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Schwarzenegger's debt plan fails to win backing
Financial Times ^ | January 15 2004 | Christopher Parkes

Posted on 01/15/2004 1:31:31 AM PST by calcowgirl

Arnold Schwarzenegger faces an uphill task convincing Californians to accept the most crucial element of his plan for the state's fiscal recovery, according to the first sampling of popular opinion since he became governor.

While 64 per cent of voters like the way he is handling the job, only 35 per cent will say "yes" to borrowing $15bn to restructure debts accumulated on his predecessor's watch.

The findings by the Public Policy Institute of California suggest the state's finances could be thrown into chaos if the Republican newcomer fails to overcome widespread scepticism.

Steve Westly, the Democrat state controller, warned last week that if voters rejected the bond issue in a state-wide election on March 2 the state would run out of cash by June.

A "no" vote would also kill linked proposals to oblige the legislature to enact a balanced budget, give the governor special powers to address fiscal emergencies, and establish a rainy-day reserve fund.

"Voters have to like the message, not just the messenger," said Mark Baldassare, survey director.

While the sample clearly approved of the secondary proposals, intended to ensure long-term fiscal stability, 52 per cent said Mr Schwarzenegger's endorsement of the bond made no difference to how they felt about it. "Given the bitter residue of this past year's financial fiasco, they are understandably wary about incurring more debt," Mr Baldassare said.

This is also reflected in the slim support recorded for a proposition, also on the March ballot, for a bond issue to raise $12.3bn for school building - long the most popular cause in the state.

With 44 per cent opposed to the "economic recovery bond" and 21 per cent undecided less than two months before the Democratic presidential primary, the governor is likely to devote much of his energy promoting the plan recently approved by a large majority in the Democrat-dominated legislature.

That approval was widely seen as a victory for his powers of persuasion, which now face a further test among an electorate that appears inclined to trust him.

The primary is expected to attract large numbers of Democrat voters, among whom only 31 per cent support the borrowing project.

On other specific measures sampled, Mr Schwarzenegger's approval rating is above 50 per cent.


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: bonds; calbudget2004; calgov2002; prop57; prop58; schwarzenegger
A "no" vote would also kill linked proposals to oblige the legislature to enact a balanced budget, give the governor special powers to address fiscal emergencies, and establish a rainy-day reserve fund.

Another incorrect article.

1 posted on 01/15/2004 1:31:31 AM PST by calcowgirl
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To: calcowgirl
No big surprise!
2 posted on 01/15/2004 2:30:49 AM PST by Ernest_at_the_Beach (Davis is now out of Arnoold's Office , Bout Time!!!!)
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To: calcowgirl
Full Survey available at PPIC.org

PPIC Statewide Survey:
Special Survey on California's Fiscal System, January 2004
Mark Baldassare
38 pp.

3 posted on 01/15/2004 2:46:14 AM PST by calcowgirl (No on Propositions 55, 56, 57, 58)
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To: calcowgirl
Killing it would spur putting a real spending cap on the ballot - and would force Sacramento to make real cuts in spending once the cupboard's bare.
4 posted on 01/15/2004 3:42:25 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: calcowgirl
This is a little premature, to say the least: Arnold and his supporters will blitz the state between now and March to ensure passage of this. The media offensive hasn't started yet.
5 posted on 01/15/2004 4:32:18 AM PST by LS (CNN is the Amtrack of news.)
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