As many expected, California’s recent lightening of the budget problems were just an aberration and reality has once again kicked in.
Arnold is under attack from all sides, everyone thinks they have a better solution. As a term-limited governor, his best options are to take drastic measures and leave a legacy of strong footing. We’ll see.
There is so much waste, fraud, and abuse in our California government, one of the worst in pension benefits for state, county, and local employees. I wish everyone could have a pension, but the waste and abuse have made that not possible. Gaming the system within California has been raised to an art form.
The LA Times tells us that the reprieve California had believed it had won with an improving economy has been erased in April.
The April collections came almost entirely from personal income taxes. Most corporate and sales taxes have not yet been reported. If they, too, come in below projections, the state’s budget problem would grow worse.
The decline sets Sacramento back as next month’s deadline for passing a budget approaches. Lawmakers face a deficit of $18.6 billion — about 20% of general fund spending — with no easy options left for addressing it, as they have already cut state services severely and temporarily raised income, sales and vehicle taxes.
“One pillar of the budget solution just got destroyed, and there’s nothing that can happen between now and June that can get back the $3 billion,” said Stephen Levy, director of the Center for Continuing Study of the California Economy.
I suspect that the elections in California will prove to be polarizing this year. Even the Rasmussen polls show the state is deeply divided with plenty of room still to run, politics are shaped by economics this year more than in recent memory.
The more California raises taxes, the more productive companies and people flee the state. The more benefits it offers, the more that don’t have them will flock here. It’s a display of perverse incentives. Unless there is some outside force that generates significant growth and inflation, we have many more years to suffer economic unpleasantness.
Who do you support for Governor? It is hard to tell who the “fiscal conservative” is with so many accusations flying between Poizner and Whitman.
Unfortunately I have no one to endorse for this election. There is no good choice.
This state has problems which are bigger than a governor anyway. Not even the governor and the legislature can help us with our fiscal problems.
Unfortunately, the best option at the present time is to declare bankruptcy and rewrite all of the contracts. There is a certainty for unrest in California before this mess is all over.
chuck
You don’t think there’s a ‘Chris Christie’ out there that will force austerity on Californians? Or is our budget problem so much worse than New Jersey’s?
From the commercials i’ve heard (LOL!), Whitman seems to be attacking Poizner on his “pro-life” credentials, which tell me that’s all she’s got on him, while he’s attacking her “pro-bailout” position.
So i’m assuming Poizner is the more fiscal conservative.
Please disregard this comment, and refer to my comment #5.
I think Poizner is better,too. He seems to have run as a moderate in 2004, but has become more conservative since then. At least he ran as an R in 2004 while Whitman was endorsing Barbara Boxer.
California sounds like they are in a big mess. It sounds like Poizner would be a better fit for bringing change, but from what understand he has his work cut out for him. Hope someone can turn it around, I have plenty of friends who are counting on/ hoping for the turn.
I’m hoping that Arnold will take some drastic measures before he leaves the office. He really has nothing to lose, and any new Governor will have a lot to lose.
I suppose if it was my retirement fund I would be screaming to high heavens, but since it is not – PLEASE DO SOMETHING ABOUT THE WASTE AND ABUSE OF PENSION FUNDS!!!
I take back my original comment that Poizner is the more fiscal conservative. Just heard a new attack ad from Whitman about Poizner saying he lobbied to repeal Prop 13 to raise taxes.
Anyone who does that clearly has no idea what CA’s problem is. And clearly is no fiscal conservative.
And now i don’t know who to vote for…