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"You can't cut the whole $15 billion," Schwarzenegger said, referring to the gaping hole in a $102-billion general fund. "You'd have to severely cut into education, which I don't think is the right thing. You would severely cut into health care, which is not the right thing to do. You would severely have to cut into prisons, and we can't do that." A good Republican trade-off for a one-cent-on-the-dollar sales tax increase for three years, he asserted, would be a long-term budget fix: A constitutional amendment requiring the state to transfer 3% of its annual revenue to a rainy-day fund...

Much has been written about the August budget put forward by Governor Schwarzenegger last week. At his press conference announcing his plan, the Governor said that his budget plan was "a fiscally responsible compromise" and will "put our state on the road to fiscal sanity." In reality, after spending some time looking it over, and discussing it with state policy experts .., the Governor's proposal will do nothing of the sort. It includes more borrowing and higher taxes on Californians... The Governor said that more borrowing in the budget is "not a wise idea and I will not do that."...

Not surprisingly, as has been previously discussed on New West Notes, Republican legislators have no intention of voting for fees or taxes or whatever one wants to call them on businesses and medical providers to finance universal health care in California. That was reported first yesterday on New West Notes after Governor Arnold Schwarzenegger and Democratic and Republican legislative leaders held their “Big 5” meeting. Meanwhile, the Census Bureau reports that 20% of Californians have no health insurance. When they get sick and get health care, we nonetheless pay for it through emergency rooms. If there is to be a...

Where I live, instead of bringing mail to my house, the United States Postal Service has set up one of those pedestals with a box lock box with twelve slots where my incoming mail is deposited. So I have to walk about 100 feet from my front door to retrieve my mail. I am sure this is done so that the mail carrier can zip up in their truck and efficiently deal with mail delivery, and zoom off again. Of course, any efficiency in the process for me is offset by the fact that I typically only bother to check...

SACRAMENTO -- California's 51-day budget impasse ended today as Republicans in the state Senate extracted enough concessions from Gov. Arnold Schwarzenegger and Democratic lawmakers to allow the $145-billion spending plan to pass. The agreement is almost identical to the plan passed by the state Assembly on July 20. To overcome the GOP objections in the Senate, Schwarzenegger had agreed weeks ago to use his veto pen to eliminate the $700-million deficit with which the state is expected to end the fiscal year June 30, 2008.

Arnold Schwarzenegger became the first governor in memory -- at least going back to Pat Brown -- to parachute into the district of a legislator of his own party and exhort citizens to browbeat their representative into voting his way.... Senate Republicans assert that's not enough. "They're phony reductions," says Sen. Tom McClintock (R-Thousand Oaks). He cites one example: Schwarzenegger would "save" $160 million by delaying a Medi-Cal payment for one month, shoving it into the next fiscal year. He adds: "What the governor says and what the governor does are two distinctively different things."

Arnold's Health Flop After Arnold Schwarzenegger unveiled his universal health-care plan for California in January, almost everyone was laying down palms in Sacramento. Here was a Republican Governor putting aside political squabbling and "doing big things that Washington has failed to do," as Time magazine put it. What a change seven months later, with the plan on the cusp of collapse. There's a lesson here about health-care "bipartisanship" when it's merely a cover for bad policy. The California legislature is now in the second month of the fiscal year without a budget. Deadlocks are routine because the state requires a...

The chances of another maverick joining Maldonado appear to be fading. Sen. Jeff Denham, R-Atwater, has been specifically targeted because of his being somewhat less conservative than other senators, but he's reacted to the pressure -- including a Democratic Party threat of a recall campaign -- by becoming more adamant. If, as the Field Poll indicates, public pressure is unlikely to crack the GOP solidarity in the Senate, the question now is whether Democrats will feel enough pressure from their constituent groups that are dependent on state financing to give ground on the Jerry Brown demand. This week's rhetorical maneuvers...

In a move that would diminish the clout of his fellow Republicans in the Legislature, Gov. Arnold Schwarzenegger suggested Monday that he could support eliminating the two-thirds voting requirement for passing future state budgets. "Everyone now has come to the conclusion -- all the leaders -- that we must work, as soon as the budget is over, work on a system that allows us to have a budget on time," the governor said. "If that means we should go and shoot for, as some suggested, a simple majority to pass the budget rather than a two-thirds vote, maybe that's the...

As the stalemate over the budget continues into its seventh week, taxpayers are troubled over mischaracterizations in the mainstream media about who is responsible. The negative attention is focused on Senate Republicans who are being portrayed as the obstructionists. But viewed fairly, their position is both reasonable and mainstream. They want to see a balanced budget -- rather than saddle future generations with a massive debt load – and they want to ensure that the $42 billion dollars of bond financing for infrastructure just passed by voters last November is actually spent on infrastructure. Moreover, the position which these Senators...

He accused GOP lawmakers of continuing to withhold their votes, even after all their demands related to the budget had been met, in hopes of extracting other policy concessions. "All of a sudden, now we've got to work on this, we've got to work on that," Schwarzenegger said. "So they are adding things. We say today, don't keep adding things. You are hurting people. People in California are suffering. Lay off. Pass the budget." Though Schwarzenegger didn't mention Cogdill by name, he did single out Cogdill's fellow GOP holdout, Sen. Jeff Denham, a Republican whose district includes nearby Merced. Denham,...