Replies

"We've had to jump through hoops to make the governor's budget work," Davis said as he sold the RAWs in July 1994. "He seems to think he can balance a budget on wishful thinking rather than reality."

Davis's dogma just got run over by Wilson's karma.

"Red" Davis and Californians are learning that you can't overturn the First and Second Laws of Thermodynamics, and the Law of Supply and Demand, by governmental decree. Good luck to California's conservatives (all six of you) in getting this monster back under control. From here, PRK looks to be headed to quick bankruptcy and 3rd World status.

Thanks for the post. Can you explain more fully the ins and outs of RANs and RAWs? Are they secured by bonds? What is the interest rate on such?

It will be interesting to watch the bickering and back-stabbing that goes on as CA Legilators tackle the task of trimming billions off the state budget. It won't be pretty.

It will also be interesting to see if the GOP gubernatorial candidate, whoever it may be, can successfully damage Davis on this issue.

So much to watch--can Davis make lemonade out of these lemons? You can bet he won't do the right thing and get behind real belt-tightening--at least not in 2002. And if the belt-tightening is delayed beyond 2002, whoever is elected governor is going to need a corset to get the state's finances in order.

Thanks snoper, I have reposted this part of your great thread.

"But the bond sale is on indefinite hold because Public Utilities Commission President Loretta Lynch has refused to approve rates to pay for it, saying the pricey power supply contracts should be renegotiated."

"Even if the Legislature approves Davis' proposed spending reductions, the state is looking at a cash-flow deficit by June of as much as $2 billion -- unless the power bonds are floated, according to projections made by legislative number-crunchers. And if it becomes reality, it creates a dicey political scenario involving Davis and his archenemy, state Controller Kathleen Connell."

We conservatives all six of us who live in California love the irony of these two statements.

First of all Davis appointed Lynch, a life long demonicRat to chair the PUC. Now she is in his face!

Kathleen Connell, our controller is another life long demonicRat! She and Facist Davis are like watching a cat fight where both cats hate each other!