Posted on 04/24/2006 4:28:50 PM PDT by NormsRevenge
I have refrained from commenting on California’s budget because it is still uncertain exactly what is going to happen in this year’s budget debate. This, however, is what we know up to this point in time.
Last year, the Legislature approved, and the Governor signed, a budget that increased state spending by $11 billion.
The government employee unions complained that it wasn’t enough. This year, the Governor proposed a budget that increased spending by an additional $7 billion.
The government employee unions are complaining that it is not enough.
The Governor’s budget spends $6 billion more than projected revenue.
The government employee unions complain that it isn’t enough.
In 1999, then-Governor Gray Davis proposed increasing spending by $9 billion. That was the largest spending increase in the history of the state of California, until 2000, when Gray Davis increased spending by $12 billion.
Last year’s spending increase was the second largest in California’s history. This year’s proposed increase is the same as the one in Davis’ first term. Unfortunately, Governor Schwarzenegger looks like he is making the same mistakes as Gray Davis. The only problem with his strategy is that if the budget collapses like it did during the Davis years, then the resulting budget deficit will be the Republican’s fault. In 1999-2001, Republicans could rightfully complain that the state’s budget woes were entirely Democrat’s fault. If Schwarzenegger’s plan is fully implemented, Republicans will lose that argument. Schwarzenegger’s spending plan is at least as bad as the spending plans proposed by Gray Davis, and, in my opinion, will lead to the same bad outcome if the economy should slow down (as it inevitably will).
The good news is that the Assembly Republicans have decided to say no to Schwarzenegger. Schwarzenegger said he wants to spend $7 billion more than the state receives in revenue. The Assembly Republicans said no, the state should only spend what it takes in.
Schwarzenegger said he wants to expand government as fast as Gray Davis. The Assembly Republicans said no, they want to slow down the growth of government.
The Schwarzenegger budget did not resolve the state’s debt issues, particularly the $15 billion debt that Gray Davis created. The Assembly Republicans said they want to make sure that debt is paid, before we spend another dime in new state programs.
The Schwarzenegger budget does not seek to resolve the growing government pension problem. The state’s Legislative Analyst Office recently reported that the state is facing a $40 to $70 billion problem because it has not funded state retiree health benefits adequately. According to the LAO, it will take $6 billion a year to adequately fund these former state employee benefits. Assembly Republicans say the state budget must resolve this impending crisis.
The good news is that when the state goes bankrupt, I won’t be in the Legislature. The bad news is that the state will go bankrupt if it continues to follow this course. But if the Governor listens to Assembly Republicans, he will avoid bankruptcy. The government employee unions will continue to complain. Who will the Governor listen to, Assembly Republicans or the unions? Only time will tell.
I hope they go bankrupt soon.
You can't fix something like California without it first hitting rock bottom.
Arnold talked, unions balked, and so he walked...to the dark side.
Meet the new boss--same as the old boss. :-(
They can't go bankrupt, but they will end up defaulting on their bonds.
It didn't help that he let the dems off the hook by borrowing 15 billion..
It had an undesired effect as you mentioned at the polling places last November, a couple worthy initiatives got tossed with a few stinkers as well. The blame can be spread around for that.
If it wasn't for all my family over there, I would hope for the 8.0 quake. I lived there almost all my life and I am sickened by the way they have destroyed that beautiful state.
I thank God that I left when I did.
The R.W.Ratikal account obviously has no knowledge of California's recent economics. The question becomes why offer an opinion that is divorced from reality?
FYI. Since taking office the Austrian has proposed and approved record breaking spending package after spending package for the state. Spending well in excess of income. He has borrowed billions to continue the spending. He has suggested no cuts in spending. Only increases.
Schwarzenegger's only opponents are elected Republicans in the Assembly and Senate. Since taking office Schwatzeneggger has employed extra-constitutional maneuvers to disenfranchise these Republicans from the budgeting process. Many elected Republicans are bitter and wish that Schwarzenegger would cease and desist his shenanigans.
No, R.W.Ratikal, Schwarzenegger has not tried. Just the opposite. He is part of the problem and not part of the solution. The sooner that Californians can remove the Austrian Pretender from office and conservatives can drive the Wilsonegger gang from the CRP the better the state and the CRP will be.
I too wish a lot more folks had sucked it up and at least voted a partial ballot to put that prop over the top.
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