Stalemate Ends But Not Deficits (California Political Class Lack Will To Pass Balanced Budget Alert)

Sacramento Bee ^ | 08/22/2007 | Dan Walters

[goldstategop]

The most important thing about the stalemate was that it failed to accomplish the one thing it should have done, which was to force the governor and legislators of both parties to own up to the state's precarious finances and take some concrete steps to improve them.

Although Schwarzenegger has pledged to veto about $700 million in spending to bring the budget into operational balance, it's a fiscal house of cards. The budget itself is based on unrealistic assumptions, especially on the revenue side of the ledger, and much of his supposed spending reduction is just bookkeeping sleight of hand that will do nothing to close the chronic gap between income and outgo.

Once the veneer is stripped away, the budget is probably $2 billion-plus out of balance this year and the "structural deficit," as it's been dubbed, may be $5 billion or more next year as the economy cools and revenue flattens. Republican senators originally said they were holding up the budget to address that structural problem, but in the end they settled for some minor stuff that does almost nothing about it.

[goldstategop]

California's political class lacks the will to pass a balanced budget. The Governor refuses to advocate one, the Democrats won't take the state off autopilot spending and the CAGOP is powerless to get common sense reforms adopted in Sacramento. Yesterday's events were just political theater; the structural deficit whereby the state spends more money than it takes in revenue remains unaddressed. By passing this budget, the hard choices have been put off another year. The only good news is the vast majority of Republicans in the State Legislature voted AGAINST the phony budget and business as usual even though they were sold out by party leaders who believed they got what they realistically could even though it fell far short of their proclaimed objective. That dynamic will return in even greater force next year.

"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

[athelass]

Democrats believe that if they resist spending cuts long enough, Republicans eventually will agree to raise taxes. Republicans believe that if they resist taxes long enough, Democrats eventually will agree to make deep cuts in spending. The only certainty is that the deficits cannot continue forever.

If Arnold were a real leader he would have put real pressure on them. They know he's full of it so they ignore him. 67 days? I remember when the budget fight went on so long we got vouchers instead of paychecks. I wonder what it will take before Californians figure out the Dims shouldn't be in power here any longer? Our economy is too big to be handled this badly.

[goldstategop]

It probably take an Argentine-style economic meltdown to destroy the state's liberal ruling class. As long as they can muddle through, there will be no real accountability.

"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

[JohnLongIsland]

the socialists in california, along with my home state, are more entrenched than in china or russia. just like in george orwell’s 1984: big brother is watching over you arnold and he must be obeyed.

[Nomorjer Kinov]

I wonder what it will take before Californians figure out the Dims shouldn't be in power here any longer?.

Nothing. California has successfully imported enough rent seekers who will reliably vote to keep in office those who promise to take the most from the makers to spend on behalf of the wanters.