L.A. County threatens to withhold revenue from state

[ColbertWatcher]

From the Los Angeles Times
L.A. County threatens to withhold revenue from state
Citing a $106-million budget deficit, supervisors threaten to retain funds that should go to Sacramento in order to pay for local health and social services.
By Molly Hennessy-Fiske
February 4, 2009

"We're declaring our own Boston Tea Party," Supervisor Gloria Molina said during Tuesday's board meeting, adding that refusing to turn over the money to state lawmakers "will make their pain more acute."

But it may not be legal, or, for that matter, practical.

"It's a delicious idea," said Supervisor Zev Yaroslavsky. "It may be deliciously illegal, but I think the state's action may also be illegal."

As of Sunday, the state controller had delayed more than $100 million in health and human services payments to the county for at least a month. Such delays are also affecting the rest of the state's 57 counties. Locally, county leaders have so far opted to cover the delayed state payments with reserves.

(...)

Supervisors gave William T Fujioka, the county's chief executive, as well as the county counsel and the auditor controller, two weeks to explore the legality of withholding money -- including state reimbursements and property and sales tax revenue -- from the state.

Much of the county's tax revenue could not be withheld for the simple reason that it is collected directly by the state -- as is the case with income and sales taxes.

Still, the county controls billions of dollars in property taxes and millions of dollars in state reimbursements, said John Naimo, assistant auditor controller.

(...)

A spokesman for Gov. Arnold Schwarzenegger warned that such a game can be played both ways. If L.A. County holds on to the state's share of taxes, said H.D. Palmer, a spokesman for the state Department of Finance, the state can withhold an equal share of the county's sales tax revenues.

"The state has the ability to compensate for any action that might be taken on the local level," Palmer said.

(more)

--Los Angeles Times

[Ian David]

1. Who's the Economic Girlie-Man NOW?? n/t

[rufus dog]

2. this is how it starts

Then states threatening to withhold from the Feds.

[Duke Newcombe]

5. Let California do this to the Feds...

Everyone will be screwn.

[ColbertWatcher]

6. Good. Maybe it will undo all the crap the feds did ...

... when they pulled that invade Iraq crap.

Of course, I'm hoping that the GOP-controlled media does their job and explain why we're all in this mess.

But, that's not likely.

[Greyhound]

9. And when the states pass it up to the feds it could undo, in practice, the whole Raygun disaster.

Don't forget that while pouring money into the parasite class through his "tax cuts", he also borrowed more than could reasonably be repaid and covered that by dumping the debt on the states.

[Poll_Blind]

7. Yep, I'm pretty concerned about where this is headed.

PB

[crimsonblue]

3. Man, can they clone Arnold and make him my governator too?

Please?

[tridim]

4. Humboldt County should do the same..

Until the Feds stop bothering them.

[EFerrari]

8. I've long been an advocate of tearing down our bridges and walling off

the south county at Hwy 280 except for a special gate for CreekDog, alittlelark and tmfun. :shrug:

[MadHound]

10. Oh boy, we get to sit and watch California unwind.

Then watch as that trainwreck dominoes into other states and the federal government, and this whole country will unwind.

[ColbertWatcher]

11. Another mess designed and implemented by the GOP.

Arnold attended the Enron energy scam meetings in 1999.

And it all went downhill from there.

[MadHound]

12. Oh it goes back beyond Arnie and Enron

Despite California's reputation for being such a "liberal" state, the reality of the matter is that it's always been a pretty conservative one, especially when it comes to taxes and such. Thirty years of driving down revenue has led to this mess, and now it's all going to implode, taking the rest of the country with it.

California is the world's eighth largest economy, and when it goes, the repercussions will take all of us out.

Next up, Florida.

[Horse with no Name]

15. Somehow I think that for ANYTHING substantive to be done

It has to affect the majority of the people.
It isn't "fair" for some to have and for some to have not.

As a member of a military family, I don't think it is fair for MY family to suffer when our loved ones are deployed while people that made the policy don't have to suffer.

It is time for everyone to suffer equally and with that, I believe humanity could arise again and kill that venomous "me me me meme" snake. It will make us a better country AND show us who our REAL enemies are (hint--they aren't each other).

[Gold Metal Flake]

14. Time to increase the pressure on the state government...

...and squeeze the Grover Norquist out of the anti-tax, starve the beast Republicans.

[Winterblues]

13. Bring back Governor Davis

Ahnold has made a HUGE mess of California....Are Californians truly this stupid?

[kestrel91316]

16. Ahnuld wants to cut funding of public health directly, and he wants

to tax veterinary medical services (not grooming and boarding, mind you, those will NOT be taxed), which will indirectly impact public health by drastically increasing the risk of zoonotic diseases.

The man has destroyed this state.

[EFerrari]

17. Remember, in 2004, he wanted to cut shelter holds to 24 hours

as well as funding for wheelchair access. I guess he figured none of the affected would get on the freeway and protest his @ss.