Cuts In State Budget On The Table (Arnold Vs The Beast)

Los Angeles Times ^ | 11/14/03 | Evan Halper, Jeffrey L. Rabin and Nancy Vogel

[goldstategop]

For Schwarzenegger, sources said, the closed-door sessions became another lesson in just how limited his options will be in addressing the budget crisis if he is to keep his campaign promises to repeal a recent tripling of the state vehicle license fee, avoid tax increases and still not disturb education programs long championed by the governor-elect.

The sessions took place only hours after another private meeting in which about a dozen economists told Arduin that California's gradually recovering economy is unlikely to grow quickly enough over the next 18 months to dig the state out of its continuing fiscal crisis.

"It's not enough to solve the problem by any measure," said one meeting participant.

Short of spending cuts or tax increases, the growing consensus among budget experts in the Capitol is that Schwarzenegger's only way out will be to ask state lawmakers to place a deficit bond proposal of $20 billion or more on the March ballot, coupled with a constitutional spending cap to solve the structural imbalance between spending and tax collections.

Schwarzenegger spokesman H.D. Palmer confirmed the Wednesday meetings with the new governor and his fiscal staff in Sacramento, but declined to say what specifics had been discussed.

"It's very focused, very detailed, very thorough discussions about aspects of the state budget and the state fiscal problem," Palmer said, adding that Schwarzenegger also has met with fiscal advisors in Southern California.

"In terms of having something locked down and ready to go, we are not there yet," he said.

[goldstategop]

There are no good options except to cut spending, dedicate a specific percentage of one of our existing taxes to pay off the debt, to roll over the rest of it, and put in place a constitutional spending limit that prevents the state government from spending more than it takes in in both good and bad times. Arnold vs The Beast. The Governator has a lot of work to do in turning the state around and its challenge that would daunt any man in any other state than California. It takes on an added importance here thanks to the power of the entrenched tax and spending lobby. In short, the forces that have brought the Golden State to the brink of fiscal oblivion are not going to easily give up their power to continue business as usual. What remains to be seen is whether Arnold can bring them to heel.

[gunnedah]

This is what government regulations are doing to the economy. Their insatiable appetite for tax money to provide for everything under the sun is destroying Americas economy and eventually all businesses will locate off shore.
All government positions should be cut in half across the board!

[expatpat]

My solution: Go back to 1999, or whatever, and use that budget as a baseline budget for the current year, adding a little here and there to specific line-items, as necessary.

[DoctorZIn]

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[johnb838]

We do pretty well with a balanced budget requirement here in Texas. We still have to keep a close eye on the weasels, they are constantly trying to find a way to run a deficit and call it something else. I fear Cali doesn't have enough people on the bandwagon to make it work, but what else do you have to do but try?

[johnb838]

I heard a suggestion that the best thing Arnold could do for the California economy is make Terminator IV, V, VI, VII and VIII, and donate the proceeds to the budget.