CA: Deja vu? A windfall, a weak governor, CTA pressure and a deficit

Sac Bee ^ | 11/22/05 | Dan Walters

[NormsRevenge]

Philosopher George Santayana's famous maxim that "Those who ignore history are doomed to repeat it" should be engraved on large slabs of Sierra granite and permanently affixed to the wall of every office in the state Capitol - and quickly, because a much-weakened Gov. Arnold Schwarzenegger and a reality-oblivious Legislature may replay one of California's worst political blunders.

A half-decade ago, as California's dot-com bubble began to burst, those holding stock or stock options in shaky high-tech companies liquidated (or at least the smarter ones did). The state experienced a huge, one-time surge in personal income tax revenues from the proceeds, about $12 billion extra.

Then-Gov. Gray Davis officially acknowledged the windfall in May 2000, as he presented a revised 2000-01 budget, declaring that he would place it in reserve or spend it on one-time projects, and pledging that he would "resist the siren song of permanent spending, whether it comes from the left or the right,...

--snip--

As he uttered those words, however, Davis had already agreed to boost state aid to schools by $1.8 billion a year, essentially an extortion payoff to the California Teachers Association, which was threatening to push a ballot measure that would increase school spending by about $6 billion a year. Within a few weeks, Davis and the Legislature committed about $8 billion of the windfall to permanent spending, mostly for schools and health care, and to tax cuts, including a deep reduction in the so-called "car tax" that motorists pay annually on their vehicles.

In the following year, when state revenues returned to normal growth levels, California was left with a multibillion-dollar "structural deficit" that has ... been covered by tens of billions of dollars in official and unofficial loans, leaving the state with the nation's worst credit rating.

[Carry_Okie]

In 2000 we had the dot bomb bubble. We are now very possibly sitting on a real estate bubble with the increase in revenue primarily due to Prop. 13 reassessments. If the market busts and there are foreclosures, property tax collections would go down with resale of the houses into a weak buyers market.

[Amerigomag]

I was thinking, what can the Governor do to get his approval ratings back up?

1) Surreneder his Austrian citizenship.
2) Promise to only serve out his present term.
3) Propose a reduction in spending (<$110B) for the 2006-2007 FY.
4) Support a conservative for governor of California in Nov 2006
5) Use the $5.4B surplus against the $12B he borrowed from our children.
6) Promise never to reenter US politics once his term is over.

[Constantine XIII]

A half-decade? Just say "five years ago."

Sheesh.

[b9]

Have you written to the Governor's office?

He might appreciate your constructive approach.

[calcowgirl]

Can't he start doing weekly radio addresses like Ronald Reagan used to do?

He already does weekly radio addresses.

If you missed them, you can download them HERE via "podcaster" and listen.

[calcowgirl]

I've heard some of them--celebrating Earth Day, Rosa Parks, and Veterans Day (a few I remember)--but I don't remember what station I was listening to, or what time it was.

According to his original press release, the addresses are "distributed to media outlets". It may be up to the inidvidual stations whether they want to play them, or not.

[calcowgirl]

I think all the majors carry Schwarzenegger for major addresses--e.g. State of the State address, declaring State of Emergency, etc. These weekly radio addresses aren't news, per se. The ones I heard were more like feel-good PR opportunities, lasting only a minute or two each.

Here's a list of the 2005 addresses:

• Feb 11, 2005 - Gov. to Begin Weekly Radio Address
• Feb 12, 2005 - Gov. Schwarzenegger Discusses Education Reform in First Weekly Radio Address
• Feb 19, 2005 - Gov. Schwarzenegger Discusses Charter Schools in Weekly Radio Address
• Feb 26, 2005 - Gov. Schwarzenegger Discusses BRAC in Weekly Radio Address
• Mar 05, 2005 - Gov. Schwarzenegger Discusses Fiscal Transparency in Education in Weekly Radio Address
• Mar 12, 2005 - Gov. Schwarzenegger Discusses Merit Pay for Teachers in Weekly Radio Address
• Mar 19, 2005 - Gov. Schwarzenegger Discusses 'Breathe Easier' Campaign in Weekly Radio Address
• Mar 26, 2005 - Gov. Schwarzenegger Discusses Redistricting in Weekly Radio Address
• Apr 02, 2005 - Gov. Schwarzenegger Discusses California's Budget Crisis in Weekly Radio Address
• Apr 08, 2005 - Gov. Schwarzenegger Discusses Crime Victims' Rights in Weekly Radio Address
• Apr 15, 2005 - Gov. Schwarzenegger Discusses Nurse Education Initiative in Weekly Radio Address
• Apr 23, 2005 - Gov. Schwarzenegger Celebrates Earth Day in Weekly Radio Address
• Apr 29, 2005 - Gov. Schwarzenegger Discusses Benefits of Workers' Compensation Reform in Weekly Radio Address
• May 07, 2005 - Gov. Schwarzenegger Praises Mothers in Weekly Radio Address
• May 09, 2005 - Gov. Schwarzenegger Remembers His Mother in Radio Address
• May 16, 2005 - Gov. Schwarzenegger Discusses His Bold Transportation Agenda in His Weekly Radio Address
• May 21, 2005 - Gov. Schwarzenegger Discusses His Rebuilding Budget in Weekly Radio Address
• May 27, 2005 - Gov. Schwarzenegger Honors Veterans in Weekly Radio Address
• Jun 03, 2005 - Gov. Schwarzenegger Launches Podcast of Weekly Radio Address
• Jun 03, 2005 - Gov. Launches Podcast of Weekly Radio Address
• Jun 03, 2005 - Gov. Schwarzenegger Celebrates Moving Forward on the Road to Recovery in Weekly Radio Address
• Jun 11, 2005 - Gov. Schwarzenegger Discusses California's Leadership in the Fight Against Global Warming in Weekly Radio Address
• Jun 18, 2005 - Gov. Schwarzenegger Calls for a Responsible, Balanced Budget in Weekly Radio Address
• Jun 25, 2005 - Gov. Schwarzenegger Calls for Energy Conservation in Weekly Radio Address
• Jul 02, 2005 - Gov. Schwarzenegger Honors the Birth of Our Nation in Weekly Radio Address
• Jul 09, 2005 - Gov. Schwarzenegger Celebrates Passage of a Bipartisan Budget in Weekly Radio Address
• Jul 15, 2005 - Gov. Schwarzenegger Discusses Education Budget in Weekly Radio Address
• Jul 23, 2005 - Gov. Schwarzenegger Emphasizes Heat Safety in Weekly Radio Address
• Jul 29, 2005 - Gov. Schwarzenegger Discusses the Importance of Fighting Childhood Obesity in Weekly Radio Address
• Aug 06, 2005 - Gov. Schwarzenegger Highlights Investment in Roads and Transportation in Weekly Radio Address
• Aug 13, 2005 - Gov. Schwarzenegger's weekly radio address English and Spanish transcripts are below.
• Aug 20, 2005 - Gov. Schwarzenegger's weekly radio address English and Spanish transcripts are below.
• Aug 27, 2005 - Gov. Schwarzenegger Discusses Funding Increase for Education & Support for Exit Exams in Weekly Radio Address
• Sep 03, 2005 - Gov. Schwarzenegger Celebrates California's Workers in Weekly Radio Address
• Sep 10, 2005 - Gov. Schwarzenegger Discusses Disaster Preparedness in Weekly Radio Address
• Sep 17, 2005 - Senator Martha Escutia Serves as First Guest Host for Gov.'s Weekly Radio Address
• Sep 23, 2005 - Gov. Schwarzenegger Discusses California & Mexico's Shared Future in Weekly Radio Address
• Oct 01, 2005 - Gov. Schwarzenegger Discusses Major Investment in Vocational Education in Weekly Radio Address
• Oct 08, 2005 - Gov. Schwarzenegger Lauds Firefighters and Discusses Wildfire Prevention in Weekly Radio Address
• Oct 08, 2005 - Gov. Schwarzenegger Lauds Firefighters and Discusses Wildfire Prevention in Weekly Radio Address
• Oct 15, 2005 - Gov. Schwarzenegger Discusses How Californians Can Protect Themselves from Identity Theft in Weekly Radio Address
• Oct 22, 2005 - Gov. Schwarzenegger Promotes Million Solar Roofs Initiative in Weekly Radio Address
• Oct 28, 2005 - Gov. Schwarzenegger Celebrates the Life of Rosa Parks in Weekly Radio Address
• Nov 05, 2005 - Gov. Schwarzenegger Salutes Returning Hurricane Relief Personnel in Weekly Radio Address
• Nov 11, 2005 - Veterans Affairs Secretary Thomas Johnson Serves as Guest Host for Gov.'s Weekly Radio Address
• Nov 19, 2005 - Gov. Schwarzenegger Discusses Trade Mission to China in Weekly Radio Address

[calcowgirl]

Oops. Correction to above:

• Aug 13, 2005 - Gov, Schwarzenegger Urges California to Become the Fitness State in His Weekly Radio Address
• Aug 20, 2005 - Gov. Urges Passage of Jessica's Law in Weekly Radio Address