The Legislative Analyst, Elizabeth Hill, has once again issued a report where she is VERY concerned about the structural deficit of the State of California. Assembly Republican Leader Mike Villines (pictured) responded to her alarming report by saying:
“Assembly Republicans are encouraged by the nonpartisan legislative analyst’s projection of a larger than expected $3.1 billion budget reserve at the end of the current budget year. However, we take very seriously her forecast of a $5.5 billion shortfall next year and large projected future deficits as a warning sign of budget danger lurking ahead.Though California has made progress in reducing the size and severity of our state’s fiscal problems, today’s report shows that much work remains to be done if we are to truly eliminate the deficit once and for all. With a decline in the housing market, slowing state economy and public pension crisis on the horizon, we must take responsible action now if we are to meet our looming fiscal challenges.
One thing is clear – this is not the time to return our state to the days of the runaway overspending that got our state into this budget mess in the first place. Now more than ever, lawmakers and the governor must resist the temptation to create costly new government programs that California simply cannot afford.
In the months ahead, Assembly Republicans stand ready to work with our colleagues to better prioritize state spending and encourage economic growth in our state – while rejecting any call to raise taxes on California’s working families.”
"Team Arnold" likes to say that the Governor is, "fiscally conservative, socially moderate, and environmentally progressive…"
I’m not sure what that all means, but I know what I think of when I hear the words "fiscally conservative" — and it is my hope that the Governor, in his State of the State Address, will bring an era of austerity to state government. His Performance Review of California government identified potential savings for California taxpayers of over $30 billion over a five year period if fully implemented. Perhaps the Governor can pull some of the proposals from this plan to make sure that the 2006-2007 is balanced, and also continues to make the aggressive payments on the bonds taken out to ‘balance the books’ back in 2006.
I know from my conversations with Senate Republican Leader Dick Ackerman that he and his caucus stand ready to support a fiscally prudent plan for California that looks for places to reduce spending. Ackerman does not believe that this environment is right (if there ever is a right environment) for initiating new, large and expensive state-run programs.
Governor Schwarzenegger articulated his opposition to new taxes over and over again. The voters sent the Governor back to Sacramento with a mandate to put a check on the size of state government. Elizabeth Hill’s concerns about the structural deficit foreshadow the need for the Governor to propose belt-tightening, and a back-to-basics approach to state government. In this endeavor, he will receive 100% support from legislative Republicans. However, Senate and Assembly Democrats will try to lure the Governor into massive spending proposals by dangling the "bipartisan" prize before him. Governor, don’t fall for it. Challenge Democrats to join you in a "bi-partisan belt tightening" of California’s finances.
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