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.
“Increasing tax rates decreases tax revenues as the afflicted flee to a less onerous location...”
..or simply stop producing as much as they used to.
Sorry Girlyman...
Looks like you’re sol!
You called it right! Good call on the Hasta La Vista Baby slave to the Kennedy clan!!!
Exactly, but the key is breaking the unions. My wife works in CA state government and it is no mystery that easily 20% of the people in her professional-heavy agency, and probably a greater percentage in other agencies, are total deadwood and spend their days explaining why they are "too busy" or unable to do an assignment if they are not playing solitaire on their computers (no kidding, I have walked through the office areas and seen it).
As in private business, bankruptcy/collapse is the only chance at restructuring the contracts (unions) that burden the state. And we need to throw out the Dem legislators that hand out billions to the organizations that will employ them at multi-100K salaries when they are termed out. Giving those self-serving idiots/criminals another lease on life just postpones what is really needed.
Why would I care about saving a Ca state employees job when they could give a rats ass about me losing mine.
I’m still here in tax-hell SoCal. Must admit the weather and natural beauty and life quality still have a hold on me. But think about leaving and where to go every day. I would be sad to leave. New Mexico and Tucson are high on the list...
What happens to the initiatives that were recently passed? Anyone know? Like the “Safe, Reliable High-Speed Passenger Train Bond Act that just passed last year?
What happens when the voters vote for initiatives that cost money but the state has no money? Are they just put on hold? Or do they just fade away?
The state budget doubled in ten years. Now we can’t cut a thing without decimating every important service.
Sure Arnold. Someone doesn’t understand math indeed.
These bills are going to crash and burn. The populace is not happy right now.
The governor and the legislature are public enemies number one and two these days.
That's very good!
They create separate funds with special protections for their pet projects. Stem cell research, solar roofs, hi speed rail will all be fine.
But they'll shut off your water.
Looking forward to seeing all these props go down in flames. Vote to tax myself more and longer? Yeah, right. I can’t believe the Republicans caved for such a ridiculous so-called “compromise”.
I feel yer pain. The natural beauty of Cali is a strong attractant. I was born a mile from the beach in Monterey. The place is in my blood.
But, the sane and productive people are now outnumbered there by the insane and non-productive.
When the culture degraded to the point where we penalized the producers and rewarded the non-producers, we reached a point of no return on the dwindling spiral.
Alex de Tocqueville observed that a pure democracy will destroy itself when the mob begins to vote itself largesse from the public treasury.
Impoverishing the productive segment of society through excessive taxation causes them to either cheat, flee, or withdraw their production. This is what’s happening in California and other liberal states now.
I don’t recall the specifics of Arnold’s 2005 ballot measures now, but I do remember that they were all steps in the right direction, and were supported by conservatives at the time.
When every single one of them failed to pass, I knew that California had passed a point of no return. In my observation, the liberals were finally in a permanent majority, which couldn’t mean anything but an imminent demise of the state.
I decided that I’d rather not be a part of that collapse, and pulled out then.
What happens to the initiatives that were recently passed? Anyone know? Like the Safe, Reliable High-Speed Passenger Train Bond Act that just passed last year?
What happens when the voters vote for initiatives that cost money but the state has no money? Are they just put on hold? Or do they just fade away?
—
Projects like the HighSpeed Rail Job will just get in line for their chunk of the dough... they will suck hind tit tho. They won’t fade away, unfortunately
This state doesn’t have any priorities in case you haven’t noticed, except scare out the rich and businesses as fast as they can.. Crazy but facts speak louder than words here in HooplaLand.
Hate to tell ya, but those props were a sham just as this latest set is a sham. Arnold and his buddies feed the media with propaganda telling everyone that
they are “good for California” and that there is “bipartisan” support — when there isn’t. The liberal MSM accommodates him by repeating the mantra, ad infinitum.
Or else.
California got this way because of the Easterners who came here.
Looking forward to Obama's "Federal receiver"?
He'll tax us until the cows get lost.
Yes he does. He's just taking orders.
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