
“Fees Are Fees and Taxes Are Taxes”
That was Arnold Schwarzenegger’s response on Friday when given his first opportunity to reassure voters that his infrastructure bond proposal was fiscally responsible. He’s going to need to do better.
This upcoming week’s budget announcement provides Schwarzenegger with an opportunity to explain in detail how a building campaign of this magnitude can be done without hemorraging red ink for the next several decades. While many leading conservatives have immediately denounced the bond package, it appears that the window may still be open for Schwarzenegger to explain how his proposal can be financed in a responsible way.
State Senator Tom McClintock, Jon Coupal of the Howard Jarvis Taxpayers Association, and Lew Uhler of the National Tax Limitation Committee, perhaps the three most respected voices of fiscal conservatism in the state, have all reacted cautiously to Schwarzenegger’s proposal. Each has acknowledged the need for California to address its transportation requirements, and each has offered guidelines under which a project like this would be acceptable. Wall Street has weighed in favorably, pointing to the… Read More