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Calif​ornia​ Bankr​upt - Arnol​d Decla​res Fisca​l Emerg​ency




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Schwarzenegger declares fiscal emergency in California
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Dec 1, 2008
By JULIET WILLIAMS
Associated Press Writer

http://www. breitbart. com/article. php?id=D94Q55T80&show_artic...

SACRAMENTO, Calif. (AP) - Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called lawmakers into a special session to address California's $11.
2 billion deficit
The state's revenue gap is expected to hit $28 billion over the next 19 months without bold action.
The emergency declaration authorizes the governor and lawmakers to change the existing budget within the next 45 days

Without quick action, the state is likely to run out of cash in February

Schwarzenegger and Democrats have proposed a combination of tax hikes and spending cuts, but Republican lawmakers are steadfast in their refusal to raise taxes

Lawmakers failed to reach a compromise during the special session Schwarzenegger declared last month, pushing the problem to a new Legislature that was being sworn in Monday

The crisis worsens each week, so the Republican governor did not want to waste any time in declaring a special session, said his spokesman, Aaron McLear

"It's important that we start on Day One so the new Legislature can start immediately to solve our fiscal crisis," he said

There appeared to be little reason to believe that Republican lawmakers would budge on their opposition to tax increase

"If anything, I think our resolve (against raising taxes) is deeper than it has ever been because of the economic realities," Senate Minority Leader Dave Cogdill said Monday

Democrats don't have the two-thirds majority in either the Assembly or Senate that is required to pass tax increases or a state budget


November 12, 2008 - Nearly 90-percent of homeowners in Mountain House, California owe more on their mortgages than their houses are worth Hundreds of residents are being forced to hand their homes back over to the banks


One homeowner bought a foreclosed property on Prosperity Street in Mountain House, Calif

CLICK for interactive map - Where Homes Are Worth Less Than the Mor...

A California town drowns as home values sink

By David Streitfeld
November 11, 2008

MOUNTAIN HOUSE, California: This town, 59 feet above sea level, is the most underwater community in America

Because of plunging home values, almost 90 percent of homeowners here owe more on their mortgages than their houses are worth, according to figures released Monday. That is the highest percentage in the country.
The average homeowner in Mountain House is "underwater," as it is known, by $122,000

A visit to the area over the last couple of days shows how the nationwide housing crisis is contributing to a broad slowdown of the American economy, as families who feel burdened by high mortgages are pulling back on their spending

Jerry Martinez, a general contractor, and his wife, Marcie, an accounts clerk, are among the struggling owners in Mountain House.
Burdened with credit card debt and a house losing value by the day, they are learning the necessity of self-denial for themselves and their three children

No more family bowling night. No more dinners at Chili's or Applebee's.
No more going to the movies

"We make decent money, but it takes a tremendous amount to pay the mortgage," Martinez, 33, said

First American CoreLogic, a real estate data company, has calculated that 7.6 million properties in the country were underwater as of Sept. 30, while another 2.1 million were in striking distance. That is nearly a quarter of all homes with mortgages.
The 20 hardest-hit ZIP codes are all in four states: California, Florida, Nevada and Arizona

"Most people pay very little attention to what their equity stake is if they can make the mortgage," said First American's chief economist, Mark Fleming.
"They think it's a bummer if the value has gone down, but they are rooted in their house"

And yet the magnitude of the current declines has little precedent.
"When my house is valued at 50 percent less than it was, does this begin to challenge the way I'm going to behave?" he said

Mountain House, a planned community set among the fields and pastures of the Central Valley about 60 miles east of San Francisco, provides a discomfiting answer

The cutbacks by the Martinezes and their neighbors are reflected in a modest strip of about a dozen stores in nearby Tracy. Three are empty while a fourth has only a temporary tenant.
Some of those that remain say they are just hanging on

"Before summer, things were O.K. Not now," said My Phan of Hailey Nails and Spa. "Customers say they cannot afford to do their nails.
" She estimated her business had fallen by half

At Cribs, Kids and Teens, Jason Heinemann says his business is also down 50 percent. He opened the store in early 2006; last month was his worst ever.
"Grandparents are big buyers of kids' furniture, but when their 401(k)'s are dropping $10,000 and $20,000 a week, they don't come in," he said

Heinemann laid off his one employee, a contribution to an unemployment rate in San Joaquin County that has surpassed 10 percent.
He dropped his advertising in the local newspaper and luxury magazines

As Heinemann's sales sink, he is tightening his own belt. "I used to be a big spender," he said.
"We're setting a budget for Christmas"

In the window of another tenant, Wells Fargo Home Mortgage, a placard shows two happy homeowners holding a sign saying, "Someday we'll owe a lot less than we thought"

Someday, maybe, but not now. First American has been refining its figures on underwater mortgages, formally known as negative equity. The data company evaluated 42 million residential properties with mortgages. (Though Maine, Mississippi, North Dakota, South Dakota, Vermont, West Virginia and Wyoming were excluded because of insufficient data, none of those states have been central to the mortgage crisis.) A computer model was used to calculate current values, using comparable sales.
More than 10 million homes do not have mortgages

The figures rank the 20 ZIP codes that are furthest underwater.
The 95391 ZIP code, which includes all of Mountain House and some properties outside it, has the unwelcome distinction of being first in the country

Out of 1,856 mortgages in the ZIP code, First American calculates that nearly 90 percent are underwater.
Only 209 owners owe less on their mortgages than the homes are worth

The first homes in Mountain House were sold in 2003, just as the real estate boom began to go into overdrive.
Its relative proximity to San Francisco drew many who traded a longer commuting trip for a bigger place






October 06, 2008 - Experts predict that California will run out of cash by the end of the month, That prompted lawmakers to ask for a federal loan so the state can pay its expenses throughout the fiscal year, which ends June 30th


Emergency Response? Natural disasters? California is bankrupt, what are you talking about Arnold, MARTIAL LAW?

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Governor Schwarzenegger Highlights Efforts to Boost Emergency Response Capabilities
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Written by Imperial Valley News
Saturday, 04 October 2008

http://www. imperialvalleynews. com/index. php?option=com_content&a...

Sacramento, California - Governor Arnold Schwarzenegger yesterday joined with emergency responders, volunteers and private industry partners to highlight his administration’s recent actions to strengthen the state’s ability to respond to emergencies and natural disasters

At yesterday’s event in San Diego, the Governor showcased four memorandums of understanding (MOUs) with the private sector that officially make them key partners in the state’s disaster response system, and he discussed how recently signed legislation will enhance our emergency response capabilities
“With these agreements, California is better prepared than ever before for disasters, which is important especially now, at the start of Santa Ana wind season in Southern California,” Governor Schwarzenegger said. “We have the world’s best firefighters, police and first responders, but we all know government cannot do it all-making these kinds of public-private partnerships exactly what California needs.
I am so pleased that these private sector partners will be on call 24-7 for the people of California next time an emergency strikes”

Acknowledging the important role that the private sector plays in helping California respond and recover from emergencies, the Governor in 2006 issued Executive Order S-04-06, which called on the Governor’s Office of Emergency Services (OES) to make the private sector part of the state’s disaster response system

As part of its implementation, OES has been actively forming partnerships with private industry.
To date, OES has signed MOUs with the following private sector partners: Business Executives for National Security, the California Grocer’s Association, the California Utilities Emergency Association and Wal-Mart Stores, Inc

These MOUs will allow for more targeted and efficient delivery of goods and services by formalizing 24-hour contacts with the private sector. Just like we have 24-hour access to our governmental partners, the state now has well-established personal relationships with emergency management professionals in the private sector that we can call on 365 days per year. These partners will also be allowed into the State Operations Center during a disaster to staff a “Business Operations Center,” which is currently being established by OES.
Having the private sector side-by-side with state and federal emergency management personnel will expedite response activities and maximize resources

Examples of how these MOUs will benefit Californians include:

* Restoring power - the California Utilities Emergency Association coordinates the repair of power, water and other utilities via its affiliate businesses, which is critical during an emergency to restoring a community back to normal

* Providing food and water - the California Grocer’s Association can access their network of members to provide food, water and other provisions to emergency responders and evacuation centers

* Access to supplies - Wal-Mart has access to goods and supplies throughout the country and has a sophisticated logistics system to ensure that necessary supplies get to where they are needed in the shortest time-frame possible

* Access to emergency professionals - the Business Executives for National Security have a host of professional emergency managers that can aid in immediate response activities and long-term recovery efforts

As part of the Governor’s efforts to streamline the state’s emergency response capabilities, he recently signed AB 38 by Assemblymember Pedro Nava (D-Santa Barbara), which will combine OES and the Governor’s Office of Homeland Security (OHS) into a new cabinet-level California Emergency Management Agency (Cal EMA).
The bill gives the merged agency the responsibility of overseeing and coordinating emergency preparedness, response, recovery and homeland security activities in the state

Additionally, the Governor signed the following legislation this year to strengthen California’s emergency response and firefighting capabilities:

* AB 2327 by Assemblymember Anna Caballero (D-Salinas) requires entities that provide assistance during an emergency or disaster to strive to ensure that all victims receive the assistance they need and for which they are eligible

* AB 2796 by Assemblymember Nava authorizes OES to establish a statewide registry of private businesses and nonprofit organizations that are interested in donating services, goods, labor, equipment, resources or other facilities in times of emergency.
These efforts will be a valuable complement to OES’ ongoing partnerships with the private sector

* SB 1595 by Senator Kehoe (D-San Diego) updates existing fuel management laws by amending defensible space requirements that separate structures from surrounding vegetation and other potential wildfire fuels

* AB 2859 by Assemblymember Ted Gaines (R-Roseville) expands the authority for the California Department of Forestry and Fire Protection (CAL FIRE) to thin green trees and other vegetation to promote healthy forests in areas with disease or insect infestations

Read The Rest HERE



Arnold announces layoff of 22000 state workers July 31, 2008


California Gov. Arnold Schwarzenegger talks about the tentative budget agreement with the legislature during a news conference at the Capitol in Sacramento, Calif., on Friday, Sept.
19, 2008 - According to The Los Angeles Times, California’s Governor Arnold Schwarzenegger says California may need an emergency loan of up to $7 billion from the federal government

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Schwarzenegger to US : State may need $7-billion loan
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In a letter obtained by The Times, the governor warns that tight credit has dried up funds California routinely relies on and it may have to seek emergency aid within weeks

By Marc Lifsher and Evan Halper, Los Angeles Times Staff Writers
October 3, 2008

http://www. latimes. com/news/local/la-fi-calif3-2008oct03,0,965663...

Schwarzenegger letter to Paulson link:
http://www. latimes. com/media/acrobat/2008-10/42718750. pdf

SACRAMENTO -- California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M.
Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks

The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent

The state of California is the biggest of several governments nationwide that are being locked out of the bond market by the global credit crunch.
If the state is unable to access the cash, administration officials say, payments to schools and other government entities could quickly be suspended and state employees could be laid off

Plans by several state and local governments to borrow in recent days have been upended by the credit freeze.
New Mexico was forced to put off a $500-million bond sale, Massachusetts had to pull the plug halfway into a $400-million offering, and Maine is considering canceling road projects that were to be funded with bonds

California finance experts say they know of no time in recent history when the state has sought an emergency loan of this magnitude from the federal government.
The only other such rescue was in 1975, they said, when the federal government lent New York City money to avoid bankruptcy


"Absent a clear resolution to this financial crisis," Schwarzenegger wrote in a letter Thursday evening e-mailed to Paulson, "California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing"

The letter, obtained by The Times, came on the eve of a vote by the House of Representatives on a $700-billion rescue package, but it was too soon to know how the package would affect the nation's paralyzed credit markets.
The Senate approved the so-called rescue bill Wednesday night

A top Schwarzenegger aide followed up the letter with a call to the Treasury secretary Thursday night.
Treasury Department officials could not be reached for comment

It's customary for California to borrow billions of dollars at the start of the fiscal year to fill its coffers until the usual flood of sales tax receipts comes in after Christmas and income tax receipts arrive in the spring

"California is so large that our short cash-flow needs exceed the entire budget of some states," Schwarzenegger wrote

The cash needs to be in the state's bank account by Oct.
28 to be available to fund a scheduled $3-billion payment to more than 1,000 school districts

Said Matt David, Schwarzenegger's communications director: "California faces the potential of a perfect storm created by the financial crisis' effect on liquidity, lower-than-anticipated revenues currently coming into the state, and our late budget.
The governor is taking steps to prepare for this scenario to ensure that the state can make critical payments"

But those payments won't be forthcoming if the state can't do routine borrowing.
For now, "the window is shut, and if it stays shut, we are in deep trouble," said an administration official, who asked not to be identified, citing the sensitive talks with Washington

Quick passage of the rescue bill by the House of Representatives today and a signature by President Bush could inject more money into the international financial system and allow California to borrow at a reasonable interest rate, the official said

But there are no guarantees that the economic recovery plan before Congress will succeed, said California Treasurer Bill Lockyer, who has been working with Schwarzenegger to keep the state solvent

Asking the federal government for a loan "is one option on the table," said Tom Dresslar, a spokesman for Lockyer. The treasurer, he added, is working with outside financial advisors on a possible emergency plan to sell short-term debt notes to the U.S. government.
Lockyer believes that such a plan is both feasible and legal, Dresslar said

"I don't think we have ever gone to the feds," said Fred Silva, senior fiscal policy advisor with California Forward, a state budget think tank

Silva said the closest California came may have been in the days after the 1994 Northridge earthquake, when at the request of the state, Washington sped up payment of federal funds that the state was owed

State officials now fear they face a potential cash crisis worse than California confronted in 2003, in the final days of Schwarzenegger's predecessor, Gov.
Gray Davis

At that time, the precipitous decline of state revenue in the middle of a budget year forced officials to pay a syndicate of banks a premium of hundreds of millions of dollars for what amounted to an expensive "payday loan"

Even that option, administration officials say, would not be available during the current credit drought.
They say if Congress does not approve a bailout plan -- and maybe even if it does -- there will be no lenders available to provide the state with the money it needs, regardless of the premium the state is willing to pay

"We need to go as wide as possible to try to find buyers at reasonable rates," said Robert Fayer, an attorney advising the state on its planned $7-billion bond sale

"Whether it could ultimately be the federal government, I have no idea.
It is a fairly radical concept"

marc.lifsher@latimes.com

evan.halper@latimes.com


California Governor Arnold Schwarzenegger sets down the pen after signing an executive order eliminating 22,000 part-time and temporary positions and ordering 200,000 state workers receive the federal minimum wage


Exterminators of Americans - Warren Buffett (purchased FEMA railroads), Arnold Schwarzenegger, Lord Jacob Rothschild (owns all Americans)


June 05, 2008 - Gov Arnold Schwarzenegger declared a statewide droughtand order the state Department of Water Resources to quickly transfer water
to areas with the most severe water shortages

..
Southern California water crisis
Cargado por Channel_Zero..

The Los Angeles Aqueduct, carries water from the snowcapped Sierra Nevada Mountains, which hold less snow than normal, to major urban areas of Southern California

Associated Press May 16, 2008 - Using treated wastewater for drinki...

New York Times - May 16, 2008 - Los Angeles Eyes Sewage as a Source...



California water conservation TV spot – Oct 2008

California Governor Arnold Schwarzenegger takes part in a conversation on leadership and the economy at The Women's Conference 2008 in Long Beach, California October 22, 2008


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California to cut water deliveries to cities, farms
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Associated Press
Samantha Young
Thu Oct 30, 2008

http://news. yahoo. com/s/ap/20081031/ap_on_re_us/california_water

SACRAMENTO, Calif.
– California said Thursday that it plans to cut water deliveries to their second-lowest level ever next year, raising the prospect of rationing for cities and less planting by farmers

The Department of Water Resources projects that it will deliver just 15 percent of the amount that local water agencies throughout California request every year

Since the first State Water Project deliveries were made in 1962, the only time less water was promised was in 1993, but heavy precipitation that year ultimately allowed agencies to receive their full requests

The reservoirs that are most crucial to the state's water delivery system are at their lowest levels since 1977, after two years of dry weather and court-ordered restrictions on water pumping out of the Sacramento-San Joaquin Delta.
This year, water agencies received just 35 percent of the water they requested

Farmers in the Central Valley say they'll be forced to fallow fields, while cities from the San Francisco Bay area to San Diego might have to require residents to ration water

Mike Young, a fourth-generation farmer in Kern County, called the projections disastrous

"For the amount of acres we've got, we're not going to have enough water to farm," he said

Young said he will be forced to fallow a fifth of his 5,000 acres.
Water will go to his permanent crops — pistachio, almond and cherry trees — but most of his tomatoes and alfalfa will not get planted

"We've got to start spending money on next year's crop now," Young said

Jim Beck, general manager of the Kern County Water Agency, noted that fewer plantings would yield fewer crops and a decrease in the number of farm hands hired

"We're seeing a phenomenon in the Central Valley where growers who have been in the business of agriculture are laying off workers who have been with them for 20 or 30 years because they don't have the water," Beck said. "It's one thing to see brown lawns and shorter showers in urban areas.
The real impact in the Central Valley is people are having to find new jobs"

In Southern California, the Metropolitan Water District — the agency that supplies water to about half the state's population — has depleted more than a third of its water reserves.
The agency's general manager, Jeff Kightlinger, said Californians must immediately reduce their water use to stretch what little water is available

"We are preparing for the very real possibility of water shortages and rationing throughout the region in 2009," Kightlinger said, adding that his board will consider rationing during its meeting next month

The State Water Project delivers water to more than 25 million residents and 750,000 acres of farmland

In 2006, water agencies received their full allotment, in part because of heavy rains and a thick Sierra snow pack that year.
But last year, a federal court limited water pumping out of the delta to protect the threatened delta smelt

Even with Thursday's dire projection, a wet and snowy winter could mean that cities and farms ultimately get more water, said Ted Thomas, a spokesman for the state water department.
But that wouldn't affect the court order

"We are anticipating drastically reduced water supplies, regardless of weather conditions," Laura King Moon, assistant general manager of the State Water Contractors, said in a statement

Department of Water Resources Director Lester Snow said the bleak outlook underscores the governor's call to retool California's massive water storage and delivery system

Gov. Arnold Schwarzenegger favors building more dams and designing a new way to funnel water through or around the environmentally fragile delta.
The proposals have failed to gain traction in the Legislature

Schwarzenegger this year called on water agencies to voluntarily cut water use 20 percent by 2020.
He stopped short of issuing a mandatory conservation order, a strategy yet to used by the state, Snow said

"The governor has sounded the wake-up call, and the clock is ticking," Snow said in a statement






November 08, 2008 – ShakeOut 2008 World’s Biggest Earthquake Drill


SanDimas. net - 2008 ShakeOut 7.
8 Earthquake Simulation

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