tens of millions dollars to cover present spending. What's the big news about this? The United States federal government has been issuing IOU's in the hundreds of billions and soon to be several TRILLIONS of dollars for decades to cover spending. Where's the outrage about that?

A state full of Liberals is broke. It is hard to believe!!! And Pelosi is trying her best to carry on the CA tradition by breaking the American bank!!!

I love this idea. I wonder how my bank will feel when I pay my mortgage with an IOU??? Why not just use Monopoly money to pay your debts? Is this for real. Only in the world of Politics could something so far fetched be true!!!!

Whhhhaaat? the Obama Administrations model of Green excellence broke and busted? I find it amazing that left wing Democrats still are trying to blame the state of our National economy on the Bush Administration. One more time, it started with the Housing collapse, brought to you by a Democratic House and Senate during the Bush Administration. Special 2010 and 2012 attention should be attributed to the following key players: Barney Frank, Nancy Pelosi, Franklin Raines, Chris Dodd, Maxine Waters and of course ACORN. This is a list of many but not all of the propagators of failure in not only our economy but of our Government. The Obama Administration is clueless on how to correct the problem, the correction you will see will be a false recovery right around election time to instill a feeling of success in the lefts voting base. Remember, you cannot pump a trillion dollars into our economy and spend like their is no tomorrow without some picking up the tab. Whom might that someone be you ask? Take a look in the mirror, it be the American Taxpayer, white, black, red, yellow, Democrat, Republican et al!

California needs someone from the Administration to come and do what the Gov. is not able to do!!!! He has cut out all benefits to the severely disabled adults on Medicaid!!! We need help asap: my brother who is disabled, unable to speak, walk, care for himself cannot obtain medical care.

Michael Jackson's death might be a benefit to somebody besides Joe financially: California. The tourists flocking toLA should be a boon for the economy.

Kick the Illegals off of welfare and send them home.

Problem solved.

Having just returned from a trip to California, driving from LA to San Fran up the coast, I find it incredulous that there is no money for local government. It was the most ostentatious display of wealth I have seen in many years. Im a physician, but I can not live in Santa Barbara, San Luis Obispo, Carmel, Monterrey, most of San Francisico. Why – they all seem to be millionaires. Incredible houses, sports cars, fantastic restaraunts. It was sure beautiful but saddened me to see how the wealth is so concentrated.

So, people who have been waiting for their tax refund will be getting an IOU? How stupid is that?? Maybe they can pay off their mortgage and put food on the table with IOU's. Just how far will they get? Come on Arnold, get your state's affairs in order so my state won't have to bail you out!!!!!

Don't blame Arnold.... this problem is the DIRECT result of Democrats controlling the State Capital for decades!!

What is scarier.... democrats in DC using the SAME approach in addressing our country that bankrupted CA!!

You can't SPEND YOUR WAY OUT OF FINANCIAL PROBLEMS!! You must CUT your expenses.

So glad we did the recall to install the Governator. He's done such a tremendous job. This is what happens when you listen to talk radio.

It is sad to see this happening...but without a lot of belt-tightening up and down California, this will continue...

Arnold....come on...lets balance the check book.........