California: Breaking budget impasse tough in election year

The Contra Costa Times ^ | Jul. 10, 2002 | Alexa H. Bluth

[Ernest_at_the_Beach]

SACRAMENTO - As the state swam in cash in past years, California's Democratic legislative majority offered pet projects and tax breaks to lure Republican votes needed to pass a state budget.

But this year, as a budget impasse drags into its 10th day, the situation is hardly that simple. It's an election year with Republicans trying to unseat Democratic Gov. Gray Davis, and lawmakers are scraping to fill a $23.6 billion hole that is more than a fifth the size of the entire budget.

[Ernest_at_the_Beach]

The $23.6 billion hole is from the Davis mismanagement of last summer's power crisis!

And it could happen again this summer because power plants are not being constructed and others are not being allowed to run!

The plants at huntington Beach are not yet running because of City and State obstruction tactics

[Ernest_at_the_Beach]

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[Carry_Okie]

"There isn't any money," said Sen. Steve Peace, D-El Cajon.

Translation: 'There isn't any money that we can get without layoffs of State workers.'

Peace said Democrats have said "they believe that we've cut to the bone,"

That's only a skin-peel, Steve, The flab is under the skin.

Try liposuction.

[L,TOWM]

They'll close the gap. All CA employees are getting paid minimum wage until there is a budget. Look for them to get it together next April...

After no State workers are around to get their minimum wage checks for three or four months. :-(

[NormsRevenge]

Tsk Tsk Tsk!!! The Kaliforni DemoRat Socialist Commies would like you all to cool it. They're working on it, OK :-? LOLOL

Hold Out Republicans, Don't Bend.
DUMP DAVI$ & the Den of Socialists

GO SIMON

[Ernest_at_the_Beach]

ROFL!

Nicely said!

[goldstategop]

The Rats don't have any bribes to offer RINOs in the Assembly. Apparently buying off four of them in the Assembly is more costly than buying off one State Senator. There's no incentive for Assembly RINOs to cross their party when the Rats can't offer any inducements. And if they could find inducements, the Rats would lose votes on their own side of the aisle. Bottom line: don't look for the budget stalemate to be settled anytime soon.

[Ernest_at_the_Beach]

Good!

[Carry_Okie]

Isn't it amusing to hear the Slave Party talk about budget negotiations as if spending were the only solution to any problem?

[goldstategop]

If only there were money to spend! That is their problem.

[Robert357]

The $23.6 billion hole is from the Davis mismanagement of last summer's power crisis!

Actually to be fair, it is from overly optimistic revenue forecasts, too low a reserve fund, the power crisis, the inability to say "no" to groups wanting more money from the state budget, and a host of other things which can be summarized as "lack of leadership."

[goldstategop]

Exactly the case Bill Simon's been making to change horses at the Statehouse in midstream.

[Cousin Eddie]

The budget shortfall has very little to do with the Davis' energy mismanagement.

It's primarily driven on his (and the legislature's) spendthrift ways. Budgets in the last few years were growing at double digit rates while inflation remained in the 1-2% range. They basically counted on the capital gains tax receipts (from all of the dot.bomb zillianairs) to be a permanent fixture. Anyone with half a brain would know that it was unsustainable. Permanent expenditures should be based on permanent receipts. It's like the guy (making $50k per year) who wins $4,000 in Vegas going out and buying a house with a $4,000 per month mortgage payment. You're fine for the first month, but then what?

[Carry_Okie]

The budget shortfall has very little to do with the Davis' energy mismanagement.

True only in the short term. The interest on the bonds is significant and will only grow.

The biggie was the class size reduction mandated by the voters. It didn't work, exactly as predicted. What happened is that there were more openings in good schools and the good teachers from bad schools left to fill them. That left bad schools with a more unqualified teachers. Test performance barely improved and most of that was due to the end of bilingual education (which the union fought every step of the way).

Class size reduction screwed the poor, exactly like every other Slave Party program does. They won't need Democrats if they don't need State assistance. Workers won't need Democrats if they don't need State jobs.

That is the essence of indentured constituency.

[daviddennis]

What are they doing to the plants in Huntington Beach, Ernest?

(No wonder nobody wants to build or run power plants in California - if you can't run them, what's the point?)

As I recall, we had a $12-billion odd hole from the power crisis; the rest is more spending increases such as the raise for the prison guards union after they gave Davis a nice contribution.

Only in government finance is a 22% increase in the budget called "cuts". I don't know how those wacky government folks think they can ever keep spending down. (22% = $80 bln last year, $98bln this year).

I still want to see a spending freeze - that is, a real spending freeze. $80bln this year, $80bln last year. Considering that we had a 1999 budget of $60bln, that should be more than adequate.

D

[Gophack]

You're mostly right. Davis and the Democrats were like children in a candy-shop when they took over the Governorship in January of 1999. They spent and spent, racking up huge increases and no cry wolf when we need to go back. They call it a cut, but had they increased spending at the rate population increases (which I think has been 5% since he took office), we would have a SURPLUS!!!!!

However, Davis' failure during the energy crisis DID contribute to the shortfall of cash that the Controller had to take $7.5 billion in short-term loans in May to simply pay the state's bills.

Davis is a failure all the way around, and the Democrats in the Legislature have enabled him to drive our great state into financial ruin.

Dump Davis!