May 15, 2009
For Sale: The Golden State
I really wanted to include a little graphic showing the state of California with a FOR SALE sign planted in it right about at Sacramento. Well, just use your imagination.
California's Governor Schwarzenegger has proposed selling a number of state landmarks (state ownership of which is in some doubt) to raise cash and balance the state budget. One-time proceeds are estimated at $1 billion. The budget shortfall is $15.4 billion, just for the next fiscal year. Obviously state officials need more stuff to put in their garage sale. Hmm, I wonder what California has that someone might be willing to pay cash for (other than federal bailout dollars, that is.) Gee, that's a tough one!
According to this handy interactive graphic the total government lease royalty revenue that would result from lifting current oil and gas production moratoria is $1695 billion and of that amount, $1386 billion of it comes from the outer continental shelf (Atlantic, Pacific and Gulf regions combined.) A summary report here provides numerous tables showing the breakdown by area but none were clear enough for me to cite specifically. Let it suffice to say the California budget shortfall, at $15.4 billion, is a bit over 1 percent of the possible OCS government windfall. If the Governator would simply work toward responsible development of his state's natural resources he could balance its budget overnight, and for decades to come.
As an added bonus, the productive half of America might even throw in legalization of pot!
Deleterious Anthropogenic Warming of the Globe Oil and Energy We're from the government, and here to help. Posted by JohnGalt at May 15, 2009 10:46 AM
I'm just happy the Governator is listening to Reason TV as they point out some of the goodies that are available.
Great point on the revenues from energy production. If we could duct tape Senators Boxer and Feinstein in a box* for a couple of days and override the bans, would the Golden State's production be viable at current prices?
*ThreeSources does not recommend or condone violent behavior directed at legitimately elected officials. This was merely a dramatic device to suggest possible passage of legislation that the current Senatorial representation of California has long opposed.
Posted by: jk at May 15, 2009 11:42 AMCalifornia going bankrupt while refusing to pump all that nice, shiny, revenue-producing oil isn't far removed from half a billion people starving in India while porterhouses and top sirloins on four legs walk around unmolested and uneaten on their city streets.
THERE'S a worthy run-on sentence to make a well-deserved point. The picturesque tone of voice is just a fringe benefit.
All that being said, I must once again apologize to the whole nation for my state. Let's just face it: we're heap plenty stupid. We gave you Feinstein, Boxer, Schwarzenegger, Waters, and come next Tuesday, we'll see whether we're still stupid.
I'm sorry. I'm really, really sorry.
Posted by: Keith at May 15, 2009 4:32 PMA feller in the 2nd Congressional Colorado district is not going to cast any stones (not without a permit, Kieth).
The Reason video reminded me the hope I had for Ahnold. All humor of the video aside, it underscores just how bankrupt (philosophically) the system is. Watch those union folk -- those teachers "Ain't got none attention of giving nothing up!"
Schwarzenegger was a rare chance: he had the star power to get elected as an individualist in a collectivist-leaning state and he had toughness to stand up to the opposition. The California Public Union Sector trained him like a puppy. Is there another one left, Yoda?
Posted by: jk at May 15, 2009 5:02 PMI see today evidence that the "sell Cahl-ee-fohrn-ya's state landmarks" proposal was little more than a campaign stunt. It was aimed at bolstering support for tomorrow's tax increase ballot measures (which Keith alluded to in his comment.) The half-dozen or so initiatives would raise taxes to collect, as I understand it, an additional $6 billion per year for 3 years from CA taxpayers (read: those "white people" who gathered on Capitol steps nationwide last month). If they fail, as the polls suggest most will, the supposed result will be "deep spending cuts."
Good NED, can we get some of those ballot measures in OUR state too??
Posted by: johngalt at May 18, 2009 1:36 PMjohngalt: for more on tomorrow's wacky ballot measures in California, see here:
http://tinyurl.com/ooehz7
I did an update yesterday pointing my readers back here, and we have a lively conversation going among my readers in which you're always welcome to participate. Heaven knows a good lesson in free-market economics and the proper role of government is sorely needed by Californians, especially our elected overlords...
Posted by: Keith at May 18, 2009 1:55 PM | What do you think? [5]