Friday, March 30, 2012

Save California Save Prop 13? Say What?

There is a lot of grumbling from Jerry Brown and the people in Sacramento we elected to work for us up there about Prop 13.  I agree in California we have a budget problem.  Everyone does and you can't overlook it.  I normally don't like to talk politics but this is an important issue for everyone that is being clouded by rhetoric and outright deception.  

Gov. Brown is blaming the budget problem on the rich and the land owners.  Specifically he says Prop 13 killed the state and county budget.  When a company loses money they borrow a little and then start cutting.  Thousands lost their jobs at airline after airline after September 11th.   Walk in to any airport and look at how many computer kiosks replaced people.  The line at the DMV is still around the corner every morning in Newport Beach Ca.

When a company can't pay it's bills, the state shuts it down and takes away the owners property.  Maybe it is time the Governor move into a FEMA trailer for a while.  After all he has had since 1978 to figure out how to lead a government and budget accordingly.  

Governor Brown is complaining that his credit card is maxed out and he needs more money.  If you or I do that the banks say no.  Our choices are simple.  1. Go bankrupt and lose everything, which I wouldn't do. 2. Negotiate a better deal with your creditors and workers, and 3. Work harder to add value.  Right now number 3 is the choice the Governor is overlooking.

Instead of chasing businesses out of the state that create jobs, maybe he should welcome them.  Make it harder to collect unemployment, and easier to employ.  That increases income to the state and decreases expenses.  Instead he cut the state employee roster just 1.3% while the state lost nearly 8% of the private sector jobs.  The private sector in some way shape or form pays all of the bills for both the private and public sector.

When the state of California Economy shrinks 20%, you can't cut 1.3% and expect to keep up.  That is simple bad fiscal management we all have to pay for, both now and later.  Since 1999 California's GDP is nearly off 50% according to the analysts at Chase.

Governor Brown anti business budget for 2012 chases businesses out of the state and yet he wonders why he can't get a budget increase.  That is like chasing your boss out of the room with a broom stick and promising the people standing there the TV's that he was carrying in.  

If you let the government raise taxes at will, two things happen.  The people that can really afford the taxes leave, or it turns out the taxes are just rhetoric.  Just look at the residents of Incline Village Nevada that are former California residents.  Or take a look at how little President Obahma's "Millionaires Tax" really created in revenue.  Tax hikes on the rich don't even scratch the surface.

We have to face facts, it is time to hold the elected representatives fiscally responsible.  That means we need to take their charge cards away.

Everyone knows that when you take out a loan for something the interest fees make it cost a lot more.  In California, cities have high permit prices to help pay for things like fire stations and police stations and schools before the neighborhood is finished.  Paying in advance is how investors get rich and states can do more with less money.  Politicians don't like it because they have to be responsible.

California wants to change things and the Governor says Prop 13 is killing his budget.  When home prices skyrocketed in 2006-2008 far outpacing inflation, you didn't hear any county or state rep talking about how they were saving or investing the new income.  What new income you ask?  Well, in 1995 I bought a home for $235,000 that the previous owners paid just $75,000.  That meant an increase in the tax income from my home of over 300% to the county.

Did the county save that money?  Over the next 4 years, 32% of my neighborhood sold.  Statistically in California from 2003-2008, at least 50% of the homes changed hands and increased the tax revenue to the locality 50% or more.  Many areas got 100% raises in tax revenue.  Did you get a 100% raise? Did you hear them complain?  Take a look at where the money went and you will quickly vote no and vote them all out.  

In 2000 the local schools attempted a bond measure.  I brought the increase in taxes due to the new neighbors to the meeting and the measure quickly died.  The school district didn't bother to tell anyone they had a 400% increase in income, and a 5% decrease in students over the previous 5 years.  

Don't be fooled by the man behind the curtain.

In California we have two problems. First we have a very high number of people who have "good jobs" working for the state.  Working for the government should be a service.  We should all give four years just so we can see how crazy people get when they are trying to register a car in the DMV line.

In many border areas, the "State" workers don't even live in the state.  With high unemployment, California is hiring out of state workers and contractors to do the job.  Why aren't we training people receiving benefits from the state to do these jobs?  The answer is simple. A free ride buys votes and Governor Brown depends on it.

Politicians are getting very good at pulling the heart strings and using the very unions they helped create against you.  You don't want to lose teachers do you?  You don't want to lose firemen do you?  Did you once hear "You don't want to lose your representative do you?" or "You don't want your representative to lose his government car do you?"  Why does he get a car and I have to pay to commute to work anyway?

Maybe "they" should start cutting the budget and start with their salary and benefits.  Maybe they'll quit chasing business out of the state and figure out businesses bring in money, so they don't have to keep raising taxes to pay their bills.

Just think all of this through.  If we repeal Prop 13 we all know taxes go up.  If taxes go up, house payments go up because most people have their taxes paid by the bank.  If people are having trouble with their house payments now, imagine what happens when the payments go up again.  Do you want your vote to cause people to lose their homes because the rent went up or the payment went up?  I don't, the banks don't and you don't.

Personal bankruptcies are still on the rise in California, let's not push anyone else over the edge.

Let's remind Governor Brown, and the other representatives in Sacramento who they work for.  Keep prop 13 and make them learn to manage money better so we cal all save California.  

Now I have to go find the website to donate to that Jarvis guy.

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