Posted on 04/08/2009 8:46:59 PM PDT by NormsRevenge
WOODLAND HILLS - As he launched a radio ad campaign Tuesday for his budget measures on the May 19 ballot, Gov. Arnold Schwarzenegger said failure to approve the package would worsen the state's already-dire fiscal crisis.
"If they don't pass, we will be facing a $50 billion problem," Schwarzenegger said at a meeting with Daily News editors and reporters. "It will mean massive cuts in education, hospitals, prisons. These are things people don't want to see cut."
Schwarzenegger's campaign committee, Budget Reform Now, began its advertising campaign Tuesday for the six ballot measures - Propositions 1A, 1B, 1C, 1D, 1E and 1F - with a radio ad that highlights the impact of the budget crisis on state services.
The campaign has raised more than $6 million so far, officials said, to finance the print, radio and television campaign. The governor has also held public appearances and town town hall meetings around the state to rally voter support.
"When we are able to explain to the people, they get it," Schwarzenegger said. "We know people are furious. But once we explain to them what we are trying to do, they support it."
Schwarzenegger said the proposals are similar to ones that past governors have sought to limit state spending.
"None of us like raising taxes," Schwarzenegger said. "(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem."
The measures were part of a compromise developed by the governor and lawmakers to pass the budget this year.
The package enacts a wide range of budget reforms including extending tax increases, creating a bigger rainy day fund, borrowing against future lottery earnings and capping raises of top state officials when the state is facing a deficit.
Most of the attention and opposition has been generated against Proposition 1A, which extends new tax increases for up to two years to balance the budget, generating about $16 billion.
Some public unions oppose the measure partly because of concern it would limit growth and salary increases for the state work force.
The Howard Jarvis Taxpayers Association has come out against Proposition 1A, saying it's a tax increase that does nothing to rein in spending.
"It has a built-in loophole allowing them to increase spending if they get more revenue," said Jon Coupal, president of the organization.
"This is just another shot of heroin for addicts. Until there is a realization that the taxpayer capacity to pay is limited, they will continue to overtax and say the sky is falling. We just don't buy it."
But the governor argued the measure also includes provisions to establish a rainy-day fund - which sets aside revenues in boom years to cover the extra costs in down years. Schwarzenegger said it also contains a cap on spending.
"When you get extra money, they will always spend it," the governor said of the Legislature. "That's the way it's always been. It's just human nature. That's why this budget reform is historic."
Joel Fox, a Republican consultant and former president of the Jarvis association who accompanied Schwarzenegger at the meeting, supports the measures.
"This is a flexible cap that will survive," Fox said. "None of us like taxes. But, if you look back, all our taxes have been raised to fund existing programs, not pay for new programs."
One option the governor says is not on the table is allowing the state to collapse.
"The cost of inaction is letting California go off the cliff. We still have all those contracts to honor and a federal receiver could come in, and no one wants that," said Assembly Minority Leader Mike Villines, R-Fresno.
Despite bipartisan agreement in Sacramento over the measures, a poll by the Public Policy Institute of California released in March found that all but the one limiting public officials' raises have an approval rating under 50 percent.
Schwarzenegger said he also felt he has a responsibility as governor to make sure that services - from education to health care - continue to be offered.
"When I was running, I opposed taxes. I despise taxes," Schwarzenegger said. "But when you get in this office, you see things differently. You realize how important these services are to the people."
Also, he said, the need for government services has increased as the economy has declined.
Schwarzenegger said he has held town hall-style meetings where he asks people where they would cut funding, and everyone wants to save services like schools, hospitals and prisons. Tax increases, in such cases, become the only option.
Schwarzenegger also rejected proposals to raise money by legalizing and taxing marijuana or selling state assets such as San Quentin prison.
"You hear those ideas all the time, you could make maybe $1 billion and we have a $50 billion problem," Schwarzenegger said. "When you get down to it and people say we should legalize marijuana, allow oil drilling or sell San Quentin, it is a ridiculous notion."
The governor said he also is aware of voter anger and frustration, but he hopes the campaign can appeal to voter reason.
He said he was prepared to stand up for legislators - primarily Republicans - who support the package and face threats of recall or serious opposition in their re-election.
No, like is too mild a word. Taxes to liberals are like pornography to a teenage boy. They'd die without it.
C’mon, back, Off-White. All is forgiven.
ROFL! He is such a pathetic spineless girly man liberal dolt!
?
The distinguished former Governor Davis, the last fiscal Conservative (*snicker*). Y’know, Off-White.
“It will mean massive cuts in education, hospitals, prisons. These are things people don’t want to see cut.”
Just eliminate them all and solve the problem!
"Will be"? There are already 1,000 native born Americans a day pulling up stakes and high tailing it out of California (my home state).
California ranks dead last among the 50 states in polling of business people across the country.
I moved my own business and my family out of Cali three years ago when the voters rejected Arnold's first ballot initiatives. Those initiatives were common-sense, conservative measures which could have pulled California out of the nosedive, but no, the people had to have their pie.
That was enough for me. Handwriting on the wall.
” Then take out the ax and fire 1 out of every 4 government employees”
Half or more would be better!
I was watching my home "value" rising in 1999 and 2000. While I was thrilled with the higher valuation, I also realized that each increase was reducing the number of buyers that could qualify. I didn't want to price myself out of being able to leave. The house that I purchased in Aug 1983 for $105,000 was sold in Feb 2001 for $242,000. Subsequently, the house could have sold for nearly $500,000. I'm pretty sure the current value is fairly close to what I received. That's fine. I own my house in Idaho...free and clear. I purchased another small house with my tax refunds after the Bush tax cuts in 2004. That house has appreciated about $35,000 since I purchased it.
None of those initiatives would have changed the fiscal situation. Prop 76 did authorize even more borrowing, though.
Why not? People from all over the country moved here and did it to California.
what a disgrace! The state of Ca. government spending has literally doubled in trhe past 10 years. Governor, cut back just like private industry must. You are histroy, dude...kiss your politcal ass goddbye! audious...
I’m taking 2 aspirin, please don’t call me in the morning...
“None of us like raising taxes,” Schwarzenegger said. “(But) anyone who says you can solve this without raising taxes is hallucinating, is on drugs or has a math problem.”
Schwarzenegger has a reality problem. I’m not hallucinating or on drugs and I don’t have a “math problem”.
The state government has a SPENDING problem that is bankrupting the state and its citizens. The state already has practically the highest taxes in the country.
CUT THE DAMN SPENDING YOU FREAKING MORONS!
Joel Fox, a Republican consultant and former president of the Jarvis association who accompanied Schwarzenegger at the meeting, supports the measures. "This is a flexible cap that will survive," Fox said. "None of us like taxes. But..."
Despite bipartisan agreement in Sacramento over the measures...
Yes. I absolutely MUST be hallucinating.
Tequila shots for me! Then aspirin! LOL.
Joel Fox has joined the enemy — again.
Jon Coupal and the HJTA are fighting against Prop 1a, along with a few others.
There is no “bipartisan” agreement, although our spineless directionless CA GOP is so inept that they can’t decide whether to oppose or support it without
first calling a meeting and voting on it — which won’t happen until April 18th.
WASS!
I'm tired of providing taxes used to infringe my right to keep and bear arms. Let the public employees eat cake.
"It has a built-in loophole allowing them to increase spending if they get more revenue," said Jon Coupal, president of the organization.
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