California shortfall $21.3 billion if measures fail

[Trumplestiltskin 5,791]

Yes, he did - but as I said, his main aim is to close the budget deficit gap. The reps in Sacramento will not allow any tax increases of any sort so what else can he do? Nothing is not really an option, is it?

Yeah not really. Certainly not a great position to be in - rock and a hard place.

At least LA doesn't have the rolling power blackouts that they used to get in the later years of Gray Davis' administration - all because of his dodgy backroom deals.

Edited May 12, 2009 by Private Pike

[Peikko 1,575]

I'll give the governator this, he's not a crook. I believe he is sincere in wanting to give something back to California and that's why he went into politics. I expect he is as disappointed with his lack of success in many areas as anyone. He's worked hard, even if ultimately he's been running up a down escalator.

[The_Dude 1,142]

I'll give the governator this, he's not a crook. I believe he is sincere in wanting to give something back to California and that's why he went into politics. I expect he is as disappointed with his lack of success in many areas as anyone. He's worked hard, even if ultimately he's been running up a down escalator.

His ultimate downfall was picking a fight with the two strongest unions in the state..... within 2 months of taking office

[Peikko 1,575]

I have nothing against the idea of unions, I think they were born of necessity but sometimes they cease to live up to their original function and the union itself becomes powerful and self serving and ceases to serve those they are meant to be representing, I have a big problem with that and people should 'pick fights' with unions that become overly top heavy.

[scandal 951]

At least LA doesn't have the rolling power blackouts that they used to get in the later years of Gray Davis' administration - all because of his dodgy backroom deals.

Nah, that's only because they shut down Enron's illegal trading operations in which they were shunting power off the grid out-of-state during peak hours, and then forcing the utilities to buy back their own power at inflated prices. Oh, and the deals signed with Enron were not by Davis, they were made by the utilities, particularly PG&E

I'll give the governator this, he's not a crook. I believe he is sincere in wanting to give something back to California and that's why he went into politics. I expect he is as disappointed with his lack of success in many areas as anyone. He's worked hard, even if ultimately he's been running up a down escalator.

I agree with MC on this. I voted No on the Davis recall in 2003 because he had been elected to a 4 year term in 2002. Unless he committed an impeachable offense (which he had not), I saw no reason for the extraordinary step of recalling him. Nonetheless, Davis was recalled and in came Ahhnold. I had nothing but foreboding at the time, but 6 years later I think he's done a fine job as Governor. He's worked very hard to resolve deep intractable problems in a bipartisan fashion. He's been a great advocate for the state and improved his working relationships with the Legislature. Long gone are the 'girly men' references.

Living now in Illinois I only wish we had gubernatorial material of this calibre. Anyone wanna trade Blagojevich and Quinn for a decent workhorse governor and a first round draft pick?

Anyway, I thought this piece was applicable on the "doom and gloom in California" thread:

http://www.cnbc.com/id/30704576

Is God Punishing California?

Posted By:Jane Wells

Ok, I realize that headline is a little over the top. But let me summarize recent developments in the Golden State, and you judge for yourself.

-A massive drought is now three years old.

-The state's destructive fire season, which usually starts in the fall, has started in May.

-A few small earthquakes have rattled Southern California this month.

-Salmon are disappearing off the coast for the second year in a row, with no known cause.

-Brand new homes are being destroyed because it's cheaper than finishing them.

-Some doctors believe the swine flu actually started here.

-Everything wrong in the nation is happening here to a worse degree: unemployment, home values, etc.

-Three months after "solving" a projected $42 billion budget deficit, the state is already $8 billion in the red, headed to $15 billion, and maybe even $21 billion. That's $600 for every man, woman, child here, legal or illegal.

The solution?

Next Tuesday, voters will decide on a slate of propositions meant to trim $6 billion from that deficit. So far, it looks like most of the initiatives will lose, despite the efforts of Governor Arnold Schwarzenegger and some unions to get them passed. The propositions would do the following:

-If the state ends up with excess revenues in any given year, those revenues would be put in a rainy day fund (after schools get their cut). However, voting for the "rainy day fund" also allows the state to extend new tax hikes for another three years.

-Issue bonds to borrow against future state lottery revenues.

-Transfer to the general fund nearly $1 billion in accounts sitting unused, funds currently designated for specific purposes based on previous voter-approved propositions.

-Deny pay raises to legislators in deficit years (this one may actually pass.)

The Howard Jarvis Taxpayers Association is leading the charge to defeat most of the propositions, claiming they are not real reform and only prolong the pain. But the Governor's not going down without a fight. "Miracles do happen," he says. This week he will detail two revised financial outlooks, one if the propositions pass, and one if they don't. If they don't, the Governor says he will cut state fire resources 10 percent, release 40,000 prisoners, cut $3.6 billion in education, and force local governments to give the state $2 billion, money the local governments don't have.

A scare tactic?

Gov. Schwarzenegger says it's a reality check, and he will respect whatever the voters decide. "People are angry at Sacramento, they're angry at the politicians," he says. "They should not let that anger out on killing those initiatives, because what they would do is hurt their local communities...Sacramento would not get hurt." He says legislators would still get paid, still get their "great, great golden healthcare plan," and they'd still have jobs.

But the odds are against him.

Voters ARE angry about recent tax hikes, and many are frustrated at a state which continues to base spending on faulty revenue estimates. In April alone, the State Controller says personal income tax revenues were more than $1 billion below budget estimates. That's a $1 billion miss for just one month. On top of that, the Obama administration is threatening to withhold $6.8 billion in stimulus funds to California if the state cuts the wages of one union to save money. All the more reason, the Governor argues, that the ballot initiatives must pass. "I will never give up."

Neither will the opposition.

[The_Dude 1,142]

I will give the governator credit where it is due. He has been very good at responding to natural disasters in the state. That's it. He hasn't accomplished anything else. As far as fostering a better working relationship with the state congress? That involves him bending over and taking it from them.