The February budget deal has fallen apart with a heavy dose of economic reality. The May vote of the people has rejected tax increases and borrowing. The state’s constitutional officers and the Legislative Analyst are reporting that borrowing is impossible without a balanced budget. And the Governor, to his credit, is proposing a budget package that is almost entirely cuts in spending. Now some of the cuts are one-time, which merely postpones the day of reckoning, and some of the ‘cuts’ are actually fee increases, which hit Californians in the pocketbook.
Nevertheless, his plan works, especially now without the riskiest borrowing. The Legislature would be wise to pass it this week. Let me advise legislators that the pain and pressures are not going to get any better. In fact, if the Legislature seriously considers rejecting any one of the cut items, then they have the burden to find another cut of equal value and then tell that interest group that their spending is less important.
Pass the Schwarzenegger budget. He has accepted the reality of our economic times clashing with our spending excesses. No amount of tinkering will change that reality and no number of changes will make this budget any better. Every Republican and every Democrat should vote to pass this budget quickly and then move on the bigger issue of what California state government might do to encourage economic growth. I would suggest they focus on transportation and water, but I know they cannot do so until the current budget is adopted.
This budget proposal has already had more scrutiny by the legislators, press and public than the February secret budget deal. The month of May should end with legislative action to respond to the crisis.