Posted on 03/13/2007 6:40:58 PM PDT by NormsRevenge
GOV. Arnold Schwarzenegger's ambitious plans for his second term may crumble if the state's nonpartisan legislative analyst is correct with her numbers. While the governor pitched a $2.1 billion surplus when he unveiled his budget in January, Elizabeth Hill estimated that due to slower-than-expected revenue projections, Schwarzenegger's plan would actually leave the state with a $726 million shortfall for fiscal 2007-08.
If we assume Hill to be correct — and she often has been — this a warning that must be heeded. Economists have said that a slugglish housing market has hurt economic growth, and state revenues in January were $1 billion lower than projected due to lagging personal income tax collections. The two could be related, judging by rising home foreclosures. Though the answer won't be known until tax season is over, Hill's estimations have been reliable over the years through Republican and Democrat administrations.
A spokesman for Schwarzenegger basically said the governor intends to stay the course, but we hope he takes a thorough look at this report and takes a realistic approach with the upcoming budget. This will be further evidence of whether Schwarzenegger has truly learned from the "girlie man" mistakes of his previous term.
We believe he has. Schwarzenegger has been willing to change before when it came to transportation and working with the Legislature, and he does have the insight to see both sides. Our advice to him is: The sooner you prepare for the worst, the better.
The troubling aspect of all this is that last year there was a windfall of more than $8 billion that was spent on education and other programs. Yet a potential shortfall this year should've been anticipated. The housing boom led to the windfall, but real estate analysts warned that the market was moving at an unrealistic pace. We've been on this budget roller coaster for years — one year we spend, the next year we cut. When are we going to learn to keep some revenue in reserve for a rainy day?
The problem, too, is that much of the budget is already spent due to state and voter commitments, such as bond measures. Now, just when lawmakers in Sacramento were on the doorstep of cooperative euphoria, there stands the potential for a huge roadblock.
If the rain comes, the new spirit of cooperation in Sacramento may wash away. Expect budget fights to commence among the governor, Democrats and Republicans. If the analyst's numbers hold true, some valuable programs will suffer, and the ongoing budget debt Schwarzenegger promised to eliminate will no doubt linger.
For the life of me I cannot comprehend the good people of CA actually believing this bogus Bozo actually is helping clean up the messes Gray Davis started.
In fact, Arnoiled had simply advanced and compounded the messes to the point that we really have far more reasons to Recall Arnoiled that we ever had to Recall Gray Devious!!!
Yet, inexplicably, we have FReepizoids on here defending this idiot STILL TO THIS DAY!!!
No they're not; they're busy promoting Rudy. The disaster they made of California they now want to take national!
They never stop stirrin up strife with committed, movement conservatives, do they? There's something about such conservatives that really bothers their consciences for being obsessed with political pragmatism to a horrible fault. It's really amusing and amazing to watch.
The disasters they help create are certainly not fun to watch, however. They just wipe out any chance of acheiving any forward progress by a committed movement conservative candidate and it's most insidious since they do it from the supposed, inside!!!
They give me FReepizoid Fatigue!!! Because they're always futzing around with fearfulness and unnecessary anxiety generation on thread after thread!!!
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
We recalled Davis for far less reason.
Where are the Recall petitions. We did it once and we can do it again.
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