New [California] budget denies reality, worsens the problem

Sacramento Bee ^ | September 5, 2002 | Dan Weintraug

[snopercod]

Everybody knows that the floor of a state Legislature is no place to look for people who are in touch with reality. But the Assembly's version of the state budget, passed last weekend after a two-month delay, amounts to a fantasy on top of a pipe dream above a flight of fancy.

[snopercod]

Two questions:

1. When will the people of California demand that Davis relinquish his emergency powers, granted by the legislature almost two years ago?
2. When will the people of California demand that the Constitutional provisions against borrowing more than $300,000 without a vote of the people be followed?

If you want to know how that National Socialists took over Germany while the "good germans" stood by and watched, you have a perfect example right in front of you.

[snopercod]

At least one writer in CA knows that the emperor has no clothes.

[crypt2k]

The rest of American, take note: President Davis.

Somehow these teflon guys always slide their way to the top.

[crypt2k]

At least one writer in CA knows that the emperor has no clothes.

Yes but will he have a job in six months?

[Uncle Miltie]

"New [California] budget denies reality, worsens the problem"

"DEA raids California medical marijuana farm just before harvest"

Whoa, dude! Reality is gonna suck!

[Dog Gone]

Bill Simon may vote for Gray Davis. Who, in their right mind, would really want to be Governor next year?

[j271]

Looks like the liberal strategy will be to survive past the election and then pile on the tax increases.

California taxpayers will be hit over the head with the threat of state insolvency until they capitulate to massive tax increases.

Therefore, IMO, the best strategy is to get the public ready to accept state insolvency. Scenarios for getting Californa through insolvency and back to fiscal health need to be discussed and debated openly in the media.

It looks like without forcing insolvency California's demand for taxpayer dollars will never be satisifed.

[snopercod]

The rest of American, take note: President Davis.

He said he wouldn't run. Then yesterday he said that he didn't mean it. It could happen, considering the women of America always vote for the canditate with the nice hair.

Correction: Weintraug=Waintraub

[snopercod]

Yes but will he have a job in six months?

I'm betting that he will, given the past history of California.

I don't feel too bad about that. There is Karma in Davis having to jump naked into the financial cesspool that he himself created.

[Ernest_at_the_Beach]

There is Karma in Davis having to jump naked into the financial cesspool that he himself created.

I am beginning to agree!

Man it is going to be painful for a lot of people though!

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[randita]

What the budget does most is borrow: $4.5 billion from a long-term tobacco litigation settlement, $1 billion from a road-building fund, $200 million from the beverage container recycling fund, and so on.

He forgot to mention that the "so on" includes CalPERS.

[tubebender]

When will the people of California demand that the Constitutional provisions against borrowing more than $300,000 without a vote of the people be followed?

Does the Cal constitution require a balanced budget to operate ?

[snopercod]

Does the Cal constitution require a balanced budget to operate ?

Sorta'.

ARTICLE 13B GOVERNMENT SPENDING LIMITATION SEC. 1. The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article. [Lots of loopholes]

Of course, when an "emergency" has been declared by the governor, as is still the case in California, he can spend whatever he wants.

(2) In the event an emergency is declared by the Governor, appropriations approved by a two-thirds vote of the legislative body of an affected entity of government to an emergency account for expenditures relating to that emergency shall not constitute appropriations subject to limitation. As used in this paragraph, "emergency" means the existence, as declared by the Governor, of conditions of disaster or of extreme peril to the safety of persons and property within the State, or parts thereof, caused by such conditions as attack or probable or imminent attack by an enemy of the United States, fire, flood, drought, storm, civil disorder, earthquake, or volcanic eruption.

Davis is, for all intents and purposes, a dictator. Now Hitler had to get 2/3 of the Reichstag to amend the German Constitution through an "Enabling Act".

GLEICHSCHALTUNG

The plan was deceptively simple and had the advantage of cloaking the seizure of absolute power in legality. The Reichstag would be asked to pass an “enabling act” conferring on Hitler’s cabinet exclusive legislative power for four years. Put even more simply, the German Parliament would be requested to turn over its constitutional functions to Hitler and take a long vacation. But since this necessitated a change in the constitution, a two-thirds majority was needed to approve it.

Davis simply had to declare an "emergency" to take over. Some California Code Sections:

8627. During a state of emergency the Governor shall, to the extent he deems necessary, have complete authority over all agencies of the state government and the right to exercise within the area designated all police power vested in the state by the Constitution and laws of the State of California in order to effectuate the purposes of this chapter. In exercise thereof, he shall promulgate, issue, and enforce such orders and regulations as he deems necessary, in accordance with the provisions of Section 8567.

8627.5. (a) The Governor may make, amend, or rescind orders and regulations during a state of emergency that temporarily suspend any state, county, city, or special district statute, ordinance, regulation, or rule imposing nonsafety related restrictions on the delivery of food products, pharmaceuticals, and other emergency necessities distributed through retail or institutional channels, including, but not limited to, hospitals, jails, restaurants, and schools. The Governor shall cause widespread publicity and notice to be given to all of these orders and regulations, or amendments and rescissions thereof.

(b) The orders and regulations shall be in writing and take effect immediately on issuance. The temporary suspension of any statute, ordinance, regulation, or rule shall remain in effect until the order or regulation is rescinded by the Governor, the Governor proclaims the termination of the state of emergency, or for a period of 60 days, whichever occurs first.

8628. During a state of emergency the Governor may direct all agencies of the state government to utilize and employ state personnel, equipment, and facilities for the performance of any and all activities designed to prevent or alleviate actual and threatened damage due to the emergency; and he may direct such agencies to provide supplemental services and equipment to political subdivisions to restore any services which must be restored in order to provide for the health and safety of the citizens of the affected area. Any agency so directed by the Governor may expend any of the moneys which have been appropriated to it in performing such activities, irrespective of the particular purpose for which the money was appropriated.

8629. The Governor shall proclaim the termination of a state of emergency at the earliest possible date that conditions warrant. All of the powers granted the Governor by this chapter with respect to a state of emergency shall terminate when the state of emergency has been terminated by proclamation of the Governor or by concurrent resolution of the Legislature declaring it at an end.

But it can't happen here, of course.

[randita]

Davis is, for all intents and purposes, a dictator. Now Hitler had to get 2/3 of the Reichstag to amend the German Constitution through an "Enabling Act".

Davis, despite numerous hissy fits, has still not figured out a way to get 2/3 of FERC. Lawyers for the state are working feverishly to accomplish that.

[snopercod]

It's a good thing Davis doesn't have an Army!

[heleny]

Postpone tough decisions until a time when they presume they will be better able to withstand the heat that will accompany their actions.

Absolutely. Gray Davis will postpone some budget cuts until after the November elections, according to A Budget Update from the University of California President Richard Atkinson, dated Sept. 2002.

...
On September 5, Gov. Gray Davis signed the 2002-03 California State budget. However, unlike in most years, the signing of the budget has not brought the budget process to a close.

The spending plan adopted by the legislature authorizes the governor to make up to $750 million in further reductions to State operations, at his discretion. The budgets of individual State agencies may be cut up to 5 percent in order to achieve this level of savings. ... the budget gives the governor until January 2003 to make these spending reductions.
...
Moreover, there are estimates of annual State budget deficits in the range of $10 billion to $12 billion for the next several years. As a result, the Department of Finance has asked all State agencies to consider scenarios for accommodating a possible budget cut of up to 20 percent in the 2003-04 fiscal year.

[Saundra Duffy]

THE DEMOCRATS' FISCAL TRAIN WRECK The fiscal train wreck caused by four years of liberal Democrats' reckless overspending, with no regard to the diminishing economy or the effects of their pro-labor/job-killing legislation, has now happened. Republicans repeatedly warned that such a "perfect storm" would occur without responsible action, and those predictions have now come true.

It's about time that Governor Davis has recognized that California is in the midst of an unprecedented fiscal crisis. Republicans warned of this "post-election surprise" last summer. The Governor now says he will invoke his emergency powers to freeze spending as much as possible - why didn't he take this step sooner?

The Governor is proposing $5 billion in "savings," not all of which he says are cuts. He will make the details of this proposal available in the days before his December 9th Special Session of the Legislature.

Republicans are cautious about his proposal absent the details - until we see them it is too soon to offer specific comment.

However, we are concerned that Democrats may propose majority-vote tax increases to solve this problem - they are rumored to be reconsidering their efforts to raise the car tax again. This is a step that would likely be challenged in court.

Republicans hope that budget negotiations during this Special Session will address the earlier unfulfilled commitments Democrats made last summer. So far, promises to make 5% across-the-board reductions in state spending - which would save nearly $300 million, and the "golden handshake" early retirement option for state employees, which would save $285 million - have not been enacted.

As we have said before, the Governor has gotten the budgets he wanted for the last three years. Those budgets overspent - we now have a deficit of huge proportions. However, one thing is absolutely clear:

Republicans believe the solution to this problem is not to raise taxes. We don't see any reason to punish taxpayers because the Governor and the liberal Democrats majority have recklessly overspent state tax dollars.

Quite simply, we must restore fiscal discipline and responsibility to our state government.

Republicans are concerned about reductions to education if those cuts will harm frontline classrooms. We don't believe that our children should have to shoulder the burden of Democrats' overspending - until we all agree that all other excessive spending has been trimmed.

We agree that the problem is much larger than projected. Last year at this time, the non-partisan Legislative Analyst projected a $10-$12 billion deficit. It turned out to be almost $24 billion. Next year's $21 billion deficit now projected by the Leg Analyst may be higher.

The enormous deficit, much larger than earlier projections, is due in large part to reckless government spending by liberal Democrats who have become arrogant with power. They have controlled both houses of the Legislature as well as the Governor's Office for four years, and in that time have repeatedly expanded state spending with no regard to the impact on the bottom line. Quite simply, it is time to restore fiscal discipline and responsibility to our state government.

We are ready to work with our colleagues in a bipartisan manner, but we must also address opportunities to consider proposals that will improve California's economy. We must work to create jobs, spur investment, improve working families' incomes, and generate more revenue - without raising taxes.

[snopercod]

We don't believe that our children should have to shoulder the burden of Democrats' overspending - until we all agree that all other excessive spending has been trimmed.

It is my understanding that the major increases [30%+] in the California budget under Davis mostly went to state employee retirement plans. Teachers et.al.

If that is true, there is absolutely no way (politically) that those increased will be recinded. California is screwed, financially speaking.

From May, 2001: CALIFORNIA'S BLACK-RUPTCY [IBD Editorial]