(CA) Governor (Schwarzenegger)Rallies Support for Finance Plan

LA Times ^ | Dec. 2, 2003 | Daryl Strickland

[FairOpinion]

Gov. Arnold Schwarzenegger plans to seek support — starting today — by holding several public rallies for a controversial plan to close budget gaps and shore up the state's finances.

His appeal for broader backing comes as state Treasurer Phil Angelides, a Democrat expected to run for governor in 2006, is scheduled to launch today an advertising campaign against the $15-billion borrowing plan.

This week, Schwarzenegger, who proposed cutting $4 billion from the state budget over the next four years, has stepped up his drive for a bond issue of up to $15 billion, as well as a spending cap designed to avoid future financial crises. Legislators face a Friday deadline to put the measures on the ballot.

[FairOpinion]

"state Treasurer Phil Angelides, a Democrat expected to run for governor in 2006, is scheduled to launch today an advertising campaign against the $15-billion borrowing plan."

The Democrats are already starting to undermine Arnold's CA recovery plan.

Republicans need to figure out, whose side they are really on.

[FirstPrinciple]

Not true. If you wish the best for CA, you would be against the "borrowing" (read future tax hikes) plan as well. I have no idea why a Democrat proposes it, but politics makes strange bedfellows. What Arnie needs to do is cut spending like a true Terminator.

[South40]

Arnie in San Diego

[FirstPrinciple]

So, how much interest will these bonds be paying?

[South40]

Don't know.

[Tamzee]

Later in the above article...

"The cap he proposed would lower spending by $14 billion starting in July. Then, the spending limit would rise no faster than population and per capita income."

There he goes again... dang librul ;-)

[ambrose]

This is where Warren Buffett gets his payoff... by going long on these bonds.

[Reagan Man]

Ouch!

[ambrose]

Anyone who has followed the life and career of Buffett knows that Mr. Buffett does not do *anything* if there isn't some moolah in it for him.

[Salvation]

To read later.

[concentric circles]

The spending cap to go with the bonds sounds good but in California it's only a matter of time before the cap is gutted just like the last spending cap we had.

What we're left with is an obligation to pay an estimated $30 billion in principal and interest over the life of the bonds.

That doesn't look very attractive when it is estimated that $5 billion in cuts now and freezing spending at that level in the next budget would accomplish the same thing over the lifeftime of a measely two budget years.

[FairOpinion]

And the REALISTIC alternative is......??????

[concentric circles]

So you're saying that our only "realistic" option is to sell our children into tax slavery?

[FairOpinion]

Bonds are NOT a tax.

Arnold is exactly needs to bonds to PREVENT having to raise taxes.

It is NOT possible to cut sufficient amount fast enough to solve the crisis built up over several years.

[FairOpinion]

And you STILL haven't provided a REALISTIC alternative. And neither did McClintock.

[concentric circles]

Down the road, our children will have projects they would like the state to undertake. But they will be squeezed by payments on these bonds and left with no option but taxing themselves still more to pay for both their own vision of government and for our failures.

To start we can cut class size reduction in elementary schools which is costing us $1.7 billion this year and was determined to be ineffective by a Rand study.

[NormsRevenge]

Did ya know Mandated funding approved thru the initiative process can be suspended in the event of emergencies?

Now that would be a trend to set, huh?

But becuz social programs, etc (which include a socialist agenda in the educational institutions) are off limits per the Gubinor, Don't hold your breath.

Will Rairdon buck his own man? Will education and the strangleholds of leftist school boards and unions be loosened or will it tighten even more?

Not that I'm trying to horn into this little love fest here, mind you. ;-)

[Reagan Man]

I totally agree. The truth always hurts. That was my point.

[concentric circles]

Emergency? You bet! But it takes courage to look into the abyss.

[FirstPrinciple]

Bonds are future tax increases. How else do you think you bill pay back the 15 billion plus interests? It is not like the bond issue is going for some economic stimulus. It is going to provide for the govt which does nothing but suck up more money from the economy. The realistic alternative is to cut govt spending by 15 billion.