CA: Governor OKs borrowing plan

Sac Bee ^ | 12/5/03 | AP

[NormsRevenge]

After saying for weeks there would be no option for putting a big bond measure on the spring ballot, Gov. Arnold Schwarzenegger quietly gave the green light Friday to a plan to borrow $10.7 billion without voter approval.

Last summer, the Legislature authorized the bond sale as part of the budget agreement signed by former Gov. Gray Davis. But taxpayer groups, as well as many Republican lawmakers, criticized the deal, saying borrowing of that magnitude should be approved by voters.

[NormsRevenge]

.

[xrp]

That's what they get for electing a RINO.

[Torie]

The time is coming soon when it will emerge whether Arnold is an enabler or a reformer. He needs to make it clear he is going the intiative route if laws are not passed that reign in the instincts of a legislature that is highly unprepresentative of the state on inter alia fiscal matters.

[Southack]

Yawn. The press often acts as though Conservatives have betrayed their fellow Conservatives, only to be proved wrong after the dust settles.

Lets see what gets put on the bond measure for the voters to approve before swallowing such stories as this one from a liberal rag...

[Torie]

Too early for that verdict. It may be just a move of a pawn, or a move to buy time, for some other "solution." The illegal debt cannot all be retired in one year absent Draconian actions, that while meritorious, simply are not going to happen. McClintock lost, so such actions will not even hit the ballot for an up or down vote. And so it goes.

[Torie]

I am sure we disagree on something, somewhere. I am not sure what that is. :)

[NormsRevenge]

Let's not drag this thread down the same road that so many have gone. Thanks

This is a very sad situation that we all find ourselves in as California is the albatross around our nation's chance to have a robust recovery for all in the near future.

The decision by the demRats to continue to fight & obstruct the will of the people is despicable and will be addressed in November 2004.

Until those elections results are in, a lot of folks will be running around stabbing each other and wasting the energy they need to be directing at the real culprits in this whole sordid mess.

[CHUCKfromCAL]

The "hate" Arnold crowd is sure not giving him any slack. He is just completing his third week in office and they are already at his throat.

They let Davis screw California up for five years and they still wanted him to stay longer - but they won't give Arnold a month.

[Ernest_at_the_Beach]

I watched a portion of the committee meeting chaired by the Long Beach Democrat gal today as the Governors plan for the Bond initiative was presented to the committee and the Demoncrats acted as though they had till Christmas of 2004 to make decisions on what to do!

[Kevin Curry]

Poor Arnie. *Sniff*

[NormsRevenge]

broad brushes usually splash paint all over everyone. Thanks but "hate" is a bit strong , imo, of how most folks feel these days.

[William Tell]

CHUCKfromCAL said: "They let Davis screw California up for five years and they still wanted him to stay longer - but they won't give Arnold a month."

There may be many who voted for Arnold who "let" Davis screw Kalifornia, but I doubt that there are many who voted for McClintock who let Davis do anything.

As for giving Arnold a month, why do you ask that from us? Is there some "secret sauce" which is going to make borrowing $15 billion suddenly palatable?

I was in support of challenging the legality of Davis' "deficit bonds" and hoped that the voters would reject a replacement bond issue if it came to that.

Now that Arnold is going down a similar track, I support the challenging of the legality of the "deficit bonds" and hope that voters will reject a replacement bond issue.

The backlash which has caused the legislature to repeal the drivers licenses for illegals was probably going to happen without Arnold. The same might have been true of the car taxes. Several more months of calamitously depressed auto sales might have done the trick.

The fiscal train wreck which is Kalifornia continues down the track. Arnold is "driving" but not much else has changed.

[marsh2]

Reinstating reduced VLF without continuing backfill payments to counties for lost revenue is causing a crisis in County government. Without immediate action by legislators and Governor, cities and counties will receive significantly reduced Vehicle License Fee Revenues beginning December 10, 2003. Payments could be reduced by more than two-thirds or more than $300 million per month.

VLF payments constitute an average of between 17 and 25 percent of city and county general purpose revenues respectively. The General fund is the primary revenue for the Sheriff, D.A., Fire, Assessor, Auditor, Clerk, Recorder, Probation and Administration. Another 25% cut in our General Fund will endanger public health and safety.

Governor Schwarzenegger and the Legislature must keep the promise to backfill revenues that the State has diverted from the Counties and cities.

[FirstPrinciple]

The secret sauce is the tax increase coming soon to pay off the bond with the hefty interest.

[Lancey Howard]

The people who were bitter that Tom lost, don't seem to be acting level-headedly when it comes to Arnie.

Yeah, all those people who were sure Tom would win are bitter.
What are you smoking tonight?

[Sabertooth]

Lets see what gets put on the bond measure for the voters to approve before swallowing such stories as this one from a liberal rag...

The story's from the AP. Schwarzenegger's green lighting Davis' $10.7 billion dollar bond scheme to bypass the voters.

It's as illegal now as when Davis tried it.

It's in violation of the California Constitution.

After saying for weeks there would be no option for putting a big bond measure on the spring ballot, Gov. Arnold Schwarzenegger quietly gave the green light Friday to a plan to borrow $10.7 billion without voter approval.

Last summer, the Legislature authorized the bond sale as part of the budget agreement signed by former Gov. Gray Davis. But taxpayer groups, as well as many Republican lawmakers, criticized the deal, saying borrowing of that magnitude should be approved by voters.

One group, the Pacific Legal Foundation, filed a lawsuit in September, arguing the proposal to sell $10.7 billion of deficit-financing bonds should be ruled invalid because of provisions in the California Constitution that prevents the Legislature from taking on more than $300,000 in long-term debt without approval of the voters.

More on the Davis' illegal $10.7 billion bond that Schwarzenegger is trying to resurrect...

Schwarzenegger's bond plan would replace a $10.7 billion bond issuance by former Gov. Gray Davis that's being contested in court, and would shore up the state's spending plan through June 2005. His finance director, Donna Arduin, told state lawmakers last week that Schwarzenegger's $15 billion plan and the $10.7 billion in legally questionable debt back each other up: one or the other is necessary, but if both fail the state will run out of money by the end of the fiscal year in June.

The $15 billion deal is vital to Schwarzenegger's budget plans, which also includes $3.8 billion of cuts in the budgets for this and next year and a spending cap.

"If we don't have that, and the $10.7 billion bond falls through in court, then we have no money and then we have to make cuts that are disastrous," Schwarzenegger said.
Schwarzenegger Says Bond Plan Is State's Only Hope
Governor Says He Has No Backup Plan
NBC San Diego.com - December 2nd, 2003

But on the campaign trail, Schwarzenegger said...

We need to get our spending under control. I support a constitutional limit on annual spending increases, a "rainy day" reserve fund and an unambiguous constitutional requirement that the state pass a balanced budget so that California never finds itself in this mess again. I will also restructure our inherited debt, estimated at between $12 and $20 billion - a very wide range that is itself another indicator of how difficult it has become to understand just what is going on in Sacramento. This includes the unprecedented $10.7 billion deficit bond and other borrowing in the current budget.
Arnold Schwarzenegger - Schwarzenegger Campaign website

Schwarzenegger promised to control spending without raising taxes, but most of his efforts to control the budget shortfall revolve around borrowing, which only mean higher taxes later.

If a Schwarzenegger bond measure ever does reach the voters, it should be treated like any other... with a no vote.

[Ernest_at_the_Beach]

I watched the committee meeting where some of the democrats wanted this plan to go forward.

They were in no hurry to vote on the Governors plan that had just been presented to them.

[Southack]

Frankly, the real political hat trick would be to break the budget down into small components and put every tiny component onto the statewide ballot. Let the voters approve what they consider vital, and let them say no to the rest.

California has "direct democracy" available as an option. Bypass the California legislature and use that option. Let the voters choose their level of taxation and their preferred level of spending on the same ballot each year.

As for Arnold, lets wait to see what he puts on the ballot before deeming him a traitor. It's also reasonable to give him some small amount of leeway in how he handles the enormous problems that are now in his lap. A one-time bond issuance isn't out of the question if he simultaneously shows how such borrowing won't be required in the future due to systematic budget cuts.

That he can't swing an axe that large all in his first 6 weeks in office shouldn't really be the full measure of the man...