Posted on 12/05/2003 10:27:22 PM PST by FairOpinion
SACRAMENTO, Calif. -- The state Senate has turned down Gov. Arnold Schwarzenegger's budget package. That leaves little possibility for a last-minute agreement as the clock ticks toward Friday's midnight deadline to put measures on the March ballot.
Senators vote 34-0 against the governor's plan to cap spending, with even Republicans voting no after the outcome became clear. The governor's bond measure also lost.
At the same time, counter proposals from Democrats failed to get the two-thirds majorities needed for passage.
Senate Republican leader Jim Brulte of Rancho Cucamonga is warning that Republicans will try to put an even tougher spending limit on the November ballot if the negotiations fail to produce a March ballot agreement.
Schwarzenegger wants voters to consider his idea for borrowing up to $15 billion to wipe out the state's existing deficit.
He also wants the Legislature to place a spending cap on the spring ballot.
My understanding is the Arnold's cap is full of loopholes. The Republican Senators want a iron-clad cap that the Democrats cannot circumvent in the future. :)
I thought CA was already out of money? I prefer the state shut down all non-critical services until this budget crisis is resolved properly. NO NEW STATE TAXES!
Yes, but that would open the door for funding future budget shortfalls. Which really means every year because the Democrats cannot resist spending.
Sure why not? The real question is; Do the Democrats have the votes to pass these proposals? No, they do not.
Absolutely! Our Republican Senators drew a line in the sand and said, "No more."
How 'bout merging the Board of Equilization w/ the Franchise Tax Board ?.
Excess (qualified) employees could be turned loose on insurance/health care/education/welfare cheats/frauds.
That's just for starters.
I recommend no full scholarships to state college/universities for freshmen/sophs w/ under 1200 on the SAT.
Let the under prepared/slow to memorize prove their potential in the junior colleges.
They're lower cost & that's why they were created.
Do well there & the public will pay for your last 2 years..& by that time you may have changed your major from Women's/Hispanic Studies to something more saleable in the workplace.
Basic math/English skills would be achieved in J.C.
I don't understand.
First, you refer to "short term bonds". Are these bonds or short term debt. What limits are there on the amounts of such debt and what are the terms. Who can authorize such debts? Why would they have to be paid off in June? Why not just roll them over into yet more such debts?
As for the Republicans being responsible for the coming default of Kalifornia, I don't think that it will be the Kalifornia conservatives who are blamed. I think that most of us would cut programs in this state so deeply that the jobless people who have migrated to San Francisco would borrow money to leave the state.
Finally, what model of federal bailout do you envision? Would this be just an outright grant of billions of dollars? How many billions? Would it enable reckless spending into the future? Why would Bush support this? He didn't carry Kalifornia in 2000 and probably won't in 2004.
The behavior of our state government is completely compatible with bankruptcy. That is what happens to people who spend more than they make and who borrow what they cannot repay. There is nothing unjust about bankruptcy proceedings for such people. These proceedings require that the courts take over management of the assets of the bankrupt, distribute the assets in accordance with law, and provide the bankrupt with a clean slate.
In the case of Kalifornia, the "clean slate" would leave them with creditors who would never lend to the state again, thus solving the deficit financing problem. Voters, having successfully required super-majorities for new taxes and bond issues, could rest easy knowing that the state will not spend more than they take in.
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