Posted on 12/14/2007 9:53:09 PM PST by NormsRevenge
The State Capitol is hemorrhaging red ink. The non-partisan legislative analyst's office (LAO) has released a report showing that the revenue shortfall from the budget just passed in August could exceed $10 billion. Fortunately, the governor and the Legislature established a modest $4 billion reserve or the deficit would be much higher.
How did we get into this mess? If this seems like déjà vu all over again, you're right. It's been just seven years since then Governor Gray Davis, who inherited a budget surplus, began to run up massive state deficits which were largely responsible for his being recalled. Moreover, he was replaced by a candidate who stressed, "Living within our means."
Simply put, the tax and spend crowd -- meaning the majority in the California Legislature -- aided and abetted by some like thinkers in the governor's office, put on their rose colored glasses, clicked their heels three times, and hoped for the best. The budget signed a mere three months ago includes a mass of generous assumptions that have failed to pan out. Examples include: the billion dollar sale of EdFund, a student loan program (which, if it is sold, may only collect $500 million) and increased property tax revenue, which failed to take into account a declining housing market and glut of foreclosed properties. Additionally, the LAO has been exceedingly generous in predicting the state's general fund revenues will grow about 3.5 percent this year. If that fails to materialize, the $10 billion hole may double. Of course, all this comes on top of recently approved bond debt of nearly $50 billion (which amounts to nearly $100 billion after interest payments) and another $50 billion in unfunded pension liabilities.
Already there are rumblings by the usual suspects that we must raise taxes. The LAO has suggested, among other strategies, eliminating the mortgage interest rate income tax deduction. For ourselves, we fail to see the wisdom of adopting a policy which will take a housing market which is already declining and put it into free fall. Sadly, many of the recommended "revenue enhancement" options don't seem to touch on the root of the problem which is unconscionable overspending by an irresponsible Legislature and a sometimes complicit governor.
During Governor Schwarzenegger's tenure, General Fund spending has increased 44%, a far cry from the "blowing up boxes" to make government more efficient, he expounded just four years ago. In 2007, according to the Tax Foundation, our "Tax Freedom Day" (the day Californians pay off their yearly federal, state and local tax burden) fell two days later then in 2006, on May 7th. This is a full two weeks later then 2004, Schwarzenegger's first full year in the Capitol.
The governor is a man of vision who wants to see great things for our state. However, he seems to have allowed his enthusiasm for immediate progress and improvement to cause him to lose track of their costs. We must find a way to say "NO" to the excesses of government spending as Governor Schwarzenegger sagely advocated just a few years ago.
It's not too late for the governor to show real leadership in dealing with this looming crisis. With his popularity again high -- especially relative to the Legislature -- Governor Schwarzenegger has an opportunity to finally realize one of his campaign promises.
According to the Public Policy Institute of California, (PPIC) over 50% of the population does not want to see an increase in taxes. This is the time to play up a bi-partisan issue that would resonate well with the governor's populist agenda.
The governor should use his clout to push a "Deficit Prevention Act" through the Legislature that pegs spending increases to population and cost of living growth much as the Gann spending limit once did. By assuring taxpayers and business of spending stability, and limiting the threat of new taxes, he would open the door to the return of economic vitality.
Time's a-wasting. The choice is Governor Schwarzenegger's, and what he decides may well define his legacy. Californians are desperately hoping his legacy will not be a sequel, "Gray Davis II.
Here are two simple fixes that would go a long way to restoring fiscal sanity. First, stop all state services for illegal aliens except for federally mandated services. Second, raise the retirement age for public employees to 65.
why the many should pay for the mistakes of a few is beyond me..
or is it?
It seems odd that in a state where the legislature is nothing more than a lapdog for special interests,, ie: unions, be they teachers, prison guards, trail lawyers or whatever,, so many of those who continue to elect the same scroundrels don’t see that the effects of the latest binge of spending like drunken sailors, will eventuially touch all of us.,, in the wallets and in the not too distant future, it now appears.
The only thing standing between this prolonged, intensified and seemingly inevitable drive to turn this state into nothing more than EUrope West are the members of the Republican Party in the State Assembly and Senate.
Here’s hoping enough voters, taxpayers and legal citizens of this state finally get ‘it’, before we all do and have nothing to show for all the years our families worked hard to make this state what it once was, a beacon to the rest of the nation, and not just a bordello for cheap politicos and their operatives and string pullers..
The era of partisanship is over!
Regards
Arnold has been a disaster. RINOs act like libs and give the GOP a bad name. This state is lost. I hope I can get out before the tax hikes come.
Two words . . . Tom McClintock!!!
Regardless of party, I’ve never seen a politician that could NOT spend like a fool and think that taxes would bail them out.
Courtesy comment:
I like most blame the politicians but in the end it is the majority voters who have elected these klutzes to office.
There is no sanity in Kalifornia, that vanished almost 20 years ago when the selfish voters went on a me first spending spree.
Most of our Democrat politicians are the laughing stock of those states that are fiscally responsible.
Nothing is going to change except the next politician who promises to go in a different direction but yet continues to buy popularity by driving the state into a deeper chasm of indebtedness.
Kalifornia is so bad off that if it was patient in an old folks home there would be a big sign “Do Not Resuscitate”.
Things will not change until it impacts the goof ball voters so bad that they have to swallow their own selfish idealistic medicine.
If I was an employee in a Hillary Clinton type Socialist Kalifornia I would be very worried about my retirement and whether or not my job would be around long enough for me to retire.
Just the lowly opinion of a red state wannabe.
Just the lowly opinion of a red state wannabe.
Thanks for your comments.
It definitely isn’t prop 13’s fault , schools get more money than ever before, teachers are better paid than ever before, but no matter what, the state’s population continues to yield less and less when it comes to profiting from being exposed to past history and learning from it.
Sadly, a hard lesson will have to be taught again.
Obviously , the current liberal mindset so many so readily adopt by choice or not, many come to it thru indoctrination, the tool of tyrants, will have to be broken and revealed for its truth worthlessness and hollowness. It doesn’t seek to perfect a society for all, it seeks to establish and maintain two societies, one for those that have power and another for those who can only dream of having it.
All the rest of the bs about caring for each other is a lie that they continue to foist off on those too enfeebled to see thru the scams perpetuated on them by “their own”.
California taxpayers have proven over, and over, and over again that they SUPPORT this runaway spending on things like stem-cell research, and cradle-to-grave welfare for illegal aliens...
They’ve tried to finance the liberal welfare state on the backs of employers that have since fled the state.
Enviro lawyers make a mint sueing the state for everything under the sun, and all those “Alternative” energy pie-in-the-sky’s don’t come cheap...
Nothing short of complete bankruptcy is going to change this trend, I fear.
It’s time for a little tough love in California...
A state ruled by special interests and illegal aliens is ungovernable.
I would like to take this opportunity, once again, to apologize to Tom McClintock and all my fellow Californians for voting for a Pseudo Con. It’s a mistake I won’t make again.
My wife does Psychiatric research for a major University here in Kalifornia.
Obviously I have to be somewhat discreet in what I say on a forum.
With that said she accepted several studies dealing with obesity in schools.
We temporarily moved to one of the poorest counties in American and one of the poorest towns in that county.
The majority of the towns citizens 97% are Hispanic.
More than 87% of the students in the local school are considered below the poverty level.
Surprisingly, the school has over the last couple of years improved it’s state test scores from 5.3 to a very good 7.8.
Students are not allowed to speak Spanish while on the school grounds or in the classroom.
There is lots of emphasis on reading, math and history.
Many of the teachers do not live in the community.
Most of the teachers say the reason for the improvement in test scores is that the poor kids are not corrupted by gang mentality like many children from the surrounding cities and towns.
Yes, the teachers have good jobs but many drive long distances to work in this school district.
However,just as many school districts, there are lots of high paid management.
Many school districts build new schools thinking that will improve the quality of education.
They buy the latest learning devices and yet year after year fall far short of educating their students to minimum standards.
One reason for our schools big improvement in state test scores has to do with discipline.
Kids are expected to follow the rules and of course there is no corporal punishment but the kids know if they get in trouble at school their butts will catch hell when they get home.
I asked the superintendent how many children had been suspended for drawing stick men with guns and he just laughed and said “ that kind of crap is for schools with an airhead mentality”.
I find it somewhat odd that Kalifornia prospered greatly right after the big influx of Okies during the dust bowl days.
Those citizens have died off leaving a population who’s minds are more set on entitlements than being self sufficient.
Kalifornia is truly on life support and I am afraid that many are ready to pull the plug.
Just the lowly opinion of a red state wannabe.
The author of the article seems to focus on the costs of immediate progress and improvement as the main shortcoming in Arnold's plan for the state.
It so much minimizes the tremendous progress and improvement to our lives brought about by capitalistic pursuit of technology and the educational system which supports that pursuit. It is not the state's role to provide progress and improvement. The state just needs to get out of the way while energetic people motivated in part by selfish gain provide the breakthroughs that make all our lives better.
None of Arnold's nonsense, even if we could afford it, has any chance of improving Kalifornia.
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