Posted on 11/08/2009 9:19:57 AM PST by SmithL
Mike Genest, who announced recently that he's resigning as Gov. Arnold Schwarzenegger's budget director, deserves a respite after four years of dealing with the state's chronic fiscal crisis.
Genest is a genuinely nice guy,...
His imminent departure, however, is a reminder that as Schwarzenegger settles on what he'll propose on state spending two months hence, California is still speeding toward a train wreck.
The Legislature's budget analyst, Mac Taylor, will issue his appraisal soon. He'll probably tell his bosses what they don't want to hear – that things are getting worse, not better.
State revenues are running billions of dollars below even the pessimistic estimates on which the current version of the budget was based. Several of the gimmicks and unspecific spending cuts in the budget, as insiders knew at the time, aren't bearing as much financial fruit as advertised. Adverse court decisions are torpedoing other cuts. Federal bailout money is running out. And the economy remains moribund, with unemployment likely to rise.
An educated estimate is that the 2009-2010 budget is about $7 billion out of whack and that the 2010- 2011 version will have at least a $10 billion gap between income and outgo. That's why Capitol insiders are now talking about a $15 billion to $20 billion problem that Schwarzenegger and lawmakers will confront when the Legislature reconvenes in January.
The options for dealing with another big deficit, meanwhile, are shrinking.
Schwarzenegger and lawmakers already have raised income, sales and car taxes temporarily, and the heat that a few Republicans took for voting for new levies, including a recall campaign against one, likely takes more tax hikes off the table.
At the same time, however, spending advocates, such as public employee unions, are ramping up pressure on Democrats to resist more cuts.
(Excerpt) Read more at sacbee.com ...
Genest is a genuinely nice guy,...
—
Anybody ever think we don’t need ‘nice’ guys in Gubamint?
Some of the dems were hardly ‘nice’ to their voters and staff.. what’s up with nice , Willie?
senile ol’ fart in a 3,ooo dollar 3-piece suit..
from whence the Willie?
WILLIE BROWN: Don’t deal out old political hand Dianne
http://www.freerepublic.com/focus/f-news/2381555/posts
why anyone waste any time listening to this bunko artist, passing himself off as a guru of politico.,, lol. go pull words, or something, it’ll be more productive. ;-)
i wouldn’t be buying cal bonds.
Genest's distinction is that he has been on the bridge of the S.S. California as it has swirled toward the drain since the 90s. Prior to Arnold Genest was the chief fiscal consultant under Senate Republican Leader Jim Brulte. He presided over the earliest "get out of town budget" compromises under Wilson and Davis that eventually became SOP for Schwarzenegger - squeeze, borrow, and shuffle to make it allegedly "balance" during stalemates. He and a handful of other budget staffers are the reason we are in this mess today.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.