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.
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]