Calif. counties threaten to keep taxes from state

[baja]

Calif. counties threaten to keep taxes from state
By JUDY LIN – 1 day ago
SACRAMENTO, Calif. (AP) — California counties are considering forms of tax revolt after the state imposed a 30-day payment delay that could potentially become much longer under Gov. Arnold Schwarzenegger's proposal to preserve cash.
The Riverside County Board of Supervisors has authorized staff to file a lawsuit, while elected officials in Colusa County decided to impose a 30-day delay on sending any taxes and fees it collects to the state after the state controller announced a delay in refunds to taxpayers, money for college tuition-assistance programs and payments to state vendors starting Feb. 1.
Schwarzenegger has proposed delaying the payments by as long as seven months, which Jim Wiltshire, deputy director of the California State Association of Counties, said could result in $3.5 billion in deferment to the state's 58 counties.
"I just think we need to look at all our options," said Don Knabe, a supervisor of Los Angeles County, which is also considering payment delays. "When they say deferred payments, they don't say you can defer the services."
The rift between state and county government comes amid growing frustration over the inability of Schwarzenegger and state lawmakers to reach a midyear budget agreement. The state is facing a budget deficit of $42 billion by June 2010, and the governor is battling state lawmakers who oppose possible tax hikes and labor leaders who have sued over imposed state worker furloughs in efforts to save money.
Most counties say their cash reserves can help them weather a 30-day delay, but many are concerned that an extended, monthslong holdup could force some county governments to shut down.
"We will have to shut the doors," said Kim Dolbow-Vann, a supervisor in Colusa County, north of the state capital, adding that the county didn't have the "borrowing capacity" to fill delayed payments.
She said Colusa County operates on a $22 million annual budget and would run out of cash within three months if the state stopped sending payments.
Wiltshire said none of the counties would run out of cash during the 30-day delay, but after that period, he predicted some counties could deplete reserves in as little as two weeks.
He also stressed concern over county-run programs that provide assistance to the working poor, foster children and seniors, which depend on money from the state.
Schwarzenegger's finance spokesman, H.D. Palmer, said it was unclear whether the counties' withholdings would have a significant effect on state government since counties collect property taxes that go to public schools. The state collects sales and income taxes.
Palmer suggested the state could in turn withhold sales tax revenue from the counties because the state needs to ensure it has enough cash throughout the year to pay its debt.
"We don't put these proposals forward lightly," he said. "We will move heaven and earth to ensure that bond holders will be paid on schedule."
Schwarzenegger and lawmakers have missed a self-imposed Feb. 1 deadline to reach a budget deal as the state runs dangerously low on cash reserves. Meanwhile, Standard & Poor's downgraded the state's $46 billion general obligation bonds this week, leaving California with the worst state credit rating in the nation.

[baja]

Revolt brews in counties
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By Loretta Kalb and Robert Lewis
lkalb@sacbee.com
Published: Thursday, Feb. 05, 2009 | Page 1A
Counties in California say they've had enough – and they aren't going to take it anymore.

In what amounts to a Boston Tea Party-style revolt against the state Capitol, they're threatening to withhold money.

Los Angeles is considering such an option. And Colusa County supervisors said they authorized payment delays for February.

"We didn't vote on it, because I don't think anybody wants to go to jail," Colusa County Supervisor Kim Vann said.

Closer to home, Sacramento County is planning to file a lawsuit this week against the state and Controller John Chiang for withholding millions of dollars – much of it for social service programs.

"The Legislature authorized those expenditures, and (the controller) has decided to withhold it," said Susan Peters, chairwoman of the Sacramento County Board of Supervisors. "I believe it's possible other counties will be joining in the action."

Riverside County is looking at a similar lawsuit but plans to go one step further. It authorized going to court to relieve it from having to provide state-mandated services without state funding.

Hallye Jordan, a controller spokeswoman, said Chiang "shares the frustration of counties" but was forced to act because of the failure of the Legislature and governor to address the budget deficit.

"It's an awful situation," she said. "We understand that many counties are suffering."

Regardless, a coalition of six Southern California counties is headed to Sacramento for a Feb. 12 meeting to call attention to the counties' plight, Riverside County spokeswoman Lys Mendez said.

By the time leaders from Riverside, Los Angeles, Orange, San Diego, Imperial and San Bernardino counties come together, the revolt could be at full steam.

"I think it just reflects the severity of the problem, and folks are just trying to find a way to keep (programs) going," said Jim Wiltshire, deputy director of the California State Association of Counties.

Frustration has been spreading since last week, when the state controller vowed to delay payments to counties for health and social services.

"When we hear things like, 'We're out of cash and you're going to have to borrow the money,' it doesn't make us very happy," Yolo County Supervisors' Chairman Mike McGowan said.

McGowan said the county would look for a way to fund vital services such as mental health programs, CalWORKS, food stamps and child protective services.

That would mean borrowing about $5 million to cover mandated program expenses, McGowan said.

"We've heard rumors that the (state's) deferral approach will be longer than one month," he said.

In that case, McGowan added, there are smaller counties that will "simply go out of business. They'll not be able to borrow the money."

One budget proposal calls for the state to delay $3.5 billion in payments to counties over seven months, Wiltshire said.

"Counties just don't have the cash position to operate those programs and wait for a check to come in September," he said.

The rumor that the state could extend the delayed payments to counties sent a chill through Colusa County, which qualifies as small with only 22,000 people.

If the state delays payments for a longer period, "we can stay open for three months – period," Colusa County's Vann said.

If all counties withheld funds, money denied the state would total $675 million over a year, said Wiltshire.

That amount represents court receipts that counties remit to the state, he said.

In addition to filing suit, Sacramento County officials are considering withholding money. While counties do collect property taxes for the state, county officials doubted that money would come into play.

"We need to know the ramifications before we do something rash that has consequences," Supervisor Roberta MacGlashan said.

While deferring property tax revenue money to the state might seem like a good idea, that money goes in part to fund education. The county doesn't want to hurt schools while taking a stand against the controller's actions, she added.

There also could be a cost to withholding money from the state.

Terri Sexton, associate director of the Center for State and Local Taxation at the University of California, Davis, said she's never seen anything like this grass-roots revolt.

"But, of course, the state has never been in this fiscal position," Sexton said. "At some level, it doesn't make any difference whether the counties are suing the state or whatever.

"You can't squeeze blood out of a turnip. The money doesn't exist. What does it ultimately mean? Will there be cutbacks in those services? I think that's where we're headed."

Los Angeles County started the movement Tuesday when its Board of Supervisors considered holding back money from the state in a move that screamed: Give us our money or you won't get yours.

"The deal is the county has got bills to pay," said Gerry Hertzberg, policy director for Supervisor Gloria Molina. "If the state doesn't act, how do you plan how to budget?"

Los Angeles County is expecting to miss out on as much as $105 million a month as a result of the deferred state payments.

Other counties are in similar positions, so it came as no surprise to Hertzberg that others might join the revolution.

"It's not at all surprising," Hertzberg said. "We've got obligations."

Sacramento County's MacGlashan said despite the counties' threats to withhold, she wasn't certain all would follow through.

"It's really more of a stunt," she said. "But sometimes it takes a stunt to get people's attention."

[Garcia Bronco]

This is what happens when you depend on Government for services.

[baja]

http://www.msnbc.msn.com/id/28987947/

[baja]

Anarchy sets in...

[baja]

Originally Posted by Garcia Bronco

This is what happens when you depend on Government for services.

I guess you just don't get how serious this gets.

[Garcia Bronco]

Originally Posted by baja

I guess you just don't get how serious this gets.

I don't care. Let it burn. they have no one to blame but themselves. It's just more failed liberal polices in action.

[defenseman]

Take a good look, it's where the entire country is headed if the dems get their way. Spend your future on what you can enjoy today, nice plan eh....dman

[defenseman]

Originally Posted by Garcia Bronco

I don't care. Let it burn. they have no one to blame but themselves. It's just more failed liberal polices in action.

Those same "failed liberal policies" are about to place their best foot forward in an attempt to take the rest of down the "california highway"........enjoy yourself while you still can folks...dman

[Meck77]

Originally Posted by baja

Anarchy sets in...

Anarchy? You wish don't you. Who needs terrorists when America has traitors wishing to see her downfall.

[baja]

Ya I can hardly wait for the blood to run like a river down the streetsof the cities of the world and the bodies to be stacked like cord wood. Just the thought of all that carnage makes me gitty. Wonder how many bodies you can stack in a 10 yard dump truck. What is the over under?

[Spider]

Damn it gets so old coming down here and setting right wing nuts strait ... do you ****ers ever look up anything ? just spit out what ever enters your ****ing hat rack ? Here is an op ed piece , I normally dont post these , but this one is good
http://www.californiaprogressreport....ials_plac.html

[baja]

Probe: Govt. Bailout Exceeded Market Value of Firms’ Stocks, Assets

A congressional investigation has found the Bush administration overpaid tens of billions of dollars in its purchase of bank stocks and assets under the Wall Street bailout. The Congressional Oversight Panel says the government received assets with a market value worth at least $78 billion less than what it invested. That translates to a roughly thirty-cent loss for every dollar the government spent.

[Bronco Bob]

Originally Posted by Garcia Bronco

I don't care. Let it burn. they have no one to blame but themselves. It's just more failed liberal polices in action.

As opposed to the failed conservative policies we've had for the last 8 years?

[Garcia Bronco]

Originally Posted by Bronco Bob

As opposed to the failed conservative policies we've had for the last 8 years?

You mean the past two years?

[Bronco Bob]

Originally Posted by Garcia Bronco

You mean the past two years?

No, I mean the last 8 years.

[Garcia Bronco]

Originally Posted by Bronco Bob

No, I mean the last 8 years.

What about the past two years?

[peacepipe]

Originally Posted by Garcia Bronco

This is what happens when you depend on Government for services.

This is what happens when a republican is the gov.

[Garcia Bronco]

Originally Posted by peacepipe

This is what happens when a republican is the gov.

.

[Dukes]

Originally Posted by peacepipe

This is what happens when a republican is the gov.

[Bronco Bob]

Originally Posted by Garcia Bronco

What about the past two years?

What's different about the last two years. Bush was still the president.