Wednesday, December 17, 2008

California getting closer to bankruptcy

California freezes $3.8 of projects:

The state's top three financial officials voted unanimously today to freeze $3.8 billion in financing on road, levee, school and housing construction projects throughout California in the most drastic fallout yet from the state's cash crisis.

Among the efforts that will be idled or postponed are a carpool lane on the 405 Freeway between the 10 and 101 freeways and $373 million in repairs and overcrowding relief for Southern California schools, including emergency repairs at nine Los Angeles Unified School District high schools and five Compton schools, according to lists compiled by state agencies.

Cal Pers loses 103% on real estate investments:
At the height of the property bubble, California's giant pension fund, Calpers, made a fateful decision: It aggressively poured money into real estate. As a result, today it's one of the biggest owners of undeveloped residential land in America.

Partly because of these investments, California Public Employees' Retirement System is struggling to avoid one of its worst annual declines since its 1932 inception. Calpers has lost almost a quarter of its assets since July 1, the start of the current fiscal year.


Realestateslasher said...

10% Sales Tax will make us the Best & safest State in the US
All in favor say Ay

Anonymous said...

Ah, El Paradiso Socialisto comes unglued. All that free housing, education, medical care, dental care, and food for the ILLEGAL ALIENS has taken its toll. Entire cities reduced to dirty, crime-ridden Third World gutters, paid for by the falling tax base. Ha!

Who will pay the taxes now that the smart people have left? Illiterate illegal aliens?