The head of the San Diego Tax Fighters, Richard Rider, (an author of the ballot argument against Prop 58) is on a rampage lately. He recently sent out email blasting this. Another one of his emails was posted at Flash Report a couple days ago regarding the State of the State speech and Arnold's leftward leaps. (It was titled "The Terminator Morphs into Girlie Man." You probably need to scroll back to the archived pages on the blog to find that one.)
Governor Spendanator Runs AmuckSan Diego – In his latest State of the State speech, Governor Spendanator has come up with another whopper of a budget, once again proposing to spend more than the state takes in. The Democrat legislators doubtless will match his figure and raise it. Since the governor never uses his powerful line item veto, the actual budget likely will be even larger than the one he is proposing.
But what about Proposition 58, the Balanced Budget Act? This constitutional amendment was overwhelmingly passed by California voters in the spring of 2004.
Doesn’t Prop 58 preclude such deficit spending? That’s what governor Schwarzenegger and his cronies told us in their ballot argument. Perhaps now is a good time to look back at what we were told by the politicians, and compare their promises with what actually occurred.
A little background: The new governor wanted $15 billion worth of bonds issued to give him the breathing room to get spending under control. That became Prop 57, and it passed easily. To make it legal, the California constitution had to be amended so that bonds could be issued to pay for routine operating expenses – there was a restrictive requirement that such bonds had to be used to actually build something! Thus Prop 58, the mislabeled “Balanced Budget Act,” was also put on the ballot to cleverly repeal this safeguard while pretending to control spending. It passed easily, getting over 70% of the vote. After all, how many voters would oppose a measure requiring a balance budget?
Three taxpayer advocates (including yours truly) co-wrote the ballot book arguments opposing this measure. We pointed out that this measure would NOT require a balanced budget. The proponents flat out lied about this requirement, as results proved. We were 100% right, and they were dead wrong.
(snip)
LOL. I didn't realize that Herb Wesson was in on this one too. What a bunch of scoundrels.
http://primary2004.ss.ca.gov/propositions/prop58-arguments.html
ARGUMENT in Favor of Proposition 58
State government spending in California is out of control. Over the past three years, state spending has significantly exceeded state revenues.
Proposition 58 will require the Governor and the California State Legislature to ENACT a BALANCED BUDGET. Right now, the Governor is only required to propose, not enact, a balanced budget. This loophole has led to the huge budget deficits that plague California.
The California Balanced Budget Act:
WILL require a BALANCED BUDGET;
WILL require that SPENDING NOT EXCEED INCOME each fiscal year;
WILL require general funds to be put in a "Rainy Day" fund to build a RESERVE to protect California from future economic downturns. The Budget Stabilization Account will also be used to pay off the California Economic Recovery Bond early;
WILL allow the Governor to call a fiscal emergency if revenues drop below expenditures or if expenditures exceed revenues; and
WILL prohibit the Legislature from acting on other legislation or adjourning if they fail to pass legislation to address the crisis.
California faces unprecedented budget deficits. Overspending has led to serious shortfalls which threatens the state's ability to pay its bills and access financial markets. This proposition is a safeguard against this EVER HAPPENING AGAIN. Proposition 58 will prevent the Legislature from ENACTING BUDGETS THAT SPEND MORE MONEY THAN WE HAVE.
The California Balanced Budget Act will require, for the first time, the Governor and the Legislature to pass a BALANCED BUDGET. This proposition, along with the California Economic Recovery Bond Act, will give us the tools we need to resolve California's budget crisis.
As California faced unprecedented budget deficits for the last 3 years, the problem was ignored, spending exceeded revenues, and there was no process in place to address the fiscal crisis. Proposition 58 will allow the Governor to call a Special Session of the Legislature to deal with future fiscal crises. If the Legislature fails to act within 45 days, then they will not be able to recess and they will not be able to pass any other legislation. This will force the Governor and the Legislature to work together to find a solution to the problem BEFORE IT IS TOO LATE.
The California Recovery Bond, Proposition 57, and the California Balanced Budget Act, Proposition 58, together will give California's leaders the tools necessary to restore confidence in the financial management of the State.
Please join Governor Arnold Schwarzenegger, State Controller Steve Westly, Superintendent of Public Instruction Jack O'Connell, the California Chamber of Commerce, the California Taxpayers' Association, and all 80 members of the California State Assembly—both Republicans and Democrats—and support Proposition 58.
ARNOLD SCHWARZENEGGER, Governor State of California
HERB J. WESSON, JR., Speaker California State Assembly
JENNY OROPEZA, Chairwoman Assembly Budget Committee