Unexpected revenue helps Calif. budget

Bakersfield Californian ^ | 5/13/05 | Tom Chorneau - AP

[NormsRevenge]

SACRAMENTO, Calif. (AP) - A nearly $4 billion windfall from unanticipated revenue would be used to pay down debt, improve highways and restore some funds cut from schools and other programs, Gov. Arnold Schwarzenegger proposed Friday.

While the revised $115.7 billion state budget plan would take a big step toward balancing state spending with income, it did little to satisfy the governor's critics among Democratic lawmakers and education officials, who vowed to fight the proposal.

"As governor, you have to be like a parent," said Schwarzenegger during a news conference near the Capitol. "No, no, no - you can't this, you can't do that. You have to look at the whole picture."

The budget proposals Schwarzenegger unveiled in January called for spending $111.7 billion in the fiscal year that starts July 1, and closing an estimated $8.6 billion revenue shortfall through a combination of cuts and $4 billion in fund transfers and borrowing.

An improving economy and income from tax scofflaws who took advantage of an amnesty program have swelled state coffers and allowed Schwarzenegger to propose closing the shortfall without more borrowing.

Interest groups had hoped the governor would use more of the unexpected money to help cash-strapped programs - especially educators, who say Schwarzenegger broke a promise he made last year and shortchanged schools by $2 billion.

The governor's budget plan includes $175 million in additional funding to reduce class sizes in the state's worst performing schools. He also wants to provide $50 million more to create incentive pay for teachers who work at underachieving schools and for teachers who improve student test scores.

"The governor has taken away $2 billion from public schools and now is giving back a small portion of what was taken," complained Mary Bergan, president of the California Federation of Teachers.

Democratic Assembly Speaker Fabian Nunez said the issue of education funding will drive the budget debate this summer, when lawmakers will try to agree on a budget to send to the governor's desk. "The governor has broken his promise to public education," Nunez said.

Schwarzenegger argued his budget would increase funding to schools by almost $3 billion over what they received in the current fiscal year. He said it would be a mistake to spend the unanticipated money - which he considers to be one-time income - on operational expenses such as schools because those costs continue to accumulate long after the windfall money is gone.

[goldstategop]

I agree with the Governor. Its one-time money that must be used to pay off the debt and to fix our infrastructure. We can't have everything we want. Here in California, we can get out of our financial hole without massive tax increases. The problem is, the Democrats aren't listening.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[NormsRevenge]

"As governor, you have to be like a parent," said Schwarzenegger during a news conference near the Capitol. "No, no, no - you can't this, you can't do that. You have to look at the whole picture."

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You have to look at the whole picture.

Looks like business as usual to me. more more more .. to fill the public feeding trough and keep the cradle to grave socialist engine revving along unimpeded.

[calcowgirl]

Prior thread:

Calif. gov. ups state spending plan to $115.7 bln
Posted by calcowgirl
On 05/13/2005 3:43:22 PM PDT · 43 replies · 332+ views

[NormsRevenge]

FRom the Sac Bee.. EXCERPTED , tail end of the article..

Big state surplus allows governor to reduce debt, borrowing

http://www.sacbee.com/state_wire/story/12883327p-13732146c.html

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The release of the budget comes as Schwarzenegger prepares to decide whether to call a special election this fall. The governor is pushing ballot measures that would automatically cap state spending when lawmakers can't agree how to erase funding shortfalls, redraw legislative districts and length the time it takes for public school teachers to gain tenure.

The proposals have been widely criticized and the governor's once stellar standing in the polls has fallen.

Nunez said the governor's new budget proposals were a "photo opt" intended to give him a boost in the polls.

Some of the governor's supporters, however, argued that the budget plan reflects sound fiscal choices.

"One-time revenues should not be dumped into autopilot spending," said Sen. Charles Poochigian, R-Fresno. "Gov. Schwarzenegger's May Revise does not call for tax increases. It proposes fiscally responsible uses of one-time revenues, and works to pay down some of California's accumulated debt."

[calcowgirl]

$116 Billion dollars!

I'm sure glad we elected this "Fiscal Conservative." /sarcasm

[calcowgirl]

Amazing. As the (R)s stretch for good things to say, they seem to ignore the elephant: $116 BILLION DOLLARS! They seem to think that by not caving to the leftists on all spending means this is a good budget.

Gray Davis was thrown out of office for increasing spending to $99 Billion. In 2 years, Arnold has helped accelerate that. What part of "Cut, Cut, Cut" does he expect us to forget?

[goldstategop]

No more auto-pilot spending! Gawd, the Democrats here have taken complete leave of their senses. When we have money that's here today, gone tomorrow, the last thing they want is to invest it responsibly. To add insult to injury, even though the state has a record windfall, they still want to hike taxes.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[NormsRevenge]

It'll be closer to 118B before it's all done is my guess.

It's all the entitlement programs and social survival programs yaknow, and with them all set in perpetual growth mode,, frankly,, it's inevitable that the system will crash and burn all by itself if left as is.. reforms or not.

[MinuteGal]

Those teachers sure move fast to try to get their mitts on any windfalls, don't they?

Leni

[goldstategop]

Agreed. Notice we're helping schools though but the petulant Education Lobby says its not enough. There's no gratitude whatsoever from Democratic allied interest groups for what the public is doing. Its never enough. Ideally, I'd rather have the money refunded to the taxpayers but we can't put off paying down the debt and fixing our dreadful transportation system. If the Democrats have a problem with common sense, then they should explain to the state's voters why they think we have a revenue problem. We really have a spending problem and with $116 billion we're already spending way too much. But for our friends on the other side of the aisle, that's too little. ROFL!

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[NormsRevenge]

I guess I wouldn't begrudge them what we already spend, which never seems to be enough these days, if the results of the educational system were at a level they used to be at not so long ago... before unions and feeel gooders took over the schools and the curriculum.

You don't give a drunk the key to the liquor store. Well, not if ya know better. ;-)

[calcowgirl]

The mistake was (R) voters reading the blue text instead of the red text.

Arnold, from September 2003, before the Recall Election:

"It is easy to go and say we are going to give you more on this, more on that. Yeah, of course I want to give away anything and everything, but can we afford it? We always have to come back to one thing and that is, can we afford it! As I said, I teach my kids don't spend more than you have. We have to do the same with Sacramento. It doesn't make any sense. Of course, we want to help everyone. We want to reach out to everyone. But can we afford it and therefore destroy our business environment in California and have everyone move away.

"Sometimes, as a surgeon would say, you have to cut to save the patient. And this is what the situation is here. That is the bottom line. So we have to look at everything. Before we promise anything to anyone right now, I think, stop. Stop, stop, stop with the spending! And then lets analyze the whole thing and see where the problems really are and where can you cut.

[CAluvdubya]

If Arnold would stick to what he says about merit based pay some progress could be made toward bettering our school system.

Has anybody heard Arnold mention merit based pay in awhile? I haven't. We need to get lazy "copy queens" out of the schools and reward the hard working teachers. And don't call it combat pay. Tell it like it is...based on merit!

[calcowgirl]

Had Arnold offered a fiscally responsible budget in January (much less than the $111 he proposed), the cries from the left would have been no greater than they are. He missed an opportunity (2 years in a row).

His Kennedy advisors are winning the leftist fight, while aided and abetted by the (R)s.

[calcowgirl]

He dropped the merit pay initiative "for now".
Instead, he has a separate initiative to give certain teachers more money (while paying the others the same as today).
They are two different pieces of legislation.

[CAluvdubya]

This is what I'm always afraid of with Arnold. He sounds great on t.v. and in interviews, but I can't see what he's following up on. Am I missing something? (I had such high hopes for merit based pay)

[calcowgirl]

>>This is what I'm always afraid of with Arnold. He sounds great on t.v. and in interviews, but I can't see what he's following up on. Am I missing something? (I had such high hopes for merit based pay)

All I can say is "read the fine print." Remember the "balanced budget" promotions for Proposition 57/58? It was touted as a "spending cap." It wasn't. Nor is this years' "Spending Reform." He is a politician selling a product. Unfortunately, those products are not exactly what they are purported to be. Look for the warning labels!

[goldstategop]

If he caves in on taxes, he's finished. The Democrats are taking their time hoping the Governator will agree to a meaningless compromise. Say what you will about them, they are playing for keeps.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[goldstategop]

I voted against Prop. 57 and 58. For me, it was way too much borrowing. We're now paying that off and the Democrats resist even a weak budget cap that's now on the ballot. Conservatives should get behind it to send Sacramento a message. Not particularly cause my heart's behind the Governor's spending but because the Democrats are the enemy. Never forget. Now let's "lock and load!"

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)