freedomCM - 05 November 2009 11:32 AM

Geotpf - 05 November 2009 08:42 AM

Well, top rate universities don’t come for free.  Californians don’t want higher taxes to pay for them.  Texas has the advantage of lots of oil, so they can keep their taxes on other things low.  California can’t do that.

huh?  texas *taxes* oil extraction to pay for higher education.  In california, just this summer,  the republicans killed a bill to start taxing oil extraction.

Exactly my point.  Texas has lots of oil to tax, so they can tax other things less for the same amount of revenue.  California doesn’t have (much) oil to tax, so they have to tax other things more, or get less stuff (like fewer universities).

freedomCM - 05 November 2009 11:32 AM

Geotpf - 05 November 2009 08:42 AM

Well, top rate universities don’t come for free.  Californians don’t want higher taxes to pay for them.  Texas has the advantage of lots of oil, so they can keep their taxes on other things low.  California can’t do that.

huh?  texas *taxes* oil extraction to pay for higher education.  In california, just this summer,  the republicans killed a bill to start taxing oil extraction.

There is a lot of oil around California.

Plenty of blame to go around.  IIRC, the repubs squashed a bill that would tax oil extraction, but not allow additional drilling.  On the other hand the Dems squashed a bill that would allow an existing oil platform to be used to increase production, and produce $1.8 Billion in revenue to the state’s coffers.  Repubs supported that one, but Dems squash project.

A pox on both their houses.

I noticed another difference while putting up some pictures today.  In Texas, people use simple screws and nails to hang things.  No complex mountings or quake gum.  They assume pictures will stay put.

MalibuRenter - 08 November 2009 05:26 PM

I noticed another difference while putting up some pictures today.  In Texas, people use simple screws and nails to hand things.  No complex mountings or quake gum.  They assume pictures will stay put.

Earthquake hazard is very low in Texas.  This map shows the highest hazard areas in the U.S., primarily along the west coast, but also a spot in southeast Missouri, where some of the largest earthquakes in North America were recorded in 1812.  So you trade California’s earthquake hazard for the tornado hazard in Texas.

The quake hazard near St Louis is horrible.  Seldom, but the worst in recorded history in the US.  The quakes in the early 1800s rang church bells in Boston.

I ran across an interesting report yesterday.  http://www.rockinst.org/pdf/government_finance/state_revenue_report/2009-10-15-SRR_77.pdf

The Rockefeller Institute has a regular series on state tax collections.  It may come as shock to many Californians that there are many other states whose revenue has declined more, but who were able to actually fix their budgets and maintain their credit ratings. 

CA has known about its structural deficit for a long time, and about the volatility of its revenue sources.  However, a dozen states have had bigger percent declines in state revenues: Alaska, Florida, Arizona, South Carolina, Georgia, Virginia, Utah, Idaho, North Carolina, Nevada, Delaware.  So, how much press have you seen about SC, VA, NC, and DE being unable to make cuts or agree on new taxes?

Yep, that’s what I thought.

MalibuRenter - 10 November 2009 04:38 AM

I ran across an interesting report yesterday.  http://www.rockinst.org/pdf/government_finance/state_revenue_report/2009-10-15-SRR_77.pdf

The Rockefeller Institute has a regular series on state tax collections.  It may come as shock to many Californians that there are many other states whose revenue has declined more, but who were able to actually fix their budgets and maintain their credit ratings. 

CA has known about its structural deficit for a long time, and about the volatility of its revenue sources.  However, a dozen states have had bigger percent declines in state revenues: Alaska, Florida, Arizona, South Carolina, Georgia, Virginia, Utah, Idaho, North Carolina, Nevada, Delaware.  So, how much press have you seen about SC, VA, NC, and DE being unable to make cuts or agree on new taxes?

Yep, that’s what I thought.

Well, we have prop 13.  Without prop 13, or even with a more limited version (primary residence only with an income limit, excluding commercial, industrial, rental properties, and second homes), we’d be fine.  Since that’s not possible, and there’s no big oil or gambling revenues to tax, California is screwed.

If you live in Dallas, you will note a large number of police officers.  They are out patrolling our neighborhood in the evening.  Actual police officers in uniform are in many stores.  These aren’t minimum wage “security” that you often see in other cities.

I haven’t been able to figure out the exact story, but it appears that the local police can work in their off hours in full uniform.  In terms of actual security, it’s like having a larger police force.  I think it also must result in far fewer problem in the stores where they are working.  Nothing like having the witness be a police officer who can just haul you off. 

I am guessing this is a good arrangement for the officers.  They would be able to work more hours if they wanted, or not.

Posted this on the main blog, but thought it might be interesting here.

I’m buying a condo in Dallas next week (for investment).  20% off of original list, 5% off of most recent list price, 1/3 off of peak.  Distressed seller, mildly below recent sale comps.

Aftertax cap rate around 5%.  No problem getting it to cashflow.  My guess is a slight drop in resale value over the next two years.  Maybe 10-15%.  Nothing like the (additional) implosion I’m expecting in CA.

By the way, anyone notice anything changing for you personally due to the State’s budget crisis? 

I saw a rather scary map about CA unemployment today, http://www.sacbee.com/1232/rich_media/1698037.html

Congratulations, Malibu.

Great link - linkified.

What is scarier about CA is that fact that the stats don’t show “underemployed” numbers.