[Avoiding_Sulla]

Thanks for posting this.

[bonesmccoy]

California should declare bankruptcy. the Dem's did it.

[familyofman]

"A 13.4% reduction would mean cutting $5.2 billion from this year's budget before Jan. 1 and setting next year's budget at $66.6 billion. That's a big cut -- and it means giving up billions of dollars of programmed spending increases next year."
I didn't see any specific cuts mentioned. Where will the $5.2bil in cuts come from? What programs, etc will be cut?
Is this the only solution to the budget woes of Calif, and how much support do these recommendations have in the CA legislature?

[Cicero]

He puts it very well. Not blaming Arnie but blaming Gray Davis, and saying that it's a choice and an opportunity.

What Arnie decided right now will be crucial. He needs more than a 1 or 2 billion dollar cut; he needs major surgery immediately.

Machiavelli said that when you need to something very unpopular, don't do it in dribs and drabs and stretch it out over a long time. Do it early and do it completely. Then the shock will be over and people will be relieved as things gradually get better.

[liberallarry]

If only it were as simple as McClintock describes.

A 15% drop in family income can almost always be dealt with by belt-tightening. A 50% drop is a catastrophe...and that's what will happen to some people as the state cuts spending.

Here's an example.
The Governor is proposing a 10% cut in Medical, on top of a 5% cut that was recently implemented. He also proposes a small drop in wage assistance for long-term care nurses.
Between 20 and 50 of California's rural hospitals are in grave financial danger. Some will be pushed over the edge and forced to close. That means the loss of a signicant number of jobs and income to the hospital's town and a significant drop in property values. So some businesses may be forced to close and some people may default on their mortgages...and some patients may have nowhere to go. The governor and the Legislature will try to prevent this kind of collateral damage...but it will occur anyway.

It's the multiplier effect working against us.

[RKV]

"California's current budget deficit is caused by two actions Gray Davis took last year to paper over his mismanagement: He illegally tripled the car tax and he attempted to borrow $12.6 billion unconstitutionally."
Actually the cause is that expenditures outpaced revenues. That said, I don't disagree with the solution. Cut spending now.

[GrandMoM]

BUMP

[kellynla]

Thanks for posting! Now would someone please find the scissors for Arnold! Make the cuts now across the board which would still be an increase over what the state was spending only four years ago! NO MORE BONDS, ARNOLD!

[nickcarraway]

ping

[PeoplesRep_of_LA]

But repairing this problem requires that local governments be reimbursed for their losses. In addition, the courts have already invalidated $1.9 billion of Mr. Davis' borrowing plan, further deepening the deficit. According to the Legislative Analyst's Office, these developments mean that the state will end up spending $76.9 billion this year, with only $74.2 billion in revenue.

One point nine, one point nine, hmmmmmm that sounds so familiar. Where I have I heard that before?... Oh yeah, this fiscally conservative-bone thrown that I was pinged to by one of the uber-Userful Idiots; http://www.freerepublic.com/focus/f-news/1028327/posts

If CA can get it down to $74.2, then it won't have any immediate problems, and the Fat Cats will still get all their graft, how slick of the Governor. These are the kinds of faux "balanced budgets" that Clinton popularized in the 90's, which left Bush a recession.

[k2blader]

Bump.

[Mr. Jeeves]

Arnold has to go after the education budget. There is at least 10 billion there that can be cut without affecting the anachronistic classroom instruction model that everyone is so enamored with (though the effect on the Democrat fund-raising/patronage machine is likely to be considerable). He needs to attaack the educrats now, while he has the public on his side, and get any mandatory school spending laws repealed.

[StoneColdGOP]

Right on, Tom!

[Publius6961]

Gee. It's finally that obvious?
Somebody figured out that current uncontrolled expenses plus paying interest of past deficits will bankrupy any family or state.
It's just a matter of when.

How many doctorates does it take to figure that out?

[Scenic Sounds]

LOL. While I was reading this article, I got a call from Arne (actually Arne on tape) reminding me of a big rally to be held downtown tomorrow for his recovery program. So, Arne's working at this stuff. ;-)

[Amerigomag]

I will come to the defense of liberallarry because his example, while applied broadly, is objectionable, but examined carefully is a valid point.

Liberallarry hails from an area the defies the California norms. It is actually populated by nearly 100% Californians and is far removed (several hours) from a major population center. Loss of medical facilities in this region due to needed budget cuts would constitute a public arrogance.

Unfortunately liberallarry's point wouldn't scale because of the uniuqeness of the location but none the less his point is valid as it applies to his region of California. A seemingly small cut is public largess could severely cripple medical care east of the Sierra Nevedas.

[ClintonBeGone]

Gov. Schwarzenegger rescinded the illegal tax increase on his first day in office. It's important to note the word "illegal." Not one of the conditions required to raise the car tax had been met, and it was only a matter of time before the courts ordered the money to be returned to taxpayers with interest.

This guy still thinks he's in a campaign. He ought to shut up and start voting to help the new Governor. His ego's bigger than that punkin I just tossed off my doorstep.