Posted on 11/07/2008 2:35:38 PM PST by SmithL
Well, it was bound to happen sooner or later. Gov. Arnold Schwarzenegger and an ideologically polarized Legislature had danced around California's budget mess for years, running up deficits even during prosperous years and covering shortfalls with hide-the-pea bookkeeping and phantom revenues.
Their current budget, enacted just a few weeks ago after a record-long stalemate, was packed with even more gimmicks and based on a revenue forecast that wasn't worth the paper on which it was printed. And on Thursday, Schwarzenegger – who was elected five years ago on his pledge to end "crazy deficit spending" – made it official: The budget is already more than $11 billion upside down.
Schwarzenegger did what politicians do when adversity strikes – blamed circumstances beyond his control. "In the six weeks since I signed our last budget, the mortgage crisis has deepened, unemployment has increased, and the stock market has lost almost 20 percent of its value," he told reporters as he called for sharp spending cuts, hitting education and welfare the hardest, and $4.7 billion in new taxes, including a 1.5-cent boost in the sales tax.
Yes, a sour economy makes the problem much worse. But the crisis is about twice as big as it would have been had Schwarzenegger not played political games rather than doing the job he promised to do. Other recession-plagued states that handled their finances more prudently are not seeing nearly the difficulties that beset California.
Schwarzenegger's first act as governor in 2003 was to reinstate a popular cut in property taxes on cars – which now costs the state $6 billion a year in indirect payments to local governments. In the first months of his governorship, he unilaterally increased spending by about $3 billion year to cozy up to Democratic legislators....
(Excerpt) Read more at sacbee.com ...
I think is time to raise taxes some more..The money class will just pick up, leave and no sane business will come here. These idiots have a goal of achieving sister state status with the nutcases in Michigan. No wonder Texas is booming.
Illegal aliens have taken over and California, practically a Sanctuary State. No coincidence, I’m sure, that Villagaroso (sp?) was standing with Obama today. And now I’ve read somewhere that Obama may be considering pro-illegal alien loving L.A. Police Chief Bratton for heading up Homeland Security. Sadly, McCain would have chosen no wiser.
Dan Walters - Sacramento’s resident shill for higher taxes. Even as McClatchy goes down the crapper.
I used to think he was sensible but he now sounds no different from a dem politician. Let ‘em have their higher taxes and see what that does to the deficit - people will go to the internet, etc. They won’t reach their goals and they’ll have a deficit again.
So true. The Michigan MSM has been wild with speculation that a governor with one of the lowest approval ratings in the US (8-12%, depending on who you ask), is under serious consideration for Energy Secretary. Maybe they mean she'll actually be the secretary for someone competent...
Just sell the bottom third of Kalifornian to Mexico for 50 billion
Problem solved.
OK, the LA Lakers may have to convert to soccer but they would be the largest soccer players in Mexico
Returning registration fees on cars to a normal (high) level after they were tripled by Gray Davis - Not a tax cut Dan. Nor does it "cost" the state anything.
Time to make some cuts. It will hurt, but it is time.
And these politicians have the gall to criticize business execs. The State House makes Enron look like a convent. Every one who voted for this intentionally fraudulent "budget" should be sent to prison for life.
All of the blue states are going to hit severe finiancial problems, if not budget meltdowns. Anyone expect anything different?
He is pretty sensible, I've met him and heard him speak, and he knows alot about CA politics. But, the undercurrent of every single article he as ever written is that higher taxes are always part of the solution.
The Republicans are poised to hold the line on taxes, as they did in the budget battle, because they have nothing to lose.
Look for Arnie to try to pick off some lame duck Reps that just got un-elected and will be leaving office in January. He'll promise cushy board appointments in return for votes on his massive tax increase. The RINOs aren't done with us yet.
Note the rachet effect - when times are good, spend money on more goodies; when times are bad, raise tax rates; when times get good again, tax receipts rise, so spend money on more goodies...; wash, rinse, repeat.
Blah blah, another “raise taxes and cut spending” guy straddling the middle. The real problem is that the last time we had a budget crisis, they punted and put a bond measure on the ballot to cover the shortfall. It passed, but times were good then, so they took the money, spent it on new spending, covered the difference with new tax receipts, and pretended all was well.
The only alternative now is to cut spending. Lay off people in the administration. I would bet a guy like Jack Welch could find people to fire.
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