CA: Governor teeters on edge of deficit abyss

LA Times ^ | 11/7/07 | Evan Halper

[NormsRevenge]

SACRAMENTO -- Gov. Arnold Schwarzenegger swept into office in 2003 promising to end the state's pattern of "crazy deficit spending," cut up the government credit cards for good and force the state to finally live within its means.

So much for that.

Experts say the state's spending habits are no more restrained than they were when Schwarzenegger arrived in Sacramento four years ago. The budget has grown by a staggering 40%. Costly programs have been launched.

And spending has continued to outpace tax receipts year after year -- even years when housing and tech booms led to cash windfalls.

Now the governor finds himself in a predicament similar to that of his predecessor, Democrat Gray Davis: staring at a crippling budget shortfall that threatens to overshadow all other business in the Capitol and tarnish his political legacy.

On Monday, Schwarzenegger ordered all state agencies to prepare plans to cut spending across the board by 10% next year. Education, transportation and healthcare will all be affected. Some programs face elimination. Layoffs may loom. The state's budget shortfall, thanks largely to the troubled housing market, has ballooned from a few billion dollars projected at the beginning of the year to $10 billion.

Experts are not surprised.

"There has been lots of talk and lots of gimmicks, but none of the state's underlying budget problems have been dealt with," said Ryan Ratcliff, an economist at the UCLA Anderson Forecast. "Even in the middle of a revenue boom, we kept spending more than we take in."

Candidate Schwarzenegger condemned such fiscal policy in 2003. He challenged voters frustrated with the state's mismanagement of the budget to oust Davis. Now, on his watch, the same problems are creeping back.

[NormsRevenge]

[Grunthor]

“CA: Governor teeters on edge of deficit abyss”

Someone give him a push.

[Rennes Templar]

As Gomer Pyle used to say, “Suh-prise, suh-prise, suh-prise”

[Mad_Tom_Rackham]

ScwartzenKennedy has been a colossal failure of epic magnitude. Looks like style now wins over substance in the once great state of California. I only hope that I can get out before the inevitable train wreck. Just yesterday, Oregon (or was it Washington?) rejected a tax on “property transfers”. Wanna bet against we Californians having this rammed up our asses next year?

[cherry]

this is what the police, the firemen, the teachers, the bus drivers, the jail keepers, the probation officiers, etc, etc have wrought .....

you can't keep giving these govt workers top wages and top pensions and benefits and expect that money will be there....

.

[freekitty]

Good old Arnold; the “Great White Hope” is sending CA down the tubes.

[NormsRevenge]

Unfunded liabilities haven’t even kicked in yet either..

[samadams2000]

Can we NOW please fire one out of every 4 state employees? And then begin the REAL cutting?

[NormsRevenge]

Can we NOW please fire one out of every 4 state employees? And then begin the REAL cutting?

—

Rack ‘em. ;-)

We’ll see,, a while back, they had a hiring freeze in place, but not for long after GuBBY came on the scene.

[rabscuttle385]

Just yesterday, Oregon (or was it Washington?) rejected a tax on “property transfers”.

What the hell is a...tax on property transfers???

[goldstategop]

They describe Arnold as a "fiscal conservative" even though state spending grew 40% under his watch? The MSM is good for laughs.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[goldstategop]

That was North Carolina. Americans are fed up with high taxes and irresponsible spending. The Democrats ignore the mood next year at their peril.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Non-Sequitur]

And Schwarzenegger’s solution to the problem will no doubt be run for the Senate.

[RetiredArmy]

Arnie, the Marxist Dimocrat, married to a Marxist Dimocrat, saying he is a RINO republican. Go figure why his government is running up the tab. GWB did the same thing, and he paraded around as a conservative.

[goldstategop]

He will recommend more borrowing. The responsible thing to do would be to cut spending, institute a spending cap and put aside money in a rainy state fund. Instead, he spent like there was no tomorrow, imposed crippling regulations on California's economy and just borrowed to the max from Wall Street. Finally, the chicken are come home to roost. To be sure, the Democrats share the blame but the responsibility for California's fiscal mess is Arnold, who has no idea on how to get the state out of it.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[dearolddad]

What the hell is a...tax on property transfers???

I'd call it a sales tax applied when real estate is sold.

[Uncle Hal]

On top of these huge deficits Arnold and Dem's are on the verge of enacting a gigantic health care scheme that would cost untold billions. The credit card is about maxed out.

[TenthAmendmentChampion]

We have a virtual sales tax on property. The state confiscates 6% of the value of the property against future property tax due. You have to apply for a refund of the money in the following tax year. The net effect is that prices go up, up, up.

[TenthAmendmentChampion]

They are trying to put it on the ballot as a proposition now. I don’t think they can pass it through the legislature.

[NormsRevenge]

CA:Health reform negotiations moving forward in state capital (BOHICA! POST(al)-Partisanship Alert!) ^

http://www.freerepublic.com/focus/f-news/1923133/posts