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Governor: State stands at cliff's edge - Schwarzenegger campaigns for budget rescue
LA Daily News ^ | 4/8/09 | Rick Orlov

Posted on 04/08/2009 8:46:59 PM PDT by NormsRevenge

WOODLAND HILLS - As he launched a radio ad campaign Tuesday for his budget measures on the May 19 ballot, Gov. Arnold Schwarzenegger said failure to approve the package would worsen the state's already-dire fiscal crisis.

"If they don't pass, we will be facing a $50 billion problem," Schwarzenegger said at a meeting with Daily News editors and reporters. "It will mean massive cuts in education, hospitals, prisons. These are things people don't want to see cut."

Schwarzenegger's campaign committee, Budget Reform Now, began its advertising campaign Tuesday for the six ballot measures - Propositions 1A, 1B, 1C, 1D, 1E and 1F - with a radio ad that highlights the impact of the budget crisis on state services.

The campaign has raised more than $6 million so far, officials said, to finance the print, radio and television campaign. The governor has also held public appearances and town town hall meetings around the state to rally voter support.

"When we are able to explain to the people, they get it," Schwarzenegger said. "We know people are furious. But once we explain to them what we are trying to do, they support it."

Schwarzenegger said the proposals are similar to ones that past governors have sought to limit state spending.

"None of us like raising taxes," Schwarzenegger said. "(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem."

The measures were part of a compromise developed by the governor and lawmakers to pass the budget this year.

The package enacts a wide range of budget reforms including extending tax increases, creating a bigger rainy day fund, borrowing against future lottery earnings and capping raises of top state officials when the state is facing a deficit.

Most of the attention and opposition has been generated against Proposition 1A, which extends new tax increases for up to two years to balance the budget, generating about $16 billion.

Some public unions oppose the measure partly because of concern it would limit growth and salary increases for the state work force.

The Howard Jarvis Taxpayers Association has come out against Proposition 1A, saying it's a tax increase that does nothing to rein in spending.

"It has a built-in loophole allowing them to increase spending if they get more revenue," said Jon Coupal, president of the organization.

"This is just another shot of heroin for addicts. Until there is a realization that the taxpayer capacity to pay is limited, they will continue to overtax and say the sky is falling. We just don't buy it."

But the governor argued the measure also includes provisions to establish a rainy-day fund - which sets aside revenues in boom years to cover the extra costs in down years. Schwarzenegger said it also contains a cap on spending.

"When you get extra money, they will always spend it," the governor said of the Legislature. "That's the way it's always been. It's just human nature. That's why this budget reform is historic."

Joel Fox, a Republican consultant and former president of the Jarvis association who accompanied Schwarzenegger at the meeting, supports the measures.

"This is a flexible cap that will survive," Fox said. "None of us like taxes. But, if you look back, all our taxes have been raised to fund existing programs, not pay for new programs."

One option the governor says is not on the table is allowing the state to collapse.

"The cost of inaction is letting California go off the cliff. We still have all those contracts to honor and a federal receiver could come in, and no one wants that," said Assembly Minority Leader Mike Villines, R-Fresno.

Despite bipartisan agreement in Sacramento over the measures, a poll by the Public Policy Institute of California released in March found that all but the one limiting public officials' raises have an approval rating under 50 percent.

Schwarzenegger said he also felt he has a responsibility as governor to make sure that services - from education to health care - continue to be offered.

"When I was running, I opposed taxes. I despise taxes," Schwarzenegger said. "But when you get in this office, you see things differently. You realize how important these services are to the people."

Also, he said, the need for government services has increased as the economy has declined.

Schwarzenegger said he has held town hall-style meetings where he asks people where they would cut funding, and everyone wants to save services like schools, hospitals and prisons. Tax increases, in such cases, become the only option.

Schwarzenegger also rejected proposals to raise money by legalizing and taxing marijuana or selling state assets such as San Quentin prison.

"You hear those ideas all the time, you could make maybe $1 billion and we have a $50 billion problem," Schwarzenegger said. "When you get down to it and people say we should legalize marijuana, allow oil drilling or sell San Quentin, it is a ridiculous notion."

The governor said he also is aware of voter anger and frustration, but he hopes the campaign can appeal to voter reason.

He said he was prepared to stand up for legislators - primarily Republicans - who support the package and face threats of recall or serious opposition in their re-election.


TOPICS: Business/Economy; Crime/Corruption; Extended News; News/Current Events; Politics/Elections; US: California
KEYWORDS: armageddon; arnoldlegacy; calbudget; california; calinitiatives; campaigns; cliff; cliffsedge; deficit; prop1a; prop1abcdef; schwarzenegger
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"None of us like raising taxes," Schwarzenegger said. "(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem."

--

You jump first, Gub.

Enjoy the ride to the bottom.

1 posted on 04/08/2009 8:46:59 PM PDT by NormsRevenge
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To: NormsRevenge

ping for later


2 posted on 04/08/2009 8:49:03 PM PDT by mick (Central Banker Capitalism is NOT Free Enterprise)
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To: NormsRevenge

The wealth flight from CA will be massive.

It will start with businesses and those who rent but do well.

I was planning to move but I couldn’t make the numbers work. But I won’t be buying anything of substance in CA — I am willing to schlep stuff from other states where I work to save 2 or 4 percent.


3 posted on 04/08/2009 8:57:38 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks.)
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To: NormsRevenge

It won’t pass. People in my state are fed up. Even many Democrats are pissed off. Everyone in the sate just assumes Arnold is a Democrat now, he is so far left in his spaending and taxing.....If the GOP could get it’s act together in this state, they could elect a Republican Governor and unseat that bitch Barbara Boxer in 2010 as well as gain some seast in the state assembly and senate. But so far, the California GOP is a disaster.


4 posted on 04/08/2009 8:58:21 PM PDT by AmericanSphinx71 (Pray for America)
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To: NormsRevenge
Increasing tax rates decreases tax revenues as the afflicted flee to a less onerous location...out of the state of CA. Those most afflicted are also those most capable of relocating to a better place. Their numbers are small, their "contributions" are substantial. When they go, they will be missed and not easily replaced.
5 posted on 04/08/2009 8:59:28 PM PDT by Myrddin
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To: All

Please, Californians, if you go to other states, do not try to remake them into California-lite. Same goes for New Yorkers.


6 posted on 04/08/2009 9:04:18 PM PDT by Montanabound
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To: AmericanSphinx71

I will vote no on any of these that raises taxes or fees. However, if there is money transferred from one program to another I might vote for it. For instance, if money is taken from anti-smoking funds, and transferred elsewhere, hell yes I’ll vote for it. It will piss off the liberals to no end.


7 posted on 04/08/2009 9:05:31 PM PDT by Enterprise (I went to America and all I got were some DVDs and little helicopters.)
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To: NormsRevenge

With masses ready to follow Limbaugh out of NY, and, Californians being forced out also, a mighty collision may occur, say in Kansas or Florida. Tax base collapse is a common denominator in all states now, and, efforts by the Fed govt. to delay things is driven by a desire to buy time to transfer as much property to other coffers before the mechanism for transfer, the big banks and financial entities (e.g. AIG) fold themselves. ...hardly something to cause a drumbeat to save profligate California.

There is no sign that we will still have our freedom when the time for a recovery comes around, or that any interest in our freedom will be the object of government at that time. The leaning to the left by this administration is to the left of known leftists, and hardly reassurring. The Congressional Black Caucus has just visited and celebrated Fidel Castro...what happened to Obama?

Bailing out California is not to be recommended..same with all other states.

Both the state of California and the Fed Govt are after the funds in the battered CALPERS pension funds....unconscionably...and, the pension funds are being pressured to accept TOXIC assets by Geithner. Calpers should not avail their threatened pension funds any further. That Swarzenegger is asking for CALPERS money is representative of how desperate he is, for Geithner..the same.


8 posted on 04/08/2009 9:08:39 PM PDT by givemELL (Does Taiwan Meet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: NormsRevenge

I hope it fails miserably


9 posted on 04/08/2009 9:09:04 PM PDT by GeronL
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To: NormsRevenge

Cut massively you pos rino governor. Then take out the ax and fire 1 out of every 4 government employees. Then step down in shame.


10 posted on 04/08/2009 9:10:40 PM PDT by samadams2000 (Someone important make......The Call!)
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To: NormsRevenge
Schwarzenegger just doesn't get it.

He is way in over his head, he is being played by the very people he tried to fight against in 2003. Schwarzenegger thought Sacramento would be a movie set where he would ride in with chiseled arms holding a variety of firearms and weapons, while the crooks and cronies in the state capitol all fall to the ground (Cue Wilhelm screams).

11 posted on 04/08/2009 9:14:49 PM PDT by Extremely Extreme Extremist ("President Obama, your agenda is not new, it's not change, and it's not hope" - Rush Limbaugh 02/28)
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To: NormsRevenge

bump


12 posted on 04/08/2009 9:15:00 PM PDT by lowbridge (It's not that liberals are ignorant, it's that they know so much that isn't so - Ronald Reagan)
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To: freedumb2003
I was planning to move but I couldn’t make the numbers work.

I made the numbers work in 2000 by continuing to do the same job in Idaho that I did in San Diego. That worked well until last November. My customers have lots of work for me...and no contracts signed to pay for it. Thus far, there aren't any local jobs with similar income. If you move, be sure the new location works economically if your employment options change. I'm still much better off than if I had stayed in San Diego. The lower cost of living makes it possible to consider a lower paying job to keep food on the table.

13 posted on 04/08/2009 9:16:43 PM PDT by Myrddin
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To: givemELL
The potential raiding of CALPERS is an early indication of what the leftists have in mind for all of our 401k retirement resources. They can't spend the money fast enough, nor steal it as fast as their profligate spending demands.
14 posted on 04/08/2009 9:20:46 PM PDT by Myrddin
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To: NormsRevenge

You know, I’d hate to give the White House ideas, but when he started tossing around trillions like they were nothing, I thought that another move for him to make would be to address every state’s budget deficit. In a real Federalism-destroying move, he can toss them enough federal money to wipe out their total deficit as long as they balance their annual budget. Millions of voters (and especially retired teachers and state workers) would be ecstatic, he’d make vassals of every state government, he’d have strings to control every state on important issues, and it would only waste another trillion or so. He’d look like he was promoting fiscal responsiblity, he’d be using our own money against us to give an excuse to control every level of government, and he’d be hailed as a hero while continuing to flush trillions down a bottomless pit.


15 posted on 04/08/2009 9:21:05 PM PDT by Teacher317
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To: NormsRevenge

I wonder what the Governor and the Legislature say when confronted with the fact that state spending has far exceeded both the CPI and population increases and state employee numbers have continued to climb rapidly ...


16 posted on 04/08/2009 9:21:51 PM PDT by sailor4321
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To: Myrddin
I made the numbers work in 2000 by continuing to do the same job in Idaho that I did in San Diego.

I can do my job anywhere in the country -- and do. I am sending this to you from Richmond, VA. I wanted to go to Grapevine or Irving, Texas.

But I can't move the home right now for close to what I need for it and the rental market is glutted, too.

God gave us patience for a reason. I thank Him for that now more than ever.

17 posted on 04/08/2009 9:22:29 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks.)
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To: Montanabound
Please, Californians, if you go to other states, do not try to remake them into California-lite. Same goes for New Yorkers.

Thank you. N. Dallas and Austin are a bastion of transplants and it's nutz. I've had to peel many a tree-hugger off my front door pandering signatures and donations for one project or another.

18 posted on 04/08/2009 9:25:44 PM PDT by LaineyDee (Don't mess with Texas wimmen!)
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To: NormsRevenge; SierraWasp; ElkGroveDan; Czar; CounterCounterCulture; tubebender; CAluvdubya; ...
"If they don't pass, we will be facing a $50 billion problem," Schwarzenegger said at a meeting with Daily News editors and reporters. "It will mean massive cuts in education, hospitals, prisons. These are things people don't want to see cut."

"When we are able to explain to the people, they get it," Schwarzenegger said. "We know people are furious. But once we explain to them what we are trying to do, they support it."

"None of us like raising taxes," Schwarzenegger said. "(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem."

[this comment has been deleted to save the mods the trouble]

19 posted on 04/08/2009 9:39:55 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: Extremely Extreme Extremist
...he is being played by the very people he tried to fight against in 2003.

The voters are the ones that were played.

Schwarzenegger was just the "electable" replacement if Gray Davis were to be recalled. The letter by his name didn't mean anything to the power brokers.

20 posted on 04/08/2009 9:42:18 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: calcowgirl
"None of us like raising taxes,"

No, like is too mild a word. Taxes to liberals are like pornography to a teenage boy. They'd die without it.

21 posted on 04/08/2009 9:43:05 PM PDT by fieldmarshaldj (~"This is what happens when you find a stranger in the Alps !"~~)
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To: calcowgirl

C’mon, back, Off-White. All is forgiven.


22 posted on 04/08/2009 9:44:02 PM PDT by fieldmarshaldj (~"This is what happens when you find a stranger in the Alps !"~~)
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To: NormsRevenge
"When I was running, I opposed taxes. I despise taxes," Schwarzenegger said.
"But when you get in this office, you see things differently.
You realize how important these services are to the people."

ROFL! He is such a pathetic spineless girly man liberal dolt!

23 posted on 04/08/2009 9:45:15 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: fieldmarshaldj
Off-White

?

24 posted on 04/08/2009 9:46:04 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: calcowgirl

The distinguished former Governor Davis, the last fiscal Conservative (*snicker*). Y’know, Off-White.


25 posted on 04/08/2009 9:47:27 PM PDT by fieldmarshaldj (~"This is what happens when you find a stranger in the Alps !"~~)
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To: calcowgirl

“It will mean massive cuts in education, hospitals, prisons. These are things people don’t want to see cut.”

Just eliminate them all and solve the problem!


26 posted on 04/08/2009 9:48:18 PM PDT by dalereed
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To: freedumb2003
The wealth flight from CA will be massive.

"Will be"? There are already 1,000 native born Americans a day pulling up stakes and high tailing it out of California (my home state).

California ranks dead last among the 50 states in polling of business people across the country.

I moved my own business and my family out of Cali three years ago when the voters rejected Arnold's first ballot initiatives. Those initiatives were common-sense, conservative measures which could have pulled California out of the nosedive, but no, the people had to have their pie.

That was enough for me. Handwriting on the wall.

27 posted on 04/08/2009 9:49:41 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: samadams2000

” Then take out the ax and fire 1 out of every 4 government employees”

Half or more would be better!


28 posted on 04/08/2009 9:51:03 PM PDT by dalereed
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To: freedumb2003
But I can't move the home right now for close to what I need for it and the rental market is glutted, too.

I was watching my home "value" rising in 1999 and 2000. While I was thrilled with the higher valuation, I also realized that each increase was reducing the number of buyers that could qualify. I didn't want to price myself out of being able to leave. The house that I purchased in Aug 1983 for $105,000 was sold in Feb 2001 for $242,000. Subsequently, the house could have sold for nearly $500,000. I'm pretty sure the current value is fairly close to what I received. That's fine. I own my house in Idaho...free and clear. I purchased another small house with my tax refunds after the Bush tax cuts in 2004. That house has appreciated about $35,000 since I purchased it.

29 posted on 04/08/2009 9:58:05 PM PDT by Myrddin
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To: Windflier
Those initiatives were common-sense, conservative measures which could have pulled California out of the nosedive, but no, the people had to have their pie.

None of those initiatives would have changed the fiscal situation. Prop 76 did authorize even more borrowing, though.

30 posted on 04/08/2009 10:02:59 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: Montanabound

Why not? People from all over the country moved here and did it to California.


31 posted on 04/08/2009 10:05:07 PM PDT by SoCal Pubbie
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To: dalereed
When all the 3 strikes losers get dumped back into "civil" society, the failure to keep them incarcerated will be noticed. What a fabulous waste of the original expenditure of law enforcement and judiciary resources to separate them from "civil" society. No problem. We'll just have to spend the money again. Lots of us will be room temperature in the process. Why not? It "saves" money.
32 posted on 04/08/2009 10:08:17 PM PDT by Myrddin
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To: freedumb2003

what a disgrace! The state of Ca. government spending has literally doubled in trhe past 10 years. Governor, cut back just like private industry must. You are histroy, dude...kiss your politcal ass goddbye! audious...


33 posted on 04/08/2009 10:09:13 PM PDT by fabian
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To: calcowgirl; NormsRevenge

I’m taking 2 aspirin, please don’t call me in the morning...


34 posted on 04/08/2009 10:15:19 PM PDT by tubebender
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To: NormsRevenge

“None of us like raising taxes,” Schwarzenegger said. “(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem.”

Schwarzenegger has a reality problem. I’m not hallucinating or on drugs and I don’t have a “math problem”.

The state government has a SPENDING problem that is bankrupting the state and its citizens. The state already has practically the highest taxes in the country.

CUT THE DAMN SPENDING YOU FREAKING MORONS!


35 posted on 04/08/2009 10:15:50 PM PDT by DB
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To: NormsRevenge
"None of us like raising taxes," Schwarzenegger said. "But anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem."

Joel Fox, a Republican consultant and former president of the Jarvis association who accompanied Schwarzenegger at the meeting, supports the measures. "This is a flexible cap that will survive," Fox said. "None of us like taxes. But..."

Despite bipartisan agreement in Sacramento over the measures...

Yes. I absolutely MUST be hallucinating.

36 posted on 04/08/2009 10:17:07 PM PDT by Lancey Howard
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To: tubebender

Tequila shots for me! Then aspirin! LOL.


37 posted on 04/08/2009 10:17:44 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: Lancey Howard

Joel Fox has joined the enemy — again.

Jon Coupal and the HJTA are fighting against Prop 1a, along with a few others.

There is no “bipartisan” agreement, although our spineless directionless CA GOP is so inept that they can’t decide whether to oppose or support it without
first calling a meeting and voting on it — which won’t happen until April 18th.

WASS!


38 posted on 04/08/2009 10:25:55 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: NormsRevenge
When the People's Republik of Kalifornia shuts down the office which is charged with enforcing the law against me having a plastic pistol grip on my rifle, then I might believe that they have a budget crisis. And not before.

I'm tired of providing taxes used to infringe my right to keep and bear arms. Let the public employees eat cake.

39 posted on 04/08/2009 10:29:32 PM PDT by William Tell
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To: y'all
The Howard Jarvis Taxpayers Association has come out against Proposition 1A, saying it's a tax increase that does nothing to rein in spending.

"It has a built-in loophole allowing them to increase spending if they get more revenue," said Jon Coupal, president of the organization.

40 posted on 04/08/2009 10:29:43 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: Myrddin

“Increasing tax rates decreases tax revenues as the afflicted flee to a less onerous location...”

..or simply stop producing as much as they used to.


41 posted on 04/08/2009 10:30:46 PM PDT by Tublecane
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To: NormsRevenge

Sorry Girlyman...

Looks like you’re sol!


42 posted on 04/08/2009 10:33:52 PM PDT by Randy Larsen ( BTW, If I offend you! Please let me know, I may want to offend you again!)
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To: Randy Larsen; calcowgirl

You called it right! Good call on the Hasta La Vista Baby slave to the Kennedy clan!!!


43 posted on 04/08/2009 10:43:25 PM PDT by SierraWasp (Galloping suffocating American Socialism stinks like BO!!!)
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To: samadams2000
Then take out the ax and fire 1 out of every 4 government employees.

Exactly, but the key is breaking the unions. My wife works in CA state government and it is no mystery that easily 20% of the people in her professional-heavy agency, and probably a greater percentage in other agencies, are total deadwood and spend their days explaining why they are "too busy" or unable to do an assignment if they are not playing solitaire on their computers (no kidding, I have walked through the office areas and seen it).

As in private business, bankruptcy/collapse is the only chance at restructuring the contracts (unions) that burden the state. And we need to throw out the Dem legislators that hand out billions to the organizations that will employ them at multi-100K salaries when they are termed out. Giving those self-serving idiots/criminals another lease on life just postpones what is really needed.

44 posted on 04/08/2009 11:04:41 PM PDT by SFConservative
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To: NormsRevenge

Why would I care about saving a Ca state employees job when they could give a rats ass about me losing mine.


45 posted on 04/08/2009 11:13:42 PM PDT by Always Independent
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To: Windflier

I’m still here in tax-hell SoCal. Must admit the weather and natural beauty and life quality still have a hold on me. But think about leaving and where to go every day. I would be sad to leave. New Mexico and Tucson are high on the list...


46 posted on 04/08/2009 11:28:29 PM PDT by bayareablues
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To: NormsRevenge

What happens to the initiatives that were recently passed? Anyone know? Like the “Safe, Reliable High-Speed Passenger Train Bond Act that just passed last year?

What happens when the voters vote for initiatives that cost money but the state has no money? Are they just put on hold? Or do they just fade away?


47 posted on 04/08/2009 11:46:44 PM PDT by Auntie Mame (Fear not tomorrow. God is already there.)
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To: calcowgirl

The state budget doubled in ten years. Now we can’t cut a thing without decimating every important service.

Sure Arnold. Someone doesn’t understand math indeed.

These bills are going to crash and burn. The populace is not happy right now.

The governor and the legislature are public enemies number one and two these days.


48 posted on 04/08/2009 11:50:48 PM PDT by DoughtyOne (Pres__ent Obama's own grandmother says he was born in Kenya. She was there.)
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To: Always Independent
Why would I care about saving a Ca state employees job when they could give a rats ass about me losing mine.

That's very good!

49 posted on 04/09/2009 12:12:25 AM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: Auntie Mame
What happens when the voters vote for initiatives that cost money but the state has no money?

They create separate funds with special protections for their pet projects. Stem cell research, solar roofs, hi speed rail will all be fine.

But they'll shut off your water.

50 posted on 04/09/2009 12:14:09 AM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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