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Posted on 06/24/2004 12:15:06 PM PDT by Ernest_at_the_Beach
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The skeptics are about to get their answer.
Just days before the June 30 end of California's budget year, the actor-turned-Republican-governor looks as if he is going to extract most of what he wants from the Democratic-controlled Legislature and pass his $103 billion spending plan on time.
Using dealmaking skills many lawmakers didn't know he had, Schwarzenegger has reached agreements with a variety of interest groups to help eliminate a $17 billion deficit.
So far, teachers, school officials, state universities and local government leaders have all agreed to accept short-term spending cuts in return for improvements in the future. And on Monday, Schwarzenegger reached a deal with five Indian tribes for a major expansion of casino gambling that would bring the state $1 billion this budget year.
"You've got to believe that the governor is setting himself up very well as the dominant individual in state politics," said Larry Gerston, a political science professor at San Jose State University. "The shadow he is casting right now is so long you can hardly see the Capitol."
While Schwarzenegger has been helped by an improving economy, if he gets a budget passed before the June 30 deadline, he will have accomplished something California has done only twice in the past decade because of bitter partisan gridlock. The man Schwarzenegger ousted in a recall election last fall, Democrat Gray Davis, could not meet the deadline in his last three years in office.
"He is moving the process the only way possible, with much dexterity and determination," said Democratic former Gov. Jerry Brown, now mayor of Oakland.
Schwarzenegger's spending plan does not raise taxes. But it uses billions of dollars in borrowing, accounting gimmicks and one-time savings to get through another year. Most of the big reforms he promised during the election remain on his to-do list.
"This year is all about stopping the hemorrhaging," said Allan Hoffenblum, a GOP consultant in Los Angeles. "He's only been in office a few months. Give him another year."
Since his election in October, Schwarzenegger has claimed several victories that have enhanced his power. Upon taking office, he repealed an unpopular increase in the car tax and forced lawmakers to repeal a law allowing illegal immigrants to obtain driver's licenses.
In March, he persuaded voters to approve the nation's largest state bond issue - $15 billion in borrowing. He also brokered a deal to reform the state's costly workers' compensation system.
Schwarzenegger moved early to gather support for his budget proposal, even before the final version had been released to lawmakers in May. He outflanked the Democrats by negotiating a series of side agreements with key interest groups.
Some Democrats are worried about the governor's growing clout and may try to hold up the budget if only to remind their constituents that they are still California's majority party.
Assembly Speaker Fabian Nunez said lifting a cap on freshman enrollment at state universities is his No. 1 priority. He also wants to rescind a wage cut for home health care workers. And some Democrats want to provide a cost-of-living increase in welfare checks.
All together, the Democratic list would add less than $500 million to the Schwarzenegger spending plan - less than 1 percent of the overall budget.
Gerston said that while many of the governor's solutions simply push problems off into the future, the Democrats appear to be putting up only token resistance.
"Democrats either go ahead and look the other way or they fight it," he said. "Clearly they appear to be going with the flow."
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On the Net:
Governor's Home Page: http://www.governor.ca.gov/state/govsite/gov-homepage.jsp
California Assembly: http://www.assembly.ca.gov/acs/defaulttext.asp
California Senate: http://www.sen.ca.gov
AP-ES-06-24-04 1352EDT
"And on Monday, Schwarzenegger reached a deal with five Indian tribes for a major expansion of casino gambling that would bring the state $1 billion this budget year. "
It's in there, about a third of the way down.
This is another great accomplishment.
Let's see what the figures are before we pass judgement.
Timing is everything. He's been lucky that the economy and his celebrity have given him a rare opportunity. I wish him well.
"Assembly Speaker Fabian Nunez said lifting a cap on freshman enrollment at state universities is his No. 1 priority. He also wants to rescind a wage cut for home health care workers. And some Democrats want to provide a cost-of-living increase in welfare checks."
Cradle to grave entitlements to the end, no matter what it means to house as a whole.
"We had to destroy the village in order to save it." Scumbags.
But if he folds on drivers licenses for illegal my outrage will know no bounds.
"we would have been a hellofalot better off fiscally if we had elected McClintock..."
yea...and we would have had a better 90's if Reagan had been president instead of Clinton. BUT NEITHER ONE WERE GOING TO HAPPEN.
Jeez, when will conservatives learn that half a loaf is better than NONE. And if Ahhhhnuuuuuld can make Kahleefoahneeyah close enough for Kerry to have to spend money...and give Jones a chance against Boxer...there is something else that McClintock could never have done...
I doubt McC would have traded what he has ben wiling to. Wilderness area, endangered species, drivers license........All these ideas would have been flamed royal if a Dim was bringing them forth.
Whatever you do don't mention the reality that Arnold was the only electable candidate other than Bustamecha, making him the only chance for a sure defeat of the racist Mexican.
Well since there was such as overwhelming demand, here it is again:
The 13% Solution
"Have you ever had to make serious cuts – 15 percent or more – in your family budget because of an unexpected job-loss or unforeseen expense? It’s not pleasant, but it's not impossible. And it's also not permanent. As long as you’re willing to face your financial problems squarely, you can be sure that the hard times won't last forever and things will improve.
But if you're not willing to face those problems – if you paper over your debt by borrowing and continue to spend as if that debt didn’t exist -- those hard times will follow you far into the future.
State government is no different. And as the new administration decides which road it will take, it is important to understand the simple math of the state’s finances.
California’s current budget deficit is caused by two actions Davis took last year to paper over his mismanagement: he illegally tripled the car tax and he attempted to borrow $12.6 billion unconstitutionally.
Governor Schwarzenegger rescinded the illegal tax increase on his first day in office. It’s important to note the word "illegal." Not one of the conditions required to raise the car tax had been met, and it was only a matter of time before the courts ordered the money to be returned to taxpayers with interest. By acting now, he saved California from having a multi-billion dollar hole blown in a future budget by court order.
But repairing this problem requires that local governments be reimbursed for their losses. In addition, the courts have already invalidated $1.9 billion of Davis’ borrowing plan, further deepening the deficit.
According to the Legislative Analyst’s Office, these developments mean that the state will end up spending $76.9 billion this year, with only $74.2 billion in revenue.
It gets worse. The courts are also poised to strike down the additional $10.7 billion of borrowing in Davis' last budget. It is not a pleasant financial situation. But it is also not impossible.
If the current rate of state spending were reduced 13.4 percent on January 1st and frozen through Gov. Schwarzenegger's first budget, the state would be back in the black, free and clear of external debt, and able to start the Governor's second year in 2005 with a clean slate.
A 13.4 percent reduction would mean cutting $5.2 billion from this year’s budget before January 1 and setting next year's budget at $66.6 billion. That’s a big cut – and it means giving up billions of dollars of programmed spending increases next year. But it's still 15.2 percent more than California was spending when Gray Davis took office. And after 18 months of austerity, the Governor would be able to plan his second budget with $12 billion of breathing room in 2005 when revenues are projected to reach $78.6 billion.
Like a family that has faced its finances squarely and tightened its belt, California would be solidly back on its feet and looking toward a sunny future.
The alternative is to borrow the difference at heavy rates of interest over the next generation. Like a family that can’t bear to change its ways, it would end up dragging its financial difficulties into future years as it struggles to meet its current expenses and pay down a crushing credit card debt as well.
These are the two roads diverging in the budget woods and the choice that is made in coming weeks may well determine whether California has the fresh financial start it deserves, or whether the ghost of Davis' excesses stalks a generation to come."
It's not rocket science folks, you can either cut your expenses or borrow. Looks like AS has decided to prolong the misery and borrow and raise fees.
I won't say "I told you so!"
Let me remind you...... Yes, timing can be everything and the economy is going in his direction (THANK U GWB!) but Arnold had to foresee this and take a huge chance on it. He believes in lowering taxes and not raising them. He saw GW doing this and knew a turn for the good was coming....
He is lucky at his celebrity...? Are you kidding me. This guy worked his A** off to get where he is...And the highest paid at what he does.
Rare oppurtunity.....No one puts themselves in a position and then they take action. Arnold is that man. Gray Davis never was.
Yea, well we had a RINO before in Pete Wilson and he practically put the state in bankruptcy.
RINO's like 'Rats have never learned the first thing to do when you're in a hole! And that's STOP DIGGING! LOL
Off to lunch, all.
Have a good one!
Schwarzenegger, Confident and Ready for Prime Time (supporting Bush at Republican Convention)
Speaking of reality, wasn't the election decided months ago and isn't Ah-Nold now Governor? I can't understand why anyone still debates the election! It's OVER!
100% irrelevent considering the fact Tom McClintock was unelectable.
Schwarzenegger -- 3,743,431 votes
Bustamante -- 2,432,463 votes
McClintock -- 1,026,492 votes
Tom brought in less than 1/2 that of Bustamante. Arnold brought in more than Tom and Bustamante combined. That outcome would not have changed even had every California Freeper voted for McC. But don't that little reality bother you; you keep on living in your fantasy world.
You underestimate the celebrity culture in this country. That does not take anything away from Arnold but it's a fact. We're just lucky he's a republican. He could have easily turned dem to please his kennedy relations.
Yes, that was the reality.
Not sure I see your point..?
I love the 13% solution. Hell, I'd make it 20%. That's not the issue for most everyone here on FR.
Rather, the issue is, Could it have passed? (Whether or not McC were governor. After all, Gov. Arnold COULD have tried to pass McC's plan, as McC urged him to do.)
What would have happened with The-13%-Solution-Budget is this:
It would have failed to get a majority in the wacko leftist Legislature -- both chambers -- and may not even have been given a floor vote;
then said wackos would pass a ridiculous, "up yours, Tom" budget instead;
which the governor (whether or not it was Tom) would have vetoed, and rightly so;
and then we'd have a government shutdown;
and then -- this is really the key -- the public largely would blame Republicans for the shutdown, not the ridiculous demands of the Legislature leftists;
and then, after the next elections, the state would just end up with an even MORE lefty array of elected loonballs.
JMO.
Thought I'd check this thread. Yup, the Arnold Haters are here!!!
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