It would probably be a bit impish of Senate Republicans to do an "I told you so" dance around the Capitol — but they really do deserve to do one… Except for the fact that because they were so right-on about the fiscal woes facing California, that there is no time, and no reason to celebrate. Actually, I am sure, to a Senator, they wish they had been very, very wrong.
The Legislative Analyst just released her report on the state’s finances, and she is predicting a $2 billion shortfall in this year’s budget, and that we will start the talk about next year’s budget facing an $8 billion shortfall between anticipated revenues and expenses.
Senator Bob Dutton has already called for the Governor to declare a State of Fiscal Emergency*, and call the legislators back to Sacramento to deal with this problem NOW — and so far, the Governor has not, that I have seen, made any noises about doing so. As Hill’s report makes it clear, this is not a tomorrow problem, it is a today problem. Not only do we immediately need to cut billions in spending to keep our books balanced through June 30, we need to look at even more cuts now to spread out the impact of magnitude of cuts necessary to balance the FY 07-08 budget.
As Assembly Republican Leader Mike Villines has pointed out, the Health Care "Plan" being bantered around by legislative Democrats and the Governor is filled with tax increases and should be rejected. It doesn’t take a rocket scientist to figure out that tax hikes have a negative effect on the economy. The wrong medicine at any time, but especially poisonous in this fiscally challening environment.
The State of California has a spending problem. That is ultimately what caused Gray Davis to lose his job, and what put Arnold in the corner office. But instead of going down, state spending continues to balloon.
No one can say their eyes weren’t wide open.
* – The Governor championed and passed Proposition 58, included in which is the mechanism for the Governor to declare a State of Fiscal Emergency.
November 14th, 2007 at 12:00 am
Why on earth are the legislators debating Health Care?
Doesn’t anyone understand the $10 Billion Deficit Problem?
Yes, the Senate Republicans deserve bragging rights and tell Speaker Nunez and President Perata and say “We told you so”.