(Rather scary stuff… – promoted by Brian Leubitz<\/i>)<\/p>\n
First, the glimmer of good news: after wasting $3B because they couldn’t come to an agreement by June 30…giving a secret $2B tax credit to Cal’s largest corporations in the middle of a budget crisis…issuing IOUs and seeing the state’s credit rating plummet…after banks stopped accepting IOUs because California’s money is no good…finally, the Governator and legislators met again yesterday to express optimism.<\/p>\n
The bad news: it’s fire season, and vendors for the state Department of Forestry & Fires (CalFire) are refusing to do business with the state. On an economic blog: <\/p>\n
I work in the aircraft repair\/parts industry in California and thought I’d let you onto something. Many vendors to the CDF (California division of forestry) air operations have outstanding bills going back to last year. My company just put all California agencies on cash or credit card only. Many others are refusing to sell to the CDF because of huge amount of unpaid and late bills. We don’t even get Registered Warrants!<\/p>\n
Mish, this is scary. I know of one company that is doing repairs knowing they won’t get paid just because they do not want to see fire fighting aircraft grounded
\n<\/p><\/blockquote>\nThis week in California, where the southern part of the state has been sunny, hot, and dry, the northern part is the same but with dry lightning strikes in foothills, and fire season runs from July 1 to June 30:<\/p>\n
7\/11\/09, a 30 acre brush fire in Antelope Valley threatened homes before being contained.<\/p>\n
7\/11, a a 200 acre brush fire in Los Padres National Forest heads toward the wilderness boundary, as all air tankers in Southern California are committed to incidents at this time (boldface in original).<\/p>\n
7\/8\/09, an 80 acre brush fire near the Getty Museum caused the museum and Mt. St. Mary’s college to be evacuated.<\/p>\n
7\/7\/09, the Backbone Fire broke out in a rugged part of Siskiyou County. As of 10 AM on 7\/11, it’s 25% contained after burning over 5500 acres.<\/p>\n
Also on 7\/7\/09, the Elm Fire burned 270 acres in Riverside County before being fully contained.<\/p>\n
And, of course, lots of tiny fires have been lit in one smoking tent near the Governor’s Mansion in Sacramento, where smoking is not allowed indoors. The tent is “about 15 feet square, carpeted with artificial turf and outfitted with stylish furniture, an iPod, a video-conferencing terminal, trays of almonds, a chess table, a refrigerator and a large photo of the governor.” In it, the Governator himself declares to a NYTimes interviewer that he’s
\n<\/p>\n“perfectly fine,” despite the fiscal debacle and personal heartsickness all around him. “Someone else might walk out of here every day depressed, but I don’t walk out of here depressed,” Schwarzenegger said. Whatever happens, “I will sit down in my Jacuzzi tonight,” he said. “I’m going to lay back with a stogie.” <\/p><\/blockquote>\n
The state has asked its contractors and suppliers to cut back 15%. Food service contractors, who typically claim a 2-3% profit margin, are being asked to cut 15%, reports the WSJ. And you wonder why no one wants to work with the state fire department?<\/p>\n
This weekend, California leaders report that they’re making progress: <\/p>\n
Bass, who walked out of negotiations earlier in the week, said Saturday that her concerns have been addressed and that there did not appear to be any insurmountable obstacles to reaching a deal. She described the talks as complicated.<\/p>\n
“I think what has happened over the last 48 hours has been the most productive in the last several weeks,” the Los Angeles Democrat said. “We are just not finished.”
\n<\/p><\/blockquote>\nOf course, Bass doesn’t tell reporters that they’re making progress at the expense of suspending Proposition 98, which guarantees that 40% of all general education revenue go to education. The Sacramento Bee reports that Arnold’s hostile suspension has rocked the state Capitol. The California Teachers Association and SEIU are both gearing up for fights.<\/p>\n
Yet, if a cruel budget is not passed, October will be crueler still. The IOUs are only going to some creditors — generally, the have-nots, while the haves get paid in cash. By October, the state will run completely out of cash, the IOUs will (allegedly) be redeemable, and the Santa Ana winds will blow. <\/p>\n
Note: I originally posted this at DailyKos, where I know how to use links.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
First, the glimmer of good news: after wasting $3B because they couldn’t come to an agreement by June 30…giving a secret $2B tax credit to Cal’s largest corporations in the middle of a budget crisis…issuing IOUs and seeing the state’s credit rating plummet…after banks stopped accepting IOUs because California’s money is no good…finally, the Governator and legislators met again yesterday to express optimism.<\/p>\n
The bad news: it’s fire season, and vendors for the state Department of Forestry & Fires (CalFire) are refusing to do business with the state. On an economic blog: <\/p>\n
I work in the aircraft repair\/parts industry in California and thought I’d let you onto something. Many vendors to the CDF (California division of forestry) air operations have outstanding bills going back to last year. My company just put all California agencies on cash or credit card only. Many others are refusing to sell to the CDF because of huge amount of unpaid and late bills. We don’t even get Registered Warrants!<\/p>\n
Mish, this is scary. I know of one company that is doing repairs knowing they won’t get paid just because they do not want to see fire fighting aircraft grounded
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