Fox News
Expand
Browse All Video
Watch Live

You're watching...

California digging deep debt hole

Details

  • Description

    Gov. Brown wants budget cuts, tax hikes to fix $16B deficit

  • Duration 5:40
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Reagan left office -- one.

In dollar deficit and been transformed into a 554.

Million dollar surplus.

And while -- the taxpayers hundreds of millions of dollars he improved -- California.

A look back at president Reagan's time as governor of the state of California.

When that state was dealing with tough economic times.

And now it is dealing with an even bigger crisis.

In what he is calling a day of reckoning for California.

And America.

Governor Jerry Brown details that State's massive budget problem.

In a web address watch.

Was still recovering from the worst recession since the 1930s.

Tax receipts are -- lower than expected.

And the federal government and the courts have blocked us from making billions in necessary budget reductions.

The result is who are now facing a sixteen billion dollar hole not the nine billion we thought in January.

Without -- -- it's sixteen billion.

In the red that's status.

Despite the grim news the governor is still standing by a bullet train project that many are calling a costly boondoggle.

Projected to cost California taxpayers two billion dollars a year.

What I.

Michael Reagan is chairman of the banking group and with me now Michael you know it if people are looking -- at this is just an example of what happens when you live beyond your means and.

Bright took a -- asked when you're sixteen billion dollars in debt still saying.

I want the pretty train it goes so fast.

Although it go to 130 miles that's hit the Bakersfield.

Apart from thirty miles of what do what it does.

-- -- is gonna cost the people of California three and a half million dollar today.

Every day from -- day.

Until 2017.

And it really isn't done in 2070 in the federal government in shots off the money.

They were going to be giving the state of California for -- -- the president was here last week at that fifteen million dollar fund raiser Clooney's house.

Was talking about his support for a bullet train literally.

That goes to know.

What.

Happening in the state of California because we talked about -- -- your dad and how he inherited a financial crisis in came in and help clean it up.

It doesn't seem like the state has learned a lot from the lessons of yesteryear.

As there's a report today in the Wall Street Journal talking about the mass exodus of businesses.

And even citizens local residents who live in California for saying -- now.

Well actually -- -- or playing the other day and end.

A woman who's flying home to California from Texas she worked at -- that's why do you work -- -- she took.

The company moved to Texas and took their workforce what that that's what happened.

The tax base has left the state of California has gone to taxes have gone do you -- gone to Arizona.

Gone to Washington dog org is gone other places that are tax friendly.

And business friendly.

The -- California have over five businesses of the month leaving the state of California.

Apple gone they're all leaving the state FaceBook and -- -- country.

It has gotten outrageous in this state and when you have a -- has gone totally Green started by the way by Schwarzenegger with AB 32.

Which is turning everything Green in this state.

Corporations cannot afford to do business about two weeks ago the governor signed the executive order requiring.

Every state building by 202025.

To be -- -- efficient and supplied their own energy needs wind or solar.

Like that's gonna really happen well that's not gonna happen because people won't be here for.

You know what's interesting is I think a lot of folks who want to see more government help.

Whether it's a state or a country for that matter believe that that is the humane thing to do.

And what's what's ironic about what's happening in California right now is it seems like it is those very people who needed to government help to Begin with who we're about to get.

Hurt the most it and thanks to the cutbacks the Jerry Brown is looking at a mean according to a Bloomberg News report.

They're talking about deep deep cuts that threaten safety nets for the pour the elderly the disabled.

-- -- -- Did the for the Ponzi scheme and and to three card Monte is being played here -- example about.

Four weeks ago the state assembly knowing that we wouldn't vote to raise our taxes to pay for low income housing.

Took a billion dollars away from education.

Moved over to low income housing why.

Because they think will vote to raise our own taxes to pay for education so they moved -- a billion dollars very little what you short -- needed.

The Education Department to get what the world they -- we're spending 151000.

Dollars.

A student.

151000 dollars a student in the state of California -- we have gone from first to worst in the state of California as far as education.

This with a complete boondoggle what is going on and it's controlled by the unions.

And by the Democrat party we have one party rule and the state of California you know I wrote an article about two weeks ago and the article ended this way.

The Democrats in this state have gone nuts and the Republicans have lost theirs.

What would his lead at that has -- -- -- I should put up that Wall Street Journal article -- -- was dated Tuesday April report.

OK Michael thank you.

Load More