Schwarzenegger says he wants to borrow up to $15 billion; bond issue needs voter OK

AP Wire (breaking on direct feed) | November 18, 2003 | TOM CHORNEAU

[NYer]

SACRAMENTO, Calif. (AP) _ Gov. Arnold Schwarzenegger said Tuesday that he wants the state to ease its budget woes by borrowing up to $15 billion through a bond issue.

He said he wants the Legislature _ which was to go into special session later in the day _ to bring the question before voters by putting a bond issue measure on the March ballot.

In his first news conference since taking office Monday, the Republican governor also said he wants lawmakers to offer voters a state spending limit that would ``never again to allow politicians to overspend'' and a government reform package that will ``allow sunshine into the darkest corner of state government.'' ``Write and call your legislators and let them know that you want action, and you want action now,'' he told voters.

He said lawmakers should also find an additional $11 billion in savings in the workers' compensation system and find a way to compensate local governments for the approximately $4 billion they lost when he rolled back a tripling of the vehicle license fee.

Reversing the unpopular car tax increase was Schwarzenegger's first move after he was sworn in Monday. He also called lawmakers into the special session to deal with the budget, workers' compensation and a new law allowing illegal immigrants to get drivers' licenses, which the governor opposes. Political observers agree that keeping his pledge to fix the state's beleaguered economy will be a formidable task for the political newcomer, who faces a budget deficit he estimates at more than $24 billion and a business climate he has cast as the nation's worst.

Despite his overwhelming win in the Oct. 7 recall election that ousted Gray Davis, Schwarzenegger also faces a Democrat-dominated Legislature that may not grant his wishes. ``He's got a tough challenge on his hands,'' said former Republican governor George Deukmejian, who attended Schwarzenegger's swearing-in ceremony Monday. ``I don't envy him.''

With his wife, Maria Shriver, holding a Bible, Schwarzenegger, 56, took the oath of office from California's chief justice in a short ceremony on the steps of the state Capitol. An immigrant from Austria who arrived in the United States 35 years ago as a body builder dreaming of fame and fortune, Schwarzenegger invoked former Presidents John F. Kennedy and Ronald Reagan and called himself ``an idealist without illusions.'' ``Perhaps some think this is fanciful or poetic, but to an immigrant like me, who, as a boy, saw Soviet tanks rolling through the streets of Austria, to someone like me who came here with absolutely nothing and gained absolutely everything, it is not fanciful to see this state as a golden dream,'' Schwarzenegger said.

The ceremony was devoid of much of the usual inaugural pageantry. Bitterness over the recall vote and the state's financial troubles prompted Schwarzenegger to push for a more low-key ceremony. Nevertheless, the inauguration had 7,500 invited guests, plus several thousand people watching from the street, and drew such celebrities as Dennis Miller, Jamie Lee Curtis, Danny DeVito, Rob Lowe and Vanessa Williams. Hundreds of journalists from around the globe covered the event, some from Schwarzenegger's native Austria.

In addition to his actions on the car tax Monday, Schwarzenegger suspended implementation of new state regulations and called for a review of all regulations adopted, amended or repealed during Davis' administration.

Democrats, still the state's dominant party, have said that they will be willing to give the new governor a chance _ but most observers agree political good will is not a lasting commodity.

AP-ES-11-18-03 1517EST

[NYer]

The "GOVERNATOR"

[goldstategop]

Its going to be tough to impose fiscal discipline on the kids here but someone's gotta do it.

[Dog Gone]

I dunno. The facts are skimpy on this, but borrowing another 15 billion doesn't appear on the surface to be fiscal discipline.

[goldstategop]

I do have reservations about it but unless the Democrats reverse course and cut spending, we're going to have to live with more borrowing AND a spending cap. The only other option is a tax increase and you know as well I do the votes aren't there to help pass it in the GOP caucus in the Assembly and the Senate here.

[onedoug]

If it's not accompanied by significant spending cuts, I won't vote for it.

[goldstategop]

Our only hope is the prospect of being on the hock to pay back their spending spree and facing a spending limit that decimates their socialist dreams will wake the Democrats up to do what they don't want to do. Its really their choice.

[Uncle Hal]

I do not like the borrowing aspect but realistically I do not know what else he can do. I am sure there will be some spending cuts but not enough to make up the short fall. If the voters approve the new borrowing then they have signed on. If not then chop away with massive spending cuts. Any way it is not pretty. I am also for a spending cap based on inflation and population growth.

[Uncle Hal]

I do not like the borrowing aspect but realistically I do not know what else he can do. I am sure there will be some spending cuts but not enough to make up the short fall. If the voters approve the new borrowing then they have signed on. If not then chop away with massive spending cuts. Any way it is not pretty. I am also for a spending cap based on inflation and population growth.

[Ernest_at_the_Beach]

Nothing in here about his comments on his salary. I though I heard on a Foxnews Video he was turning that back to the State's General Fund! Anyone else heard that. Salary is 175,000 a year I believe!

[GraniteStateConservative]

He said lawmakers should also find an additional $11 billion in savings in the workers' compensation system and find a way to compensate local governments for the approximately $4 billion they lost when he rolled back a tripling of the vehicle license fee.

Isn't this what you mean?

[Dog Gone]

It's much easier to pressure Democrats into a spending cap than it is to target specific programs.

Once the spending cap is in place, watching them make the cuts is very entertaining.

[newgeezer]

Schwarzenegger says he wants to borrow up to $15 billion

Apparently, groping the babes turns out to be a lot more expensive than we first thought.

[johnb838]

I thought this was going to be an AP hit piece on the bonds, but it wasn't. I wonder why? Also they said Maria was holding "a bible", they neglected to mention it was the Kennedy Family Bible, 163 years old and used to swear in presidents, senators, attorney generals, representatives, judges.... I wonder about that too. Maybe just sloppy liberal reporting, but I dunno.

[goldstategop]

The Democrats have to do both with no tax increases. Arnold has sprung the trap!

[Centurion2000]

SACRAMENTO, Calif. (AP) _ Gov. Arnold Schwarzenegger said Tuesday that he wants the state to ease its budget woes by borrowing up to $15 billion through a bond issue.

NO ... no borrowing until you cut spending FIRST !!!! ...... illegals are killing that state.

[newgeezer]

When the girl at Burger King mistakenly gave me $5 too much change, I gave it back to her.

I'd say that's about the same as R-nold giving $175K to CA.

[goldstategop]

I really do hope they're that stupid. Cutting spending now would be unpleasant but it would also save them from having their credit card taken away. But with Democrats, rationality is the last thing one can expect from them these days, even when its clearly in their long-term interests.

[onedoug]

That barely scratches the surface. I mean deep cuts to entitlement programs and education, which too widely subsidize and encourage failure as a way of life.

"Enough is too much!"

[goldstategop]

Arnold would love to but he knows Herb Wesson and John Burton won't be the tooth fairies. They'll be the Grinches of Christmas Past.

[goldstategop]

You really expect the Democrats to commit political hara-kiri by doing what you'd like them to do? So would I. Dream on!