It is official. California is broke. Decades of leftist leadership, and liberal economic models, has destroyed the California economy, and has made the State that was once seen as a land full of opportunity into a place of massive debt and out of control taxation. Once people flocked to California in search of fulfilling their dreams, but now the people who live here are just looking for a way to escape before it is too late, and they have nothing left of value.
I, myself, am looking forward to the day that I can bail out of this state, having property on the Oregon Coast. But, for the time being, since my kids wish to remain here for the time being, and my two grandchildren are here, I shall remain in Southern California.
All is not lost. I was contacted last night by Email with a press release that proclaimed the State of California began issuing IOUs to its creditors as of July 1, 2009. State Assembly Bill 1506, if passed, would allow recipients of the IOUs from the State of California to use those IOUs to pay any obligations owed to the state.
How thoughtful.
California is basically giving their creditors an equivalence of a gift card.
Cuts in education, and more massive tax hikes, are on the horizon - which will further deepen the economic woes of California.
Suddenly, 80 acres of forestry-grazing land with a creek running through it on the Oregon Coast is beginning to sound real sweet, right about now.
-- Political Pistachio Conservative News and Commentary
By Douglas V. Gibbs
The press release regarding AB 1506 is below:
For Immediate Release
July 1, 2009 - Anderson Bill Would Lessen Pain of IOUs
AB 1506 allows IOUs to be used as payment for obligations to the state
Assemblyman Joel Anderson held a press conference this morning on the steps of the Capitol to announce his critical legislation, Assembly Bill 1506. The bill would allow recipients of IOUs from the state to use those IOUs as payment for any obligations owed to the state.
For example, if you are a business with state contracts and you receive an IOU for $50,000, you could use that IOU as payment for your payroll taxes, DMV fees or any other obligation to the state.
In addition to private businesses, AB 1506 would apply to individuals, cities, counties, hospitals, healthcare facilities, nonprofits, and any other entity receiving an IOU.
"While California may get away with piling up debt and then skipping out on its bills, the rest of us cannot," said Assemblyman Anderson. "Businesses with state contracts, which are already operating on slim or no profit margins, will go under. This is a bill to protect jobs and the economy. For that reason, AB 1506 deserves bipartisan support."
Gloria Freeman, President of Staff USA, Inc., joined Assemblyman Anderson in support of the bill. Her company supplies medical staff for state prisons and other facilities. State contracts represent 80% of her business.
"I have already laid off 5 employees in preparation for IOUs," said Freeman. "That’s why it’s important to pass AB 1506, so that we can mitigate these impacts. For many businesses like mine, AB 1506 could be the difference between life and death."
AB 1506 has 22 coauthors and is supported by a variety of businesses, individuals, nonprofits, trade associations and cities.
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