Sunday, February 28, 2010

California - The Nail In The Coffin

In 2006, Republican In Name Only (RINO) Governor Arnold Schwarzenegger signed Assembly Bill 32, California's Global Warming Solutions Act. It is the California version of Obama's CAP & TAX Socialist Scheme. This California law requires state bureaucrats to write detailed rules to cap green house gas emissions, mandate reporting by emitters, plan what emission reductions must be achieved and how, provide alternative compliance mechanisms and mandates, which will include fines on business, come up with government-determined "equity" between regulated entities and ensure that rules don't disproportionately impact low income communities among other regulations. This is a regulation nightmare and when combined with all the other crazy laws in California; another huge job killer.

The bureaucrats have been writing the Global Warming regulations since 2006 and are still not done. To make a long story short, the California State University professor, who was commissioned to calculate the law's impact on small businesses, concluded that this law will increase their cost of doing business on average by $49,691 more per year. Families will face $3,857 in increased costs. As such, consumers will have to reduce discretionary spending by 26%. As a result, it is estimated that AB 32 will cost 1.1 million jobs in the state of California. It is estimated that AB 32 will increase electricity prices alone by 14% with the trickle down impact on the entire state economy.

Assembly Bill 32 is the nail in California's coffin. Schwarzenegger has worked with Democrat Socialists during his tenure in office to bankrupt the State of California. Together they have raised taxes by $12 Billion and borrowed billions of dollars more by selling bonds at very high interest rates to fund current operating expenses, rather than infrastructure projects, which is the traditional use for bond money. Each year, California's elected officials dig the hole deeper. This year's projected state budget deficit is over $20 Billion. Rather than cut California's bloated bureaucracy and pensions, the Governor and the Democrat Socialists that control Sacramento continue to use smoke and mirrors and more borrowing as though tomorrow will never come. Fortunately, the state of California cannot print money, Obama's mode of funding the federal deficit; however, Schwarzenegger keeps begging Obama to print money for California too as he goes to Washington with his hand out for more bail out money.

California has the highest taxes and cost of living in the country. Assembly Bill 32, this Global Warming legislation, will just make matters worse and cause even more companies to leave the state. 25 years ago, I worked in Sales based in California. At the time, my Western region territory, which included both California and Texas had about 350 major corporations in it with 5,000 employees or more. Of those 350 companies, 25 years ago, about 200 were in California and 80 were in Texas. Today, that ratio is completely reversed. About 90 are in California and 210 are now in Texas. The fact is that companies have been leaving California for years driven out by Socialist Big Government.

The current official unemployment rate in California is more than 12%. If all are counted it is probably above 17%. Instead of enacting pro-growth tax cuts and legislation designed to keep jobs in California, Governor Schwarzenegger and the Democrat Socialists that control Sacramento are out of control and seemingly determined to destroy the California economy. Sound familiar? As goes California will go the nation if we allow President Obama to "transform" the United States into a Socialist nation.

We must take back our country in 2010 and 2012 by electing common sense Conservatives that support limited government, a balanced budget, lower taxes and regulations, term limits, a strong national defense, the right to bear arms, the sanctity of life and family values. Most important, we must elect Conservatives who believe in the US Constitution, as written by our Founding Fathers not past Presidents, Congresses and the Courts. We can do it. We must do it to prevent the California contagion from spreading across the country.

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