Here's your handy guide to the state budget mess

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The Legislature has now moved into record territory by going 63 days past the beginning of the fiscal year without passing a state budget. The question that Sacramento insiders are asking is a basic one: When this budget is finally resolved, what will the state really have gotten for the longest stalemate in California history?

The cynics out there, including me, think it ultimately will be politics as usual with no real reform to show for all the hand-wringing. I hope that's not the case, but our leaders haven't given any indication that this stalemate is about anything other than politicial ideology. Compromise is a dirty word among legislative leaders.

There's a lot of finger-pointing going on right now at the Capitol, so I'm going to sort out for you the positions of the players in an easy-to-understand format:

Governor Arnold Schwarzenegger's position: The governor will accept taxes demanded by the Democrats, but only if there is signficant reform of the budget process, including the establishment of a "rainy day" fund that would gather up money in good financial years to help with the budget in bad financial years. It would also have a spending cap that would help match income to expenditures.

Legislative Democrats' position: They want tax increases to solve most of the budget problem, and would accept some cuts in state programs. But they don't want budget reforms that would cap spending in future years.

Legislative Republicans' position: They say the problem is too much spending and all the state has to do is make cuts. They back the budget reforms sought by the governor, but oppose any tax increases. They would accept some borrowing, and would take money from cities and counties to help balance the budget this year.

So the governor is caught in the middle of these two extremes. He is pushing compromise and legislative Democrats and Republicans are pushing gridlock. It's time for legislative leaders to actually show they are leaders by getting an acceptable deal that has long-term fixes to the budget problem.

And this brings us back to the question posed at the beginning of this post: When this budget is finally resolved, what will the state really have gotten for the longest stalemate in California history?

2 Comments

I am not about to make noises like understanding what a state budget is all about.
But I do fully comprehend that when the Republicans want to take money from
cities and counties, that they are taking it from WE the PEOPLE.

Cities and counties are but abstracts. What they are proposing is to make a
people do without and/or suffer more than they do already, while they (legislators)
maintain a life style that millions of Californians can only dream about. And we
the politically lazy and indolent citizenry are footing the bill. If we can or not
can afford it is beyond those public servants'??? scope of concern.

The slippery slope, of let's George do it, is near the end. And the world-shaking
event of the American Revolution is showing the signs of having come fill circle.
A limited number of an elite, well to do, to stinking rich class, and the masses
that make it fiscally possible but without enjoying any blessings thereof.

Sacramento (the government) is not unique, but it is the closest to our vest,
and being the hand in our ever growing slimmer money pouch in our pockets.

It has been said, and has been said over and over again, that under a democratic
system of government, demos must do their part or the whole thing goes south;
like in banana republic????

There will be no long term fixes to the budget from either the Republicans or the Democrats because neither side has the guts to make the changes that have to be made. Our government and its programs need to be cut way back but doing so will impact a lot of people. People don’t mind cuts as long as it doesn’t involve them. If our legislature does the right thing, people will feel it, complain, and they won’t be re-elected. They are not trying to figure out a budget that will work. They are trying to figure out a budget that looks like it might work on the surface but will get them re-elected. The Democrats need to cut expenses period and quit being bleeding hearts; people need to stand on their own…everyone can’t have their own special interest program. The Republicans say no new taxes but borrowing money costs money and taking money from local governments generally results in a local tax to subsidize it so it’s still new taxes guys. Arnold, the man without a party, clings to an old idea that has been around for the last thirty years (at least!) but has never come to fruition because the two parties won’t play responsibly. Hope wanes when you get smacked in the face with reality. I’ve been smacked one too many times.

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