Davis calls for special session; $5 billion in midyear cuts

SJ Mercury News ^ | 11/21/02 | Mercury News Staff and Wire Reports

[NormsRevenge]

Hi! Remember Me? I'm Governor Gray Davis and You are so skrewed.

Gov. Gray Davis said today the state's budget problems are even worse than previously reported, and he is calling the legislature into special session on Dec. 9 to chop $5 billion immediately.

[NormsRevenge]

Well, Well ..Lookie See Here.. First the TaX Cuts .. and then the TaX Hikes

[McGavin999]

Does this surprise anyone? Amazing how they always seem to discover AFTER an election that the problem was a little larger then they realized. I propose that only democrats have their taxes raised since they're the ones who voted the moron into office.

[NormsRevenge]

Just forget about the White House, Guv... You done beached your presidential hopes along time ago like this whale.

Thu Nov 21, 6:15 PM ET

Twelve-pound 'Mojo,' a wired-hair terrier, runs around the corpse of a 60-ton North Atlantic Right Whale, in this April 21, 1999 file photo in Wellfleet, Mass., that was found dead two miles off the Wellfleet coast. The Center for Coastal Studies officials, who towed the whale ashore, determined the whale was struck by a ship. An environmental group asked the federal government Thursday, Nov. 21, 2002 to expand the right whales breeding and living areas shielded by the Endangered Species Act. (AP Photo/Matt York)

[B4Ranch]

Californicate is showing the rest of the world how to screw yourself with professionals. Re-elect incumbants and you have the best professionals available!

Asking the working middleclass to feed all the ILLEGAL aliens isn't going to work very much longer.

[winner3000]

Something tells me that Davis will do a better job on this term than the last. Because he cannot run again, he has nothing to lose by doing the right thing and cutting programs. It's going to be fun hearing all the screaming from Democrats over the next few years as these programs are cut. I also hope they have a huge fight over increased taxes. This will play well nationally and will show once again the Democrats as the party of taxing and spending.

[umgud]

Likk for new or increased cigarette, SUV, ammo and other taxes very soon.

[NormsRevenge]

Ping

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[kellynla]

Can't say we didn't warn them eh, Norm. I just gave myself a 9% tax cut. Incorporated in NV. Next, selling the house, relocating the business and homestead.

[NormsRevenge]

Good Luck in your new adventure. I hope we can get the hell out of San Jose eventually, too. Probably head towards the Reno area.

In retrospect, Simon would have been taking all the crap for this mess in the end. I keep hearing that but I wish California or at least half the registered Republicans would have got out and voted for Simon. We have more problems then just the budget that need serious tending.

[kellynla]

Thanks for your well wishes and good luck to you, Marine. You are correct. If the GOP'ers had come out and voted Simon would have won. But in retrospect it may be a blessing in disguise. Let the Dimwit Davis face the music. I'll keep in touch and will probably maintain a residence here in SoCal especially for the summers. Too damn hot in Vegas for me in the summer.

[NormsRevenge]

Sac Bee's AP version of story.

Davis calls for special session; $5 billion in midyear cuts

Published 6:31 p.m. PDT Thursday, November 21, 2002

Gov. Gray Davis said Thursday he will call the Legislature into a pre-Christmas special session to address a budget deficit he said likely will exceed $21.1 billion.

Davis said he will ask lawmakers to convene Dec. 9 to take up $5 billion in midyear cuts, "recaptures and other budget changes" that he will propose for the state's current budget.

"The problem is serious enough that it requires immediate action," Davis told reporters after holding an afternoon conference call with top-ranking legislators.

Davis would not detail the midstream cuts and other measures he will propose in coming weeks, but said they do not include tax increases.

He said, however, that he will not rule out tax increases or cuts to education when he presents his 2003-04 budget on Jan. 10 - setting the stage for a fight with Republican legislators who have said they will refuse to support higher taxes.

The problem is so immense that everyone must "set aside our ideological preconceptions" to fix it, Davis said.

Senate Republican leader Jim Brulte, of Rancho Cucamonga, stopped short of saying he would automatically fight any tax increases but said he is "very resistant to punishing taxpayers because this state has overspent."

Republicans blame Davis and the Democrat-controlled Legislature for failing to foresee budget problems and spending too freely during boom times.

"We have been telling everyone all along that we were headed for a fiscal train wreck. It is here," said Assembly GOP leader Dave Cox, of Fair Oaks.

Davis said California's budget woes stem largely from a slumping economy that failed to perk up as expected this year. Many states are facing budget deficits this year.

Legislative Analyst Elizabeth Hill last week projected that lawmakers here will be forced over the next 18 months to fill in a deficit equaling one quarter of the state general fund - and could face $12 billion to $16 billion shortfalls for at least six more years.

On Thursday, Davis said he told the Legislature's top four leaders that his economic advisers project that "the $21 billion number will go up."

Davis spoke by telephone for about 25 minutes Thursday with Brulte, Cox, Assembly Speaker Herb Wesson, D-Culver City, and Senate president Pro Tem John Burton, D-San Francisco.

Davis said he will issue an executive order to freeze state spending and plans to meet regularly with the "Big Five," which includes Davis and the top two legislative leaders from each chamber.

After the call, Burton said he would support tax increases. He also offered his own suggestions for cuts including shaving money from prisons by releasing some non-dangerous inmates early.

Davis will present his new budget plan shortly after he is sworn in for his second term.

Last year, Davis called a January emergency legislative session to cut more than $2 billion from the budget in mid year. He then signed a $98.9 billion 2002-03 budget on Sept. 5 - a record 67 days late - that cut, borrowed and raised revenues to fill a $23.6 billion gap.

Now, with the state facing an equally large problem, Davis and the Legislature have exhausted easier, one-time fixes such as tapping into future funds from a nationwide tobacco settlement.

Many Democrats have called for tax increases to fend off massive cuts to health, welfare and education programs.

"We are not going to balance this all on the backs of the poor, the blind, the aged and the disabled," Burton said.

Republicans already have vowed to hold back their votes - which are needed for the required two-thirds passage of a budget, tax increases and other fiscal matters - if the new budget plan includes tax hikes.

Davis last May proposed cigarette and vehicle registration tax increases but the plans were scrapped in a compromise to end a nearly two-month budget standoff.

This year, reaching the two-thirds threshold will be more difficult for Davis after the GOP gained two new seats in the Assembly and one more in the Senate.

On the Net: Find the LAO's budget reports at http://www.lao.ca.gov

-- The Associated Press

[Paulus Invictus]

The People's Republic of Kalifornia is toast, but they don't know it yet. They re-elected the worst gov in history (Boy! That's pretty bad since we had the RAT Moon Man Brown before). Now all CA cits will have to pay the piper, his family and the illegals that helped make CA into a tax disaster zone. I moved just in time!

[tubebender]

This year, reaching the two-thirds threshold will be more difficult for Davis after the GOP gained two new seats in the Assembly and likely one more in the Senate.

I have seen this mentioned only once before...

[BJungNan]

It is a drop in the bucket but there are projects just like it all over the state.

On long a stretch of beach city shoreline, ice-plant was planted in the late 40's to hold up the hillside. It's done quite well. The hillside is still there.

But - you guessed it - ice-plant is not native to California so they are going to rip it all out and replace it with...native weeds. The kind of weeds that were horrible at controling erosion and were the reason the ice-plant replaced them in the 40's.

The cost is in the millions.

A lot will be chopped. Health facilities, trauma centers. But you watch, the environmentalist pet projects will survive the budget cuts.

[evolved_rage]

Good picture of Gray. Notice the dead, soul-sucking eyes. I suspect ole Gray is the Prince of Darkness's own Lemonader...

[Seven_0]

$21 Billion Deficit. Cut $5 billion. That ought to do it.
Did Davis go to school in California?

[John Lenin]

I better start packingmy bags.

[VRW Conspirator]

...This will play well nationally and will show once again the Democrats as the party of taxing and spending.

My dad has been a life long registered Democrat, who happens to always vote Republican and conservative, calls the Democrat party, "The party of Death and Slavery". LOL.

[Robert357]

Nice article thanks.

Gov. Gray Davis said today the state's budget problems are even worse than previously reported, and he is calling the legislature into special session on Dec. 9 to chop $5 billion immediately.

On Thursday, Davis said he told the Legislature's top four leaders ``they could assume that the $21 billion number will go up.''

Washington State (a much smaller economy) is facing a $2 Billion shortfall for the next 2 year budget. We are bracing for a holly war of the liberal-got to give money to homeless, give more in wealfare, subsidize medical insurance for all, etc. groups against those that want better roads, good education for kids, and keeping criminals locked up.

I suspect that California will be even worse given societal expectations. That means to me that the traditional Democratic support base versus the base that has been heavily funding Davis campaign contributions will be at odds with each other.

I expect that the Democrats are going to feel absolutely betrayed by Davis and run to their State Legislators. They in turn are going to be told by State attorneys and by Bond Rating Agency folks that no, they have to pay certain bills and maintain certain kinds of commitments that they may no longer like.

Then I see the angry Democratic voters turnning to their two (powerless) democratic party federal senators.

This is going to be real interesting to watch, as when this all happens the sharks will start feeding on each other.

I really think that someone should start printing up "recall petitions" for most state elected democratic party officials. The feeling of betrayal could be so intense that the rank and file will have no one to blame but themselves and want to throw the rascals out.