8 Ways to Solve the Budget Crisis

SF Gate (Chronicle) ^ | January 27th, 2003 | Adam Sparks

[sfwarrior]

How bad is California's $30 billion budget disaster? You decide.

-- State government now spends a larger portion of personal income than at any time in its history.

-- General fund spending grew 30 percent in the last three years, while California’s population grew 5 percent.

-- California now spends nearly $3,000 for every man, woman and child in the state, compared to $1,800 in Arizona.

-- The state is now spending over $1 million an hour more than it is taking in.

The Democrat-controlled Legislature has refused to make structural changes such as spending caps, eliminating or consolidating departments. There are some agencies that could be closed without anyone noticing. The state legislators have now proposed tripling the car tax, increasing the state sales tax by 16 percent, a bevy of bond proposals and boosting the upper income tax brackets to historic highs. Additionally, through the new bonds, Governor Gray Davis proposes to borrow billions of dollars from future taxpayers to pay for his mistakes. The fun is just beginning.

Increasing bonded indebtedness is almost always a bad bet. Depending on the type of debt and the repayment period, interest costs alone usually exceed the amount of proceeds generated by the sale of the bonds. A school bond passed this last November is a...

[sfwarrior]

The legislature will continue the taxpayer whippings until the moral improves: Reality check. The State of Arizona, on our Southeastern border, offers a good comparison for studying governmental management- or lack of it. Arizona is all desert, yet there's no water shortage. They have the highest per capita electrical usage, yet there is no energy crisis, nor even a shortage. Their population grew 3 times faster than California during the past decade and yet there is no housing shortage. They spend less per pupil, yet they significantly outperform our students in academic achievement. What's the difference? A Republican legislature and governor. Politicians should be fiscal watchdogs and administrators that can also care for their people without breaking the bank. Our legislature has been chasing out businesses from California. Where do you think much of Arizona's population growth came from?

[sfwarrior]

ping

[Toidylop]

General fund spending grew 30 percent in the last three years, while California’s population grew 5 percent

Try to do that in any private industry!!!

[Carry_Okie]

A Republican legislature and governor.

Perhaps historically, but the current governor is Janet Napoletano, a liberal Democrat.

[expatpat]

Wow! Good sense from SF Gate!

[tubebender]

Thank you for a very well written article SFW. We need to bump this through out the day One of my fears is that Silly Brown is not at the end of his ability to rape Calif taxpayers.

BOOKMARKED...

[tubebender]

PING..

[tom h]

The facts about California’s budget problem:

- Budget when Gray Davis took office in 1999: $53 billion

- Budget needs today (FY 2003): $100 billion

- Tax receipts, FY 2003 (forecast): $70 billion

- Growth during Davis’ term: 100% or 20% per year. Note that upon Davis’ election, the Democrats finally had control of all three branches of California’s government for the first time in 40 years.

- Had the budget grown consistent with inflation and the increase in population, the budget would be $65 billion (21% increase over four years, or 5% per year) and the surplus would be $5 billion.

If only the California press would publish these facts on the front page, the voters would realize that unconstrainted Democrats will go on drunken spending sprees worse than Donald Trump's wives!

[tubebender]

Interesting article...