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CA: The problem is spending
SF Examiner ^ | 5/15/05 | Op/Ed

Posted on 05/16/2005 12:56:40 PM PDT by NormsRevenge

This summer's Sacramento budget debate will be more like a return to the old days of 2000.

Instead of agonizing over multibillion-dollar cuts, as has been the featured event of recent years, this time legislators and the governor will be debating how to spend $4 billion in unexpected revenues.

Typically in the past, state politicians would swarm over any surprise windfall like sharks in a feeding frenzy. One-time revenue growth would be carved up by the Legislature as if budget cash flow would never decrease again. This destructive mistake cannot be allowed to happen again.

Our first look at the May 13 budget revision was generally quite heartening. The state's economic picture seems a lot better now than it did when the January budget draft appeared.

Unanticipated new revenue has arrived from a generally improving economy, a successful tax amnesty program and increased property taxes as housing got resold at ever-higher prices.

We're pleased that Gov. Schwarzenegger wants to use the "extra" $4 billion to reduce California's costly debt load, reverse some of the most painful cuts and return $600 million in vehicle license fees to cities and counties.

The governor does not intend to push California further into debt by issuing any of the $1.7 billion in Proposition 57 deficit bonds approved by voters last year. And he wants to leave an extra-large reserve of $1.4 billion, which should help improve the state's credit rating and be a safeguard against any sudden fiscal downturns.

All of this looks to us like solid and responsible planning. But Schwarzenegger's big challenge here will be to fight off the immense and conflicting pressures from powerful legislative blocs seeking to add just a little more spending here and a little more spending there, in support of admittedly worthwhile programs.

Educators are one group that will probably be dissatisfied with the current $115.7 billion budget, although Schwarzenegger has penciled in $230 million to reduce class size in the state's worst performing schools and $57 million for incentive pay to teachers in underachieving schools and for teachers who improve student test scores.

If the governor does call a special election this November, school advocates might get on the ballot to seek the full $2 billion they say statewide voters allocated to classrooms. Advocates for schools, health care, social services, transit, public safety and so many other necessary state services must realize that money is not infinite in California.

The problem is not revenue; it's spending.

We hope that, for a change, our elected officials and the various interest groups will learn they must live within their budgets.


TOPICS: Business/Economy; Culture/Society; Editorial; Politics/Elections; US: California
KEYWORDS: calbudget; california; problem; spending

1 posted on 05/16/2005 12:56:45 PM PDT by NormsRevenge
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To: NormsRevenge

Same problem in WA--spending. The legislators refuse to quit spending.


2 posted on 05/16/2005 1:07:00 PM PDT by lilylangtree (Veni, Vidi, Vici)
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To: NormsRevenge
" this time legislators and the governor will be debating how to spend $4 billion in unexpected revenues."

Give it back to the taxpayers ya wankers!

3 posted on 05/16/2005 1:07:45 PM PDT by Enterprise (Coming soon from Newsweek: "Fallujah - we had to destroy it in order to save it.")
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To: NormsRevenge
Jimmy Carter and all other Democrats in history along with the current crop of Republicans in CONgress are on and have been on an addictive spending binge!!!

I know, I know. We're only talking about CA here!!!

4 posted on 05/16/2005 1:31:09 PM PDT by SierraWasp (The "Heritage Oaks" in the Sierra-Nevada Conservancy are full of parasitic GovernMental mistletoe!!!)
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To: NormsRevenge
It's tax cuts that stimulated the economy, lead to hiring, to consumer spending and in the final end:
Whoa, led to increased tax revenues by the States and the Feds.
Heard any rhetoric lately by the Dems about interest rates or deficits killing us, a lousy job market, and a few other looming disasters?
Well they're busy already addressing other problems facing us and are against whatever comes along.
Solutions need to be addressed by...guess what?
The Dems speciality: Filibustering.
5 posted on 05/16/2005 1:32:08 PM PDT by hermgem
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To: NormsRevenge
"...in support of admittedly worthwhile programs."

WHAT??? Oh... That's right! I forgot all those "crying unment needs" I heard the Liberals peeing and moaning about!!!

6 posted on 05/16/2005 1:34:49 PM PDT by SierraWasp (The "Heritage Oaks" in the Sierra-Nevada Conservancy are full of parasitic GovernMental mistletoe!!!)
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To: NormsRevenge

I guess it never occurred to RINOld and the rest of the clowns in Sacramento that they just might use the 4 billion to pay down the deficit...
gezzzzzz


7 posted on 05/16/2005 1:41:32 PM PDT by kellynla (U.S.M.C. 1st Battalion,5th Marine Regiment, 1st Marine Div. Viet Nam 69&70 Semper Fi)
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To: SierraWasp; kellynla

I feeel for the Republicans that will again be called to stand in the way as much as they can as the 'lubricators' do their state business to California taxpayers again as the budget process unfolds in all its gory magnificence.


8 posted on 05/16/2005 1:43:58 PM PDT by NormsRevenge (Semper Fi ...... The War on Terrorism is the ultimate 'faith-based' initiative.)
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To: NormsRevenge

Yeah! Here comes alla that "Big Five" bool chit again!!!


9 posted on 05/16/2005 1:48:14 PM PDT by SierraWasp (The "Heritage Oaks" in the Sierra-Nevada Conservancy are full of parasitic GovernMental mistletoe!!!)
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