Free Republic

<p>Propositions 57 and 58 are a package. Either both pass, or both fail. If only one wins with voters, both still fail.</p> <p>The package is advertised as a way to deal with the immense general-fund debt in the California state budget that was run up under the administration of recalled Gov. Gray Davis (Prop. 57) while making sure that overspending and going into debt will be prevented in the future (Prop. 58).</p>

<p>Should the state go $15 billion in debt to cover the mistakes of former Gov. Davis? That's the most important discussion in the Legislature this week as Gov. Arnold Schwarzenegger advances his agenda.</p> <p>The money would cover the $12.7 billion in bonds that Gov. Davis pushed through the Legislature, which apparently are running afoul of the state Constitution. Already, $2 billion in borrowing from the state pension fund has been ruled illegal in state court; and $10.7 billion in "deficit bonds" not yet issued is being challenged in court. The $15 billion would replace those bonds and bring them in line with constitutional requirements, as well as cover $2.3 billion of the $4 billion car tax cut Gov. Schwarzenegger just enacted.</p>