Posted on 01/13/2006 8:43:11 AM PST by NormsRevenge
After Arnold Schwarzenegger took over as governor in 2003, his experience playing the title role in "Kindergarten Cop" surely came in handy. For years, Sacramento's leaders had acted like irresponsible children, eager to add new programs and benefits without paying for them. The result was an annual gap of $16 billion between revenue and spending.
For two years, Schwarzenegger played the role of responsible adult, trying to hold the fort on spending while promoting workers' compensation reforms and other pro-business measures to increase revenue.
The result was real progress. The annual structural deficit was reduced by more than half, and a report two months ago by the Legislative Analyst's Office suggested it could be all but gone by 2010 if the state didn't go on another binge. Surely Gov. Schwarzenegger would protect us from that.
Guess again. The more that comes out about the 2006-07 budget he unveiled this week – a plan that increases spending by 8 percent even as revenue goes up by only 4 percent – the more plain it is that it amounts to a disastrous retreat. The result, according to forecasts belatedly released by the state, will be that California's structural deficit gets much worse in coming years – even with optimistic predictions about continuing growth in revenue.
As for the governor's old promises about prudence, well, to borrow from a discredited former White House press secretary, they've become "inoperative." What about that $15 billion the state borrowed under Proposition 57 in 2004 specifically to help retire the debt run up under Gov. Gray Davis? It's now going to pay for debt run up under Schwarzenegger.
Here's even more bad news: As disappointing as the new budget is – with its billions in new spending and new red ink – it's only likely to get worse in coming months. The Democrats who control the Legislature want to spend even more than the governor and are even more opposed to program cuts. The budget also includes no money for raises for thousands of rank-and-file state workers – as if a pay freeze has any chance in a government dominated by public employee unions.
So far, polls suggest the public likes Schwarzenegger's new profligacy. That doesn't make it right. The governor's retreat on spending makes it more likely that he someday will retreat on raising taxes. As any responsible adult will tell you, credit card bills don't just go away. Someday, someone has to pay. If only this sank in with Sacramento's leaders.
2006-07: $6.4 billion
2007-08: $6.6 billion
2008-09: $9.7 billion
2009-10: $8.6 billion
Source: State Finance Department
Again, or should I say, as usual, POLITICS trumps what is right for the state, the country, etc, etc, etc. The corruption in principles of politicians will bring a taxpayer revolt...it is true that presently California is in a self-destruct mode. It is a liberal trash-hole and that says it all. The future means nothing -- only present-day politics is of importance.
No different than most republicans these days.
Schwarzenegger is the posterboy for the RINO wing of the Republican party.
I posted this base line yesterday - is someone at the UT reading FR???
I spoke to a former State program director yesterday. She said that the expansion of the children's health insurance program from 250% to 300% federal poverty puts the qualifying income at $50,000+. Imagine, anyone up to and including 50k+ earners on the public dole to the tune of up to $600 per month in value or more for their kids' insurance.
I have a feeling if we were to take a poll of all in-state news orgs and where they go for follow-up analysis.. FR is up right there. FR lends itself to that end.
There are a couple sites that provides a lot of links to news on a daily pasis buit for the analysis side of things, FR is a good resource to round out the mood and sentiment within the grassroot ranks.
buit=but
round=sound
What is the states credit rating right now? This won't bode too well for that I would imagine.
The people just want an endless gravy train and to hell with the consequences of it.
Arnold S.--tough guy in the movies (fantasyland). Wimp in real life.
The sentence above doesn't match the sentence below.
For two years, Schwarzenegger played the role of responsible adult, trying to hold the fort on spending while promoting workers' compensation reforms and other pro-business measures to increase revenue.
If he was being good the first two years and only fell off the wagon during this budget proposal, why then is there new debt under Arnold to be paid for? Hmmm...
What the people want, the people get.
In case anyone is wondering were the $$$ are going in Education:
"Coinciding with special education law is a large number of unfunded mandates that are not reimbursed by the state or federal government. For example, the financial encroachment on the District’s general fund has reached approximately $1,000,000 per year. Some examples are as follows:
When a special education student requires transportation, the District must provide it. We are currently transporting 36 students at an average cost of $900 per student per month.
If a student must be placed in a County program, the cost is approximately $22,000 per student per year.
If a student must be placed in a non-public school placement, the average cost is $32,000 per year.
When students receive one-to-one aides, the cost for a 15 hour aide is approximately $15,000 per year."
State Senator McClintock was on KSFO this morning talking about Arnold and his big spending plans. Evidently Arnold is trying to emulate Pat Brown, who as governor in the 60's built much of our highway system, started a lot of new college campuses and built a number of major water projects etc. However these projects by Brown cost only $20 billion in TODAYS dollars. Arnold is talking about spending $220 billion. Folks things do not look good for the state of CA. or the GOP in this state.
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