CA: Analysis: Perception of budget is key

The budget plan that Gov. Arnold Schwarzenegger released Friday is about perception as much as anything, a signal to a waiting world that Sacramento is serious about tackling the state's fiscal problems and making California a better place to do business.

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and proposing billions in spending cuts

The "net zero sum gain crowd" is alive and well in the California media.

For those with basic common sense the italicized phrase above should read

and shifting billions in priorities within the budget

But the Republican governor's plan could generate genuine economic distress, at least in the short run. His proposed spending cuts would take billions out of the state's economy, and the news could be especially painful for state workers.Although the Schwarzenegger administration made no forecast of layoffs Friday, others believe they're inevitable.
There will be cuts in the bureaucracy in Sacramento," said state Controller Steve Westly. That, of course, could harm the region's economy. "A budget deficit is bad news for the people of the state of California -- it's worse news for the people of Sacramento,

; said Matt Newman, director of the economic forecast at California State University, Sacramento. Moreover, some say Schwarzenegger's medicine could do more harm than good. By raising college tuition and taking money away from transportation projects, Schwarzenegger would create long-term problems for the business climate, said Stephen Levy of Palo Alto's Center for Continuing Study of the California Economy.

Cry me a river. Poor old Dale Kasler must have several members of his family sponging off the tax payers of California...

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