Posted on 04/24/2006 4:28:50 PM PDT by NormsRevenge
I have refrained from commenting on California’s budget because it is still uncertain exactly what is going to happen in this year’s budget debate. This, however, is what we know up to this point in time.
Last year, the Legislature approved, and the Governor signed, a budget that increased state spending by $11 billion.
The government employee unions complained that it wasn’t enough. This year, the Governor proposed a budget that increased spending by an additional $7 billion.
The government employee unions are complaining that it is not enough.
The Governor’s budget spends $6 billion more than projected revenue.
The government employee unions complain that it isn’t enough.
In 1999, then-Governor Gray Davis proposed increasing spending by $9 billion. That was the largest spending increase in the history of the state of California, until 2000, when Gray Davis increased spending by $12 billion.
Last year’s spending increase was the second largest in California’s history. This year’s proposed increase is the same as the one in Davis’ first term. Unfortunately, Governor Schwarzenegger looks like he is making the same mistakes as Gray Davis. The only problem with his strategy is that if the budget collapses like it did during the Davis years, then the resulting budget deficit will be the Republican’s fault. In 1999-2001, Republicans could rightfully complain that the state’s budget woes were entirely Democrat’s fault. If Schwarzenegger’s plan is fully implemented, Republicans will lose that argument. Schwarzenegger’s spending plan is at least as bad as the spending plans proposed by Gray Davis, and, in my opinion, will lead to the same bad outcome if the economy should slow down (as it inevitably will).
The good news is that the Assembly Republicans have decided to say no to Schwarzenegger. Schwarzenegger said he wants to spend $7 billion more than the state receives in revenue. The Assembly Republicans said no, the state should only spend what it takes in.
Schwarzenegger said he wants to expand government as fast as Gray Davis. The Assembly Republicans said no, they want to slow down the growth of government.
The Schwarzenegger budget did not resolve the state’s debt issues, particularly the $15 billion debt that Gray Davis created. The Assembly Republicans said they want to make sure that debt is paid, before we spend another dime in new state programs.
The Schwarzenegger budget does not seek to resolve the growing government pension problem. The state’s Legislative Analyst Office recently reported that the state is facing a $40 to $70 billion problem because it has not funded state retiree health benefits adequately. According to the LAO, it will take $6 billion a year to adequately fund these former state employee benefits. Assembly Republicans say the state budget must resolve this impending crisis.
The good news is that when the state goes bankrupt, I won’t be in the Legislature. The bad news is that the state will go bankrupt if it continues to follow this course. But if the Governor listens to Assembly Republicans, he will avoid bankruptcy. The government employee unions will continue to complain. Who will the Governor listen to, Assembly Republicans or the unions? Only time will tell.
They must fire 1 out of every 4 state employees or their pensions will take the whole state down. Mid level no bodies make $130K plus bonuses plus 66% at retirement. Its worse than anyone knows.
Arnold tried, Unions lied, the balanced budget died.
Norm, we are doooooooooomed.
Seriously, considering how politicians cook the books I am surprised that the house of cards (wobbly though it may be) still stands.
bump for publicity
Well if I thought it would do any good and the stupid California politicians would learn from it I would say.....just bankrupt Calif and get it over with.
But the stupid politicians here would just say we didn't do enough. They think they can spend their way out of bankruptcy.
Mr. Haynes is one of the few sane voices in Sacto. and he is leaving.
As for Ray, think 2010.. we're pretty much screwed here in the near-term, regardless who is in office.
Anyone know what this is all about?
http://www.sacbee.com/static/richmedia/pdf/0423survey01.pdf
Yep, unions connected to the government/tax dollars should be prohibited from making more money or getting more benefits than the average wage in the private sector.
The Senate Parking coordinator makes $110,000 a year. She told me directly that they only have 3 or 4 vacated spots a month to assign, hence her work load.
The RATs in the California Legislature have a plan - wait for the election of another RAT and then rescind Prop 13 (thereby quadrupling property taxes), double the state income tax and raise the sales tax to 25% - there, that ought to fix the problem!
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Bet she gets 4-6 weeks off vacation plus 20 days they dont need to show up...its a crime actually.
True story they did a sting on SF Muni employees. The day they came to audit, the supervisor shows up in a trench coat, slippers, and underneath he had his pj's on. He clocked in and went home while they stared in awe. Then they went out back and found 4 employees sitting in a car drinking beer..in the morning....TRUE STORY.
Where do I sign up for that job? My college doesn't offer courses in Parking Coordination :-(
Are you sure it wasn't casual friday?
But now he is just another RINO politician. He should have refused to run for a second term, denounced the unions once more in the most forcful terms, and gone back to making movies. In 10 years when this all blows up Californians would be begging him to fix things. Now, as the article points out, he has been co-opted and will likely take the blame for the future blow out. Similar to what Bush has done on the Federal level. True partisans might wish that Hillary gets the top job in '08, just in time for the big POP! of the energy/real estate/ currency bubble. No matter what the media say, it will be her issue is she's in the seat when the music stops. And stop it will, in both California and Washington.
Anyone who stayed awak in Economics 101 cvouda tolja so.
Governor Swartzeneger tried to set things right but the socialists who control the voters shot him down.
the real problem is that a sovereign state cannot go bankruptcy. Guess who will pay?
Perhaps I need to update my rhyme thusly...
"Arnold tried, Unions lied, the balanced budget died,.........
...and Arnold caved to the left side."
politicians come and go but their debt lingers on forever.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.