California Facing $16 Billion Shortfall

California is a foreshadowing of what is coming for the rest of us.  They thought they were facing a $9 billion problem and they just announced it's far worse than what they thought.

The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.

"This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year," Brown said in an online video. "But we can't fill this hole with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety."

The governor is expected to propose a contingency plan with a list of unpopular cuts that would kick in automatically if voters reject tax hikes this fall. In January, he said they would result in a K-12 school year shortened by up to three weeks, higher college tuition fees and reduced funding for courts.

Here;  http://news.yahoo.com/california-facing-higher-16-billion-shortfall-213905732--finance.html

Remember how we just heard that the police in Greece were not showing up when called?  Now understand the same thing is going to start happening in California when public safety is cut.  Also remember that California had to release about 40% of its felons already due to overcrowding and budget constraints.

How much incentive will the police have to arrest anyone when their pay is being cut, their pensions are disappearing and the criminals they arrest are going to be released anyway?