Free Republic

Our view: California's fiscal condition even worse than it appears It wasn't supposed to be like this. By this stage in the Schwarzenegger administration the budget was to be balanced and state spending under control. That the "Governator," whose starring role in epic films was his primary qualification, squandered an epic opportunity for reform can't be denied, but there's plenty of blame to go around. In case you've been enjoying your summer instead of following state politics, here's an update: The state missed the June 30 deadline for passing its $100 billion-plus budget, and all sides ---- the governor and...

Gov. Schwarzenegger came to office in 2003 promising to "blow up the boxes" and offering a vaguely supply-side agenda. On Monday, he announced his annual May revision of his fiscal year 2007-08 budget, and nary a blown-up box could be seen. Rather, the governor has decided to keep most of the bloated state budget's boxes intact, and thus mollify the moderate middle of the electorate. The governor is anticipating that next year's General Fund -- funded by income, corporate and sales taxes ---- will be $103.8 billion, up slightly from earlier estimates. This year's General Fund was about $102 billion,...

Governor's spending plan counts on approval of new tribal deals, but Democrats want changes. --- TEMECULA-State lawmakers are warning Gov. Arnold Schwarzenegger not to pin his hopes of balancing the state budget on a massive expansion of Indian casino gambling. The admonishment, delivered last week at the state's largest tribal gambling convention, offers a potential preview of a second blistering legislative battle over agreements that would allow five of the state's richest tribes to add up to 22,500 slot machines. Schwarzenegger negotiated compacts last year for casino expansions -- of between 3,000 and 5,500 new slot machines each -- for...

SACRAMENTO — Gov. Arnold Schwarzenegger described his agenda this week as a litany of things all Californians want: affordable health insurance, clean air, snarl-free highways. But he may have to battle his fellow Republicans to get them. Outlining that vision ... , Schwarzenegger was interrupted 21 times by applause, nearly all of it from Democrats. --snip-- Republicans were noticeably less enthusiastic, and afterward expressed deep concern about the huge amount of money the governor wants to borrow, and his willingness to levy businesses, to achieve his goals. They are a minority party in the Legislature, but Republicans will be needed...

Last week, the governor signed a $131 billion budget amid a chorus of bipartisan congratulations. With state revenues higher than expected, and the governor positioning himself for a re-election bid in the fall, there was relatively little of the acrimonious negotiations that normally accompany the hammering-out of the state's spending plan. But the governor did do a bit of trimming before signing his budget deal. He used his line-item veto authority to cut $112 million in state funds from the budget. The state lost out on another $63 million in federal matching funds that would have accompanied the higher spending...

Currently,the State of New Jersey is in budget crisis. Almost alone among the 50 other states of the Union, they are running in the red instead of having a budget surplus. Why? Aside from the previous reign of Chrissie Whitman, who radically cut state taxes WITHOUT a concomitant reduction in state expenditures, AND reduced the government employee contributions towards the pension system; the succeeding reign of spendthrift Democrat McGreevey, who INCREASED state payroll and expenditures without increasing revenues; and the following reign of Senator Codey which pretty much mirrored McGreevey's pattern, New Jersey now is in fiscal crisis. To understand...

RICHMOND, June 28 -- The 2006 General Assembly gave final approval to the state budget and went home Wednesday, leaving behind a first-year governor who presided over the worst stalemate in the legislature's history while failing to make good on his promise to ease traffic congestion for Virginians. Gov. Timothy M. Kaine (D) confronted an issue that has bedeviled state leaders for two decades: how to finance billions of dollars in road and transit construction. His plan for tax increases to finance those improvements, presented six days into his term, stalled after he misread the resolve of his adversaries and...

SACRAMENTO State lawmakers were poised to approve a $130.9 billion spending plan Tuesday that uses a tax windfall to fund one of the largest-ever increases for California schools and sets aside billions to pay down debt and build up reserves. Leaders of both parties say they expect it to pass with the required two-thirds vote, setting the stage for California's first on-time budget in six years. Gov. Arnold Schwarzenegger's office said if it passes, officials will work around the clock to complete the governor's line-item review of the budget bill in time for him to sign it before midnight Friday,...

<p>SACRAMENTO – The Legislature is scheduled to vote tonight on a $131 billion state budget that contains a 10 percent boost in school funding after legislative leaders and the governor agreed on the sweeping plan yesterday.</p> <p>Gov. Arnold Schwarzenegger not only gets much of what he wanted in the spending proposal, but as he runs for re-election he also might get a rare on-time budget, one that is in place before the new fiscal year begins Saturday.</p>

After early hopes that California might have its first on-time budget in 20 years, lawmakers Wednesday failed to bridge differences over funding health care for the children of illegal immigrants and settle on a plan to pay down state debt. Lawmakers from both parties said they plan to continue negotiating Thursday - the constitutional deadline to pass the budget - but no vote on the proposed $131 billion spending plan is scheduled. Assembly Speaker Fabian Nunez, D-Los Angeles, criticized Republicans for the delay, saying the party had gone looking for reasons to hold up a vote. Republicans' attempt to block...

That's the assessment today of Assembly Speaker Fabian Nunez (D-LA) on the chances of a budget vote tomorrow. Nunez now says, barring a late breaking deal with Republicans, he will not bring the new state budget up on the Assembly floor. That would result in the 20th straight year of no new budget by the state constitutional deadline of June 15. In a briefing with reporters, Speaker Nunez essentially accused Republicans of trying to find something they don't like in the conference committee's $101 billion dollar spending plan for 2006-07. "No one can say this is not a responsible budget,"...

SACRAMENTO – A two-house committee approved a new state budget of roughly $131 billion yesterday, setting the stage for Senate and Assembly votes this week that could produce the first on-time budget in two decades. But Democrats sent the new spending plan to the legislative floors despite opposition from Republicans, with the apparent hope that Gov. Arnold Schwarzenegger would help negotiate agreements on remaining differences. Republican legislators, whose votes are needed for the two-thirds approval of both houses required to pass a budget, made it clear that they want changes made in the plan that was approved by the committee....

Gov. Arnold Schwarzenegger's proposed $131.1 billion state budget won praise Monday from the nonpartisan legislative analyst, even as she warned that a deal the governor reached with teachers could increase debt in future years. The analysis came as Democratic lawmakers voiced concerns about some aspects of the spending plan for the fiscal year that begins July 1. Among other issues, they questioned the amount of money set aside for public transit and whether $400 million Schwarzenegger proposed for bird flu preparations might better be spent on welfare increases. Still, Democrats said a tax windfall estimated at $7.5 billion has led...

A multibillion dollar tax windfall has eased the strain of California's perennial state budget debate and handed Gov. Arnold Schwarzenegger a chance to buy off Democrat and Republican critics as he heads into his re-election campaign. Stock gains, home sales, business profits and taxes on rising gas prices are expected to bring in revenue at least $5 billion above forecasts from just two months ago. The money already has allowed the Schwarzenegger administration to pledge that it will give more to public education and appease the state's teachers union, which has been critical of the governor's spending. "It really helps...

SACRAMENTO (AP) - You may have a better chance of bumping into a legislator in Monterey, Napa or Simi Valley than at the state Capitol this week. Three of the Legislature's four party caucuses are meeting away from Sacramento to discuss the state budget, Gov. Arnold Schwarzenegger's public works plan and other issues. Assembly Democrats are going to Monterey for three days starting Monday. Their Republican counterparts will make a three-day pilgrimage to the Ronald Reagan library in Simi Valley, arriving in time to have chocolate cake on Monday as part of the celebration of the late president's 95th birthday....

SACRAMENTO (AP) - California lawmakers won't have to worry about a multibillion budget deficit next year for the first time in four years thanks to an unexpected jump in tax income and ongoing spending cuts, according to a report released Wednesday. But Legislative Analyst Elizabeth Hill tempered the good news with a warning that the state has not solved its long-term spending problems and warned that big deficits will return in 2007-2008 unless additional steps are taken. "The state has to keep its foot on the gas peddle of getting its fiscal house in order," Hill said at a news...

Everyone agrees that California has a chronic fiscal problem - five straight years of deficit budgets being graphic proof. The state, which had experienced serious budget problems in the early 1990s, thanks to a severe recession, was recovering nicely until 2000, when then-Gov. Gray Davis and the Legislature blew most of a one-time tax windfall on billions of dollars in tax cuts and new spending. --snip-- The budget crisis eventually cost Democrat Davis his job and propelled Republican Arnold Schwarzenegger into the governorship on his promise to clean up the mess in Sacramento. But while Schwarzenegger has made some incremental...

Kathleen Babineaux Blanco On January 12, 2004, Kathleen Babineaux Blanco became the first woman to serve as governor of Louisiana. In her long, distinguished career, Governor Blanco has served the people with a vision of creating a new Louisiana, filled with hope and opportunity for all citizens. As Governor, her top priorities include: providing affordable, accessible healthcare, improving the state’s education system, and creating a strong and vibrant economy. In her inaugural address, Governor Blanco outlined her priorities as governor: “We face important challenges in this new century: expanding our economy and creating quality jobs; building an effective health care...

SACRAMENTO – After being pounded by television ads and seeing his popularity plunge, Gov. Arnold Schwarzenegger basked in some rare good news yesterday as he signed a new $117.4 billion state budget. The budget is the earliest in five years, has the support of Democratic legislative leaders who joined the governor at the signing ceremony and received an endorsement from Wall Street with a bond-rating upgrade for the state. The governor and the leaders, echoing remarks last week, hope the bipartisan momentum will lead to a compromise avoiding an all-out war over the governor's "Year of Reform" initiatives on the...

The politicians are poised to raise your taxes again. By voting for anti-tax candidates in the GOP primary, you can send a message: We insist that state government do better. In all likelihood, you're not going to bother voting June 14 in either the Republican or Democratic Party primaries. Like most of your fellow citizens, you probably figure the top spots -- Jerry Kilgore for the GOP and Tim Kaine for the Demos -- are a lock. And you haven't been paying very close attention to the other races, so you really don't care who gets nominated. That would be...