Ray Haynes: Schwarzenegger Learns How Democrats Negotiates

ChronWatch ^ | Dec. 18, 2003 | Ray Haynes

[FairOpinion]

Governor Schwarzenegger learned an important lesson this last week. He came to Sacramento with a desire to ''negotiate'' a ''bipartisan'' solution to our budget crisis. He honestly believed that this ''bipartisan'' solution was possible. He even proposed a ''bipartisan'' solution to the crisis. The Democrats then threw his ''bipartisan'' solution in the trash can, and told the world he ''refused to negotiate.'' Welcome to Sacramento, Governor.

Let me explain.

For each of the past three years, Democrats have spent $8 billion more than they have received in revenue. In the 2001-02 budget, this was not a problem, because the state had four years of record surpluses. That surplus was burning a hole in the pockets of the Legislative Democrats, so they spent it as fast as it would come in, but even still, in June, 2001, the state ended the year with a $6 billion surplus.

That surplus didn't last long. By July of 2002, the state had spent the entire $6 billion, plus $2 billion more. By the end of the 2002-03 budget, the state had a $10.8 billion debt. That debt was financed with a one-year loan, due in May, 2004. In addition, the state owes the state employee pension fund (Cal-PERS) $2.5 billion that it cannot pay. To get state finances through 03-04 (the year the state is in now), and to get the debt off the books, the state borrowed $2.5 billion from the state pension fund, and approved a $10.8 billion bond to be sold as soon as possible. A court has recently ruled the pension loan illegal. Some believe the $10.8 billion bond is illegal, too.

The state is, therefore, faced with three options to deal with this accumulated debt: (1) raise taxes; (2) cut spending drastically; or (3) refinance the debt over a period of time longer than one year with voter approval (to remove any legal doubt). Schwarzenegger promised not to raise taxes, so he is left with two options. He chose the refinance option, mainly because the Democrats won't cut spending enough to pay off the $13.3 billion in debt we already owe. He said, however, that he would not borrow the money unless the state imposed a strict spending limit. Republicans reluctantly agreed to go along with the borrowing, if the spending limit was part of the deal.

The Democrats then complained about the bond. Now, wait a minute. You either cut programs to pay for this accumulated debt, or you borrow the money; the choice is one or the other, not inaction. The debt will come due, and the banks will get real unhappy if the state doesn't pay. The bond helps the Democrats avoid massive program cuts. Most Republicans I know want the cuts. The Democrats do not.

Republicans want the spending limit, since overspending got us into this mess in the first place. Schwarzenegger's plan bridged this partisan divide by giving the Democrats a way to protect their programs, and Republicans a way to swallow a bitter bond pill. The Republicans swallowed the pill, the Democrats whined.

That is how Democrats negotiate. We'll take what we want, they say, give you nothing of what you want, and then cry about how difficult you are to negotiate with. The lesson to the Governor should be: kick them first, just to get their attention, and then negotiate. In this case, the Governor started out with the best solution, in light of the depth of the problem. The Democrats, who created the problem, then sought to blame the whole thing on him, and then deny him a solution.

That is Sacramento under Democrat domination. Maybe, just maybe, the people will get the idea, and change the Legislature like they changed the Governor. One can only hope.

Ray Haynes represents the 56th Assembly District in the California Legislature.

[FairOpinion]

Maybe Arnold should have a podium built outside the Governor's Mansion and start holding press conferences, so people will call him "Give 'em ____ Arnold." As in "I don't give 'em ____. I just tell the truth on 'em and they think it's ____."

===

Just give him a few months and he will do exactly that.
He has already been taking his agenda to the people directly and he will do more of it, I am sure.

[sruleoflaw]

I wonder if you follow any news accounts or look between the lines.

Why did almost every Democrat support the drivers license repeal? Would you like to tell me you don't think Arnold cut a deal with the Dems? His spokespeople have publicly said he is considering such a move.

Dude, you are in for some rude awakenings?

Why did EVERY STATE SENATOR OF THE GOP vote with McClintock and AGAINST ARNOLD except for poor Brulte and his successor? Arnold is a Kennedy liberal and the sooner you grasp reality the better off you'll be.

By the way, what is Arnold (the non-budget cutter) going to do when his $15 billion borrowing package is voted down? Plan on the tax hike with Dem help.

[Major_Risktaker]

Good Point!

What happens when a state goes into bankruptcy?

[Hoverbug]

Bravo!!!!!

Hb

[tubebender]

I thought Arnold had assembled a Blue Ribbon Group of advisor's to "Study da Budget" and show the world how to balance the budget...

[Hoverbug]

Your idol has clay feet, dearie.

Hb

[Lancey Howard]

Do you understand that the parasites who elect Democrats will continue to elect Democrats? The bottom line for the parasites is "free stuff" and the Democrat politicians get elected by buying the votes of the parasites with more and more "free stuff". The parasites will NEVER elect a Republican or anybody else who threatens the continued handing out of "free stuff". So how, exactly, will the California legislature EVER turn over to Republican control?

[FairOpinion]

Apparently you didn't read Haynes's article:

"The state is, therefore, faced with three options to deal with this accumulated debt: (1) raise taxes; (2) cut spending drastically; or (3) refinance the debt over a period of time longer than one year with voter approval (to remove any legal doubt). Schwarzenegger promised not to raise taxes, so he is left with two options. He chose the refinance option, mainly because the Democrats won't cut spending enough to pay off the $13.3 billion in debt we already owe".

And you also keep ignoring reality that CA Legislature is dominated by the Democrats.

[sruleoflaw]

I found two articles on www.nationalreview.com about what's happening in California. You won't believe Arnold's stunts already -- including negotiating his budget deal behind the backs of his GOP colleagues. The writer called it an act of perfidy. The next few months -- as the real Arnold appears -- should be fascinating.

[185JHP]

Great. There are some wonderful people in Cali. They deserve having someone who will say "This is what's right. This I will defend."

[Lancey Howard]

What happens when a state goes into bankruptcy?

That is exactly what needs to happen to California, and the sooner the better (and the cheaper for the rest of us). I believe that what would happen in the event of bankruptcy (or imminent bankruptcy) is similar to what happened with places like New York City and Philadelphia. It is called a "bailout" and it comes with an "oversight committee".

The "oversight committee" essentially then does what the legislature does not have the ability to do - - control spending. The committee takes over the purse strings while the Democrat legislature does things like allow 12-year-olds to get abortions without parental notification, etc.

[Hoverbug]

Dude, you are in for some rude awakenings?

FO ain't a dude. She's a dudette. Hb

[FairOpinion]

"The bottom line for the parasites is "free stuff" and the Democrat politicians get elected by buying the votes of the parasites with more and more "free stuff". "

==

Unfortunately that is true -- that is how we ended up with Socialist Republican of Santa Monica, where there are more tenants than property owners, so the tenants keep voting themselves more benefits, at the expense of private property rights.

"A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury."
--- Alexander Tytler

[sruleoflaw]

I did read the Haynes article. But apparently you haven't followed how the budget deal progressed. The massive borrow was tied to a strict spending limitation. Arnold, behind the backs of the GOP legislators, decoupled the effective spending limitation and stuck it to the GOP.

Help me then, Fair Opinion. WHY DID ONLY 2 GOP SENATORS SUPPORT THE BUDGET DEAL AND ALL THE DEMS DID? Can't you grasp reality. There's a problem when Arnold joins with all the Dems and only 2 GOP folks to ram something down the other GOP folks. Watch out. The fun is just beginning.

[FairOpinion]

CA is the world's fifth largest economy.

If CA goes bankrupt, it will have a major negative impact on the US and the world economy.

"Overall, the United States is the world's top economy followed by Japan, Germany, the United Kingdom, California [if it were broken out as a country] and then France. "

[FairOpinion]

Here you go again.

I never told anyone here my gender -- you don't know anymore, than anyone else.

Everyone is free to speculate.

But one thing you can be sure of, is that I always carry protection against annoying bugs.

[FairOpinion]

And your proposed REALISTIC solution of what could have been done, is....?????

[sruleoflaw]

Thanks for ignoring the questions.

Now please go back. Why did Arnold work with the Dems to stick it to the GOP?

The answer is a 13% cut for 18 months. Arnold doesn't have guts to do real budget cutting.

[Hoverbug]

Stop it! You're huting my feeeeeeelings. LOL

Speculate my ------!!!!

It ain't hard to tell.

Why on earth are you ashamed of your gender?

I'm male.

There. your turn. (although we all know)

And Arnie still blew it!!

Hb