California begins borrowing to cover big shortfall

Sacramento Bee ^ | March 19, 2002 | Daniwl Weintraub

[snopercod]

Gov. Gray Davis and Treasurer Phil Angelides have not always been on the best of terms. But Davis should thank his fellow Democrat for the treasurer's slick reshuffling of the state's debt last week. The maneuver will save the state more than $1 billion over the next two years, making the governor's job of balancing the budget that much easier.

[snopercod]

The California sun is becoming dim due to all the chickens returning to the Governor's Mansion.

[snopercod]

Davis whips out his Platinum Titanium GoldTarnished Brass Credit Card...

[Saundra Duffy]

Saving California one billion dollars is just a drop in the bucket. Davis has pissed away the entire surplus and then some. Thank Goodness for Bill Simon who is poised to kick Davis' rearend right out of office come November. Go, Simon! For victory & freedom!!!

[goldstategop]

This game of musical state budget chairs is good news for Gray Davis' re-election bid. Unfortunately the bad news is its not so good for the state's taxpayers. Davis won't worry about it since its going to be for someone else to deal with regardless of what happens in November. If its still Davis, it'll be his successor in 2006. Should Bill Simon be the next state's Governor, he'll have to straighten out the mess Davis left behind. So much for Davis' touted experience!

[Dog Gone]

Gov. Gray Davis and Treasurer Phil Angelides have not always been on the best of terms.

Maybe Weintraub knows something that I don't, but since 1999, these two losers have been in lockstep with each other. They might as well be lovers.

[randita]

ndx

[Ernest_at_the_Beach]

Thanks for indexing this.

I'll just add the search banner.

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[kidd]

So, the tax bill during this election year will be less then it would have been otherwise. And when Simon wins, he'll have this liability hanging over his head for his entire term. This is a transparent political move, not a financial one.

[goldstategop]

Of course. This is all about securing Davis' political future. The future of California be damned.

[snopercod]

musical state budget chairs

Good analogy, but you must realize that the game is rigged from the start. The taxpayers are always the ones left standing up when the music stops.

[Robert357]

Speaking of tarnished brass credit cards... ....no amount of creative financing will allow the state to sustain that kind of imbalance for very long.

I felt that the author pulled his punches at the end of the article. What would have been important to point out is that the bond rating agencies will see right through the slight of hand and accounting changes. The true test for the Governor and the Legislature will be to convince the bond rating agencies that this is a temporary change and that the state will focus on growing its economy to improve tax revenues. Oh, thats right Davis and the Legislature would prefer to confiscate excess profits, take by eminent domain businesses like power plants that refuse to operate at a loss, and try to get out of contracts (like the Davis power contracts) that were critical to the survival of the state. I think waiting and watching the rating agencies will be real interesting as the debt in California mounts up.