Don't follow California's path to ruin

Sacramento Bee ^ | January 3, 2010 | By David Ignatius

[Oldeconomybuyer]

What many state governments want is a federal bailout, which would free them of the consequences of overspending. It's a classic case of what economists call "moral hazard" – in that the bailouts would allow the irresponsible behavior to continue, rather than forcing a halt. One prominent economist argues that if the states were countries, the International Monetary Fund would grant relief only if it came with conditions that imposed fiscal discipline.

So will Washington become like California? Some would argue that has already happened, with the fiscal disaster masked by the federal government's ability to sell its massive debt cheaply and print money to pay its bills. And you see in Washington the same dysfunctional political process that's at work at the state level – Democrats who get elected by delivering services, and Republicans who get elected by delivering tax cuts.

The test case this year for Californiaization will be the health care bill. Democrats' desire to provide universal access to care is right, but the country has to pay for it. Indeed, we have to lower the cost of delivering health care so that paying this bill won't be a crushing economic burden.

We should judge Obama and Congress this year on whether they're paying for the promises they make – and providing real reform that cuts costs, rather than another political goody bag.

[Oldeconomybuyer]

[hoosier hick]

Basically, if California spent like they did as recently as 2006-2007, the budget would be balanced.

Also, what is lost in this article is how much of state expenditures are the result of unfunded mandates from Washington....

hh

[Gaffer]

Buh,buh, buh....but, the weather here is sooooo beautiful!!!! The City of LA and surrounding areas tells us the crime rates are lower! So it must be true, right?......We believe our illegals (uh, undocumenteds) deserve the berry berry best our taxes can provide. We want higher taxes and a government that extends every benefit to those who do not pay taxes..... We don't mind having to learn more and more Spanish (along with every Russian and Slavic dialog there this)....It's okay.....We have movie stars and palm trees. Did we mention the perfect weather?

[marktwain]

“There's Wisconsin, for example, which finished 2009 with a $2.7 billion deficit despite a technical requirement that the state balance its budget. Wisconsin's budget shortfalls have grown in every year but one since 1999, and its deficit per capita is four times that of California, according to an article last week by Todd Berry, a budget expert based in Madison.”

Notice how he treats The Wisconsin legal requirement for a balanced budget as a mere technical requirement. The question that should be asked there is: Why is Governor Doyle not in jail!

As long as we treat the legal requirements to balance budgets as mere “technical requirements”, we will not have balanced budgets.

[umgud]

If CA politicians could just find a way to get more money out of its citizens, they could solve all our problems.

[Gaffer]

Well, I agree with you about Wisonsin and its failings. However, in just looking at a 'per capita' basis the total dollar amount that has to be 'bailed out' is still not as great as that of California. Look, California is terminally sick if they don't change their ways. Add to that the huge, huge problem they have will illegals and their neverending spendthrift ways. They have this problem precisely because of their desirable location and climate causing every no-good in the country (and others) to flock to it. They further exacerbate it by illogically thinking they can 'legislate' their twisted liberal feel-good emotions instead of depending on hard work and real fairness.....in the end, the majority of Californians (at least it seems those voting) is 'let the rich' pay for our indulgences....we want to 'feel' good.

[Huskrrrr]

“If CA politicians could just find a way to get more money out of its citizens, they could solve all our problems.”

So true, politicians have used amazing creativity to disguise new taxes as “revenue raising”. If only they would apply the same creative energy towards cutting the budget.

[Waco]

And they say Wilson left Cal. with a surplus,,,right?

[Bernard Marx]

They have this problem precisely because of their desirable location and climate causing every no-good in the country (and others) to flock to it. They further exacerbate it by illogically thinking they can 'legislate' their twisted liberal feel-good emotions instead of depending on hard work and real fairness

Add the fact that the Democrat Legislature in Sacramento is owned by the trial lawyers and public employee unions -- teachers, prison guards, state bureaucrats, etc. -- and you're spot-on.

Freepers should remember that CA voters overwhelmingly approved Proposition 187, denying state services to illegal aliens. That measure was struck down by a FEDERAL judge, denying Californians the right to save themselves.

[Gaffer]

If I were the local honest authorities in the state, I'd pull the old Buford Pusser on'em....make them goddam judges occupy the offices selected by the sheriffs - in the local queer restroom.

Further, for the Ninth Circus, I'd make their jurisdiction about the size of a goddam postage stamp.....These judges' pictures and 'stats' need to be posted at every election poll throughout the WHOLE state.....