Posted on 04/29/2002 3:13:02 PM PDT by ElkGroveDan
Remember last fall, when Sacramento predicted that the state budget deficit might hit $10 billion? In January, state officials revised their estimate upward to $12 billion, and then to $17 billion in March.
Upon further investigation, Gov. Gray Davis and his accounting wizards have had to readjust those figures once again. This time, they say, the budget hole will probably fall in the $20 billion to $22 billion range.
Or something like that.
The final damage is hard to estimate because Davis, instead of getting serious about scaling back state spending (which has swelled by 36 percent under his watch), has decided to play the accounting shell game.
By fudging numbers and cooking the books, Davis consistently presents overly rosy budget scenarios, thus postponing his and our day of reckoning.
Davis` opponent in November`s election, Bill Simon, has repeatedly pointed out the folly of that approach. Reactive budgeting, Simon warns, forces leaders to chase after revenues and scramble at the last minute.
Davis should know a thing or two about the perils of postponing problems today in return for crises tomorrow. It was his procrastination that gave Californians last year`s energy fiasco, which contributed greatly to this year`s budget disaster.
Now Sacramento doesn`t have enough cash on hand to pay its bills, so state Controller Kathleen Connell has proposed borrowing $7.5 billion (possibly as much as $11 billion) for the summer. That`s on top of the $12.5 billion in bonds that Sacramento plans to sell to repay the general fund for last year`s energy purchases.
Clearly, Davis hopes that he can borrow and bob his way out of the budget mess until Nov. 5, then deal with the consequences after the election while hoping the economic recovery is stronger and faster than most economists believe.
As a political strategy, it might work, but only if voters don`t catch on before then. Economically, it`s dangerously shortsighted, and it will cost the state millions in interest and bond-insurance fees.
It`s a gamble, and has no other purpose than Davis winning re-election. It`s appalling that he would take such a selfish course at the expense of the people of California. It`s even more appalling to think the Legislature will go along with it.
And it`s downright scary that voters may ratify this high-stakes gamble come November.
I didn't see a sarcasm tag, so I'm going to believe that you were serious - seriously gullible (either that or you're a Rat party hack).
Lets say that you're boss didn't give you a raise for 10 years (price controls on the purchase price of energy). During that 10 years, you got married, moved out of your parents house and bought a house, and had three kids (the cost of energy went up). Your company refused to allow you to take on a part time job, and there was no overtime to help increase your take home pay (the environmentalist wackos prevented the power companies from building nuke plants, prevented exploring and drilling new oil wells, and since the purchase price for energy remained constant, you could not afford to build more efficient fossile fuel power plants).
Over time, as the cost of living increased each year, and without being able to increase your take-home pay, you find yourself unable to meet the monthly bills and are already in debt up to eyeballs. You'd probably blame the phone company, the cable company, the mortgage company, the grocery store owner, Walmart and Ford. NOT - It was you boss's restrictions that caused you the problem, not the businesses.
The same applies to the power companies servicing Kalifornia. You can't cap the purchase price, without subsidizing the supply side. Well, last summer was the subsidy, and it will continue until power companies are able to do what they do best - explore for new sources of energy, building newer more efficient plants, and charge customers the going rate at the time consumption takes place.
Much like the property tax caps, its all gonna come home to roost. Nothing like putting your head in the sand. Freeze property taxes so nobody realizes we're spending money like it was going out of style.
For petesake, wake up and smell the coffee
"He's fleen' the interview, he's fleen' the interview."-(Marge as Jerry Gustafuson drives out of the car lot.)
We have our political problems here in Wisconsin but I'm glad I don't live in Californistan. Hopefully in twelve hours we will have a REPUBLICAN County Excutive in Milwaukee County. If we don't; I will be setting off for some desert island in the South Pacific. Keep your fingers crossed. Milwaukee county went 60% for Algore in 2000. I believe we have narrow chance to win this thing.
What a gamble! With our state! With our money!
Dump Davis!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.