Pennsylvania is Broke

[swpa19]

Maybe not that severe, but the state under "Teamster Thug " Eddie Rendell is in bad shape.

State loses authority to pay bill, vendors warned




Most state employees have been ordered to report for work. State Police, State Correctional Officers must report for duty in a letter recieved by the above groups. And, in regards to State COs the letter adds: To curb any violence or dissention, prisoners will continue to be paid. What is wrong with that picture. Are the Monkeys running the zoo?

The state's welfare checks, debt payments and pensions will continue to be sent out and self-funding agencies, such as the Liquor Control Board, will not be affected

So far, government services in Pennsylvania have not been interrupted and the tens of thousands of state employees are being asked to continue working even though they would begin to miss pay starting July 17 and receive no pay at all after July 24. Once a budget is approved, they would be paid retroactively.

Legislators missed their July paychecks


http://www.philly.com/philly/wires/ap/news/state/pennsylvania/20090701_ap_statelosesauthoritytopaybillvendorswar ned.html

[Richard]

PA isn't alone.

Richard's $.02 :munchin

IOUs Spell Uncertainty For California Small Businesses
USA Today, 3 Jul 2009

Business consultant Katrina Kennedy has taken her young son out of preschool and put a family vacation on hold. Dairyman Mike O'Kelly is wondering whether he is going to have to let employees go.

The problem? They rely on contracts with state agencies for much of their business and, cash-strapped California may start sending them IOUs instead of money until the state has enough cash to cover all payments.

"I've dealt with the state for many, many years, and the failure of the state to come up with a budget has always caused problems for July and August," said O'Kelly, owner of Morning Glory Inc. in Susanville, which supplies milk and eggs to prisons. "This particular economic crisis, however, has me more worried than all of the others combined."

The reason for the IOUs is California's $26.3 billion deficit. Lawmakers have not been able to agree on a balanced budget by cutting spending, raising taxes or both.

Without a balanced budget, the state controller's office says the treasury does not have enough cash to meet all its financial obligations. So IOUs were scheduled to go out beginning Thursday to private contractors, state vendors, people getting tax refunds and local governments for social services.

(cont'd) http://www.usatoday.com/news/nation/2009-07-03-california-small-businesses_N.htm?csp=YahooModule_News

[ZonieDiver]

CA is issuing "IOU's"! Yeah, sure - I'll take one! :boohoo

[Pete]

CA is issuing "IOU's"! Yeah, sure - I'll take one! :boohoo

Might be a good deal.

I'm sure the Pres could just print some more money and bail out the states.

All it costs is a little paper and some ink.

[greenberetTFS]

Might be a good deal.

I'm sure the Pres could just print some more money and bail out the states.

All it costs is a little paper and some ink.

I can't see what the problem is, all BHO has to do is just print more money.....That's an easy fix. :rolleyes: Like Pete said all it costs is a little paper and some ink..:eek:
Quit worrying about the money,our fearless leader has everything in control.....;)

Big Teddy :munchin

[Surf n Turf]

The problem? They rely on contracts with state agencies for much of their business and, cash-strapped California may start sending them IOUs instead of money until the state has enough cash to cover all payments.

The reason for the IOUs is California's $26.3 billion deficit. Lawmakers have not been able to agree on a balanced budget by cutting spending, raising taxes or both.


Richard,
I thought you were going down to the water on vacation.:D
Don’t the IOU’s that Calif is printing violate of Article I, Section X of the Constitution?
SnT

“Article I
Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.”

[BMT (RIP)]

I wonder how the men I served with from PA feel now. They were proud of theit state.
They would say FL doesn't have anything but warm weather and beach's.

My reply would be " maybe so,but we don't have a state income tax". :D


BMT

[swpa19]

BMT

I wold really like to take exception to your statement. Sad thing is, I cant. You cant argue with what is true. And your right my end of the state is loaded with men that youve served with. Heroes all.

[exsquid]

Woh woh woh, hold up there a minute. I never paid State Income Tax in PA. I paid Commonwealth Income Tax. Let's not forget PA is one of two Commonwealths, VA being the other, in the USA. Hey, all those union idiots voted Rendell in to office. Tough on em. I loved growing up in PA, but man, the unions, welfare recipients, & bleeding heart liberals run that sewer of a government and it ruins the place for me. I think I am going to stay here in the south where we are still "right to work" states.

x/S

[nmap]

As has been pointed out, Pennsylvania is not alone.

Here's a piece on California's IOU scheme: LINK (http://www.moneyandmarkets.com/day-of-reckoning-8-34512)

In essence, a great many entities - governments at every level, along with companies and individuals - are attempting to defer their debts until things get better. People want (desperately) to believe that green shoots are coming.

However, we must ask ourselves the question: What if things don't get better?

Unless and until employment improves - and by that I mean more jobs, and more pay for those jobs - consumers simply cannot generate the revenues needed to support private companies or governments.

We might also want to ask ourselves what happens when governments are no longer able to pay the various entitlements they have committed to. Those include salaries, pensions, welfare, police and fire protection, and so forth. If the downturn continues, there will not be any money to pay those promised sums.

What does that lead to? Nothing pleasant, IMO.

[ZonieDiver]

While dining on pizza in downtown Phoenix last week, I met a couple from CA who owned a restaurant. They were there to "check out" this pizza place and were thinking of opening a pizzeria in the LA area, where their Mexican restaurant is located. One of them related to me that the state of CA had sent them a bill for their sales tax receipts - two weeks into the future - based on the average of their receipts over the last six months!

Wow, what a concept - "tax it forward"!

[Ret10Echo]

Maybe not that severe, but the state under "Teamster Thug " Eddie Rendell is in bad shape.

Now wait a minute, that isn't supposed to happen ......you guys got GAMBLIN'...Maryland is convinced that allowing gambling is the absolute answer to all financial woe...

[Monsoon65]

Yeah, Rendell is just what PA needed. Gambling hasn't done a thing and we're in the hole.

Of course, his solution to all this: Raise taxes!