You earn it, they take it.

http://www.latimes.com/business/la-fi-s ... 8140.story

With an IOU the bank won't accept.

It's a race between New York and California. Who can force the most residents out of their homes?

California had 36.8 million people in 2008 while New York had 19.5 million.

California lost 3.8% of its population in 8 years while New York lost a whopping 8%.

The great exodus out of California is only being hampered by the heavy mortgages that anchor people in jobless cities.

It'll be interesting to see what happens if they are out of money again next year and resort to printing more IOU's. How many more tricks are there that they can use? How long can this system of government work before they run out of options?

The effect of this will be that families will lose money in the long run. If the government is taking much needed money (for rent, groceries, gas, etc.) out of their paycheck, then many people will resort to putting more of those bills on credit cards. That will result in interest-bearing loans (at awfully high rates) while they'll get back the money a year later at face value. I don't think the government is thinking this through.

Also, has anyone here in CA had to deal with the IOU's? Did they work out as they said or was it difficult/impossible to find someone to take them?

Interesting chart, I would wager that the only reason LA lost so many people is Katrina dislocation. Many of those forced to flee New Orleans discovered a happier life in the places they re-settled and did not choose to return.

The warrants can now be cashed but some banks still won't take them. My bank (Chase) won't take them so I've mailed it back to the state to be replaced with a check that includes 3.4% interest on the money.

The trouble with population decline is that states rarely, if ever, cut their staff levels.

So if a state starts losing large numbers of taxpayers, the remaining taxpayers must shoulder the burden of a bloated state bureaucracy. Also, state debts don't decline proportionate with population loss and the upkeep on state infrastructure doesn't disappear just because the people who used it disappear. This situation inevitably leads to higher taxes or cuts in services that taxpayers actually like, leading more people to leave the state...and a vicious cycle begins.

The tax withholding shenanigans of the California legislature will only work for so long. Eventually they have to enact real tax and spending reform.

California has some of the most innovative businesses in the world but they won't stick around if the workforce leaves and the quality of life implodes.

This sort of thing fills me with rage. There is nothing we have that the government(s) cant take from us. California is shaking down is citizens for loose change. With each shake the people loose a little freedom, a little bit of dignity, a little more autonomy and control of their own destiny. The government of California is not looking out for its people, it is looking out for itself. A government that serves itself above the needs of the people is no longer a government of free people. This is a move towards subjugation and oppression. It will continue, a little shake at a time, until the people wake up one day to realize they have lost all their freedoms, they have no control over their lives, and it is too late to turn around or escape.

Its just a few bucks, and the state is in a crunch, so the action proceeds. If California can do it, how long before the next state? Then another and another after that? If the states can do it, the IRS can surely do it, after all, its not a tax, and the people get their money back, and nobody is going to suffer from just a couple of bucks a week, they spend more than that on fast food.

After a few months the people won't even miss it. They'll adjust. And they'll get that big fat rebate check or voucher when they file their tax forms. Then we can take another couple of bucks a week and really do some government debt butt whooping. So can the other states. So can the federal government. While we are at it, a few cents more for SSI and medicare would sure go a long ways to making ends meet. We can start the SSI increase on the first of this year, medicaid right after they get their tax voucher. And we can pick up a few cents per week from the employer too. To be realistic, a couple of bucks from the employer would be more like it.

We'll be putting out bigger rebates when they file their forms, so a plan will be needed to delay that surge in cash layouts. Anyone who gets a rebate over a certain threshold will get multiple payments rather than one lump sum. They will get their money, no problem at all, but with this economic downturn fiscal situation we all have to chip in and do our part. You get a portion of your refund in a timely manner, a couple of months, then the rest split over over a few payments, guaranteed to be paid by the end of the year. The fiscal year, I mean. Within 12 months, guaranteed. This gives us the time we need to make changes to bring this budget back in line with revenue and with no significant reduction or closure of government services.

I can see it as clearly as if its already been done.

Time for California workers to hit up the payroll departments and fill out new W-4's first thing tomorrow morning.

Note the time period covered by this chart: 2000 - 2008. What is doesn't show is that some of the "gainer" states have now begun to lose population. Florida is an example. People are moving out of FL because there are no jobs, property insurance is way high, and property taxes are through the roof in many cases. Also, I wouldn't pack my bags for Georgia or South Carolina just yet. Both states are well above the national average for unemployment (both over 10% last I checked). Georgia is predicted to take a long time to recover from this slump. We had all of our eggs in the residential and commercial real estate market/ construction basket and now we are left with nothing at all. If I could take the cold, I would head for Minnesota or New Hampshire.

Regarding the California situation, that is nuts, plain and simple. Taking more money without officially raising taxes is theft, isn't it? Yikes. It's time to jump ship for sure.