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Schwarzenegger hails state's new budget, but big deficits still loom
Sac Bee ^ | 7/28/04 | Dan Walters

Posted on 07/28/2004 9:40:14 AM PDT by NormsRevenge

From the moment he - somewhat surprisingly - offered himself as California's governor nearly a year ago, Arnold Schwarzenegger has promised that he would close the state's chronic budget deficit without new taxes or major damage to vital services by taking a realistic, tough-minded approach.

"The public doesn't care about figures," he said early in his campaign. "They have heard figures for the last five years. Figures and drafts and percentages. And all kinds of things. What the people want to hear is, are you willing to make the changes? Are you tough enough to go in there and provide leadership?

"In the past two budgets, the easy choices were made," Schwarzenegger said as he unveiled an austerity budget for 2004-05 in January. "Those budgets were shell games, using tricks and gimmicks to put off the hard decisions until after the next election cycle."

Schwarzenegger and his aides began calling his budget approach "a workout plan" that would, they said, bring income and outgo into balance over several years by restraining spending and counting on a surge of revenue as the state's economy recovers. Very soon, however, Schwarzenegger began to retreat from austerity in the face of stiff opposition from affected groups, even though he continued his tough talk about reducing bloat.

By the time Schwarzenegger presented a revised 2004-05 budget to the Legislature in May, he had added about $3 billion in spending, citing improved revenue. But by spending, rather than banking, those new dollars, Schwarzenegger put his "workout plan" in jeopardy. He contended that his revised plan would "move the state budget closer to a structural balance (and) away from the fiscal mess that came from five years of overspending," but the Legislature's independent budget office projected deficits that, while smaller, would continue to plague the state for several years to come.

(Excerpt) Read more at sacbee.com ...


TOPICS: Government; Politics/Elections; US: California
KEYWORDS: bigdeficits; hails; loom; schwarzenegger; statebudget

1 posted on 07/28/2004 9:40:17 AM PDT by NormsRevenge
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To: NormsRevenge

The man is absolutely fabulous. Tell me that any of those bozos that ran against him could have had as much success so soon as Arnold.


2 posted on 07/28/2004 9:45:20 AM PDT by ClintonBeGone (Take the first step in the war on terror - defeat John Kerry)
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To: NormsRevenge

just more loans, more bonds and higher fees...
more taxes are inevitably on the way...


3 posted on 07/28/2004 9:54:00 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: kellynla
just more loans, more bonds and higher fees... more taxes are inevitably on the way...

And still not a peep out of him about sizing down the gravy train for illegal aliens which costs us billions every year! Disgusting.

4 posted on 07/28/2004 10:02:44 AM PDT by janetgreen
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To: ClintonBeGone
the budget would still leave the state with a nearly $7 billion deficit in 2005-06, growing to nearly $10 billion in 2006-07.

This is based on the best case scenerio. I assume that includes interest on the bond. Is it now time for the "Don't Blame Me I voted For McClintock" bumper stickers? (just another example of when a true conservative is running a RINO appears & sweeps the other away & we end up EVERY time with a BIGGER budget - 3 Mil more in this yrs.)

5 posted on 07/28/2004 10:03:27 AM PDT by Digger
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To: NormsRevenge

Cutting spending will cure deficits ... it's the one solution that has not been tried much, but works every time.


6 posted on 07/28/2004 10:03:52 AM PDT by mgc1122
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To: NormsRevenge
The last paragraph says it all.

And if deficits do persist, the underlying conflict that besets the Capitol - spending cuts vs. new taxes - will arise anew.

With the road GovRino has chosen for California, I say chances are pretty good that income taxes will go up within 12-18 months. It would appear few people in the Golden State support responsible choices and are willing to suffer a reduction in social spending in order to straighten out the economic and fiscal mess the state government is in. A real fiscal conservative like Tom McClintock would have been fighting for spending reductions from the get-go and demanding accountablility. Arnold has been working on the margins and is afraid to tell the people the truth. Either cut spending, or income taxes will have to be raised.

7 posted on 07/28/2004 10:05:09 AM PDT by Reagan Man (.....................................................The Choice is Clear....... Re-elect BUSH-CHENEY)
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To: janetgreen

Well I won't say "I told you so!" but if you recall my McClintock campaign slogan from last year...
"Vote 4 McClintock or Pay$ the Con$equence$"

and here we are "paying the con$equence$"


8 posted on 07/28/2004 10:09:27 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: kellynla
"Vote 4 McClintock or Pay$ the Con$equence$"

Most CA voters were dazzled by Arnold's "star power", and now they're all mad at him. McClintock was the only one who had the guts to speak up for us.

9 posted on 07/28/2004 10:15:06 AM PDT by janetgreen
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To: mgc1122
Cutting spending will cure deficits ... it's the one solution that has not been tried much, but works every time

Would you like to call RINOld and inform him...we certainly have tried, to no avail...LOL

And if he would like McClintock's phone number for the 13% Solution, I would be happy to provide it...the telephone number and the solution!!!
10 posted on 07/28/2004 10:17:00 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: janetgreen
McClintock was the only one who had the guts to speak up for us

And if RINOld had stayed out of the race, McClintock would have beaten Bustamante and kept us out of this mess we're in now!!!
11 posted on 07/28/2004 10:20:04 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: mgc1122

"What the people want to hear is, are you willing to make the changes? Are you tough enough to go in there and provide leadership?"

Agreed. We will soon see how much spending Arnold will cut from the budget with his line item veto sword.


12 posted on 07/28/2004 10:47:22 AM PDT by TheDon (The Democratic Party is the party of TREASON)
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To: Digger

The article said it was based on worst-case scenarios, or did I miss something? It did NOT account for future economic growth, right?


13 posted on 07/28/2004 11:13:15 AM PDT by LS (CNN is the Amtrak of news.)
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To: LS


Manly-girl doesn't get that most services can't just pass this on to customers.


>>>>Liberal Los Angeles Democrat Assemblywoman Jackie Goldberg said higher income taxes on the wealthy and a new sales tax on services should have been included in the 2004-05 spending plan.


14 posted on 07/28/2004 3:12:11 PM PDT by BurbankKarl
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To: Digger
Is it now time for the "Don't Blame Me I voted For McClintock" bumper stickers?

Sure, if you stick a clown face on it because that's all TM is.

15 posted on 07/28/2004 8:14:51 PM PDT by ClintonBeGone (Take the first step in the war on terror - defeat John Kerry)
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To: ClintonBeGone
The public doesn't care about figures," and "The man is absolutely fabulous"are probably the two funniest statements I've seen published here on FreeRepublic.

What else could the Austrian Pretender say after negotiating that big, bloated turd and will someone please wake up ClintonBeGone and tell him the recall election is over, California replaced one liberal with another, the state is deeper in debt, the spending just keeps increasing and the BS just keeps getting deeper.

16 posted on 07/28/2004 8:35:40 PM PDT by Amerigomag
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To: Amerigomag

Have you considered digging up a Soreloserman bumper sticker? I can't think of a better display than your own fender.


17 posted on 07/29/2004 6:39:33 AM PDT by ClintonBeGone (Take the first step in the war on terror - defeat John Kerry)
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To: ClintonBeGone
Sure, if you stick a clown face on it because that's all TM is.

You must have been disappointed when your boy Arnold raised a ton of cash for him a few months ago.

18 posted on 07/29/2004 9:33:58 AM PDT by jmc813 (Help save a life - www.marrow.org)
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To: jmc813
You must have been disappointed when your boy Arnold raised a ton of cash for him a few months ago.

Not at all, it shows that even a clown like TM has his price. AS paid the price to shut him up and get him on his team.

19 posted on 07/29/2004 11:39:18 AM PDT by ClintonBeGone (Take the first step in the war on terror - defeat John Kerry)
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