AP Photo/Rich Pedroncelli
Governor Schwarzenegger has finally realized what the state government must do to alleviate its financial troubles. Unfortunately, key California Democrats disagree and are opting to drain the state’s budget reserve in order to fund health, welfare and educational services currently provided by taxpayers.
If the Governor’s plans are realized, the safety net for low-income Californians will essentially disappear. Given that possibly, Senate Democrats see the budget reserve as a way to continue providing social services during these difficult economic conditions. Senate President Pro Tem Darrell Steinberg was reported as saying "[t]he purpose of a rainy-day fund is to provide funds for a rainy day. It's thunder and lightning in California right now."
Assembly Speaker Karen Bass also explained that “[t]he bottom line for Assembly Democrats is that we are committed to ensuring that the state's fiscal emergency isn't allowed to be misused to eliminate the safety net in California or to eviscerate our public education system."
It’s interesting that only after the state’s leaders have spent California into a massive $25 billion deficit are they suddenly protectors of the public concerned about the little guy. While cuts in social services will hurt poorer Californians, what benefit did those same people receive, for example, when Sacramento politicians endorsed inordinate environmental regulations, supported the highest tax increases in the state’s history and did nothing as the teacher’s union held school districts hostage for millions? Not only did all of these policies not benefit struggling citizens, they hurt them.
When regulations on industry are enacted to protect the environment and taxes raised to fill the state’s coffers, the inevitable consequence is economic loss. Businesses fire employees, produce less and even leave the state in some cases. Those hurt most by these results are the poorest individuals. Similarly, when school districts are forced by unions to pay unfit teachers $70,000 salaries plus benefits not to teach, less money is available for education—again, hurting the poorest the most.
The legislature did nothing to prevent such unwise policies, and even encouraged them in most cases. But unwise policies have their consequences and the benevolent public servants in Sacramento don’t want to deal with them. Since big spending cuts mean big cuts to the public services their supporters rely on, Democrats aren’t enthused. After all, upsetting your constituents really isn’t a good strategy to win re-election.
Nonetheless, spending cuts and less intervention in the marketplace are the only options the state government has left to straighten up its budget situation, and the ongoing recession is a part of that adjustment. As economist Jesus Huerta de Soto points out: "Under these circumstances, the most appropriate policy would be to liberalize the economy at all levels [...] Likewise, it is essential to reduce public spending and taxes, in order to increase the available income of heavily indebted economic agents.”
The Governor has finally realized the error of his ways and admitted that the state cannot dig into the budget reserves and keep spending as it has for so long. "California's day of reckoning is here," the Governor said.
Now it’s the legislature’s turn to have the same realization.
Comments
I think Schwarzenegger should uphold the rule of law and govern by the rules set forth by the United States Constitution as he swore he would with his oath of office.
Back in the sixties the government came into the schools and brainwashed us with the idea we needed to control the population because it was rising so fast. They said the roads would become crowded and we would run out of things like water.
They unleashed abortions, birth control pills, and other forms of Family Planning.
To allow the country to be over run with the criminals in businesses illegal labor while the criminals in the government aid and abet the invasion is a travesty against mankind.
They have seen to it our children were killed to control the population at the same time allowing the world to export their population problems here.
What about our sacrifices, many made against our will?????
P.S. We still haven't recovered from the last time the criminals in business were allowed to bring in t
for the most part you are wrong. not funding these programs will cause a collapse of the county governments which in turn just cause the problem to snowball. which i believe you already know. this is just more right propaganda.
Thank you for having the courage to write what most tax paying non-government employees are thinking.
There comes a time when we all have to stop spending. Borrowing from Peter to pay Paul has to stop. Unfortunately, it will hurt people and not just people in the lower income brackets. California is drowning. We can't keep making more deficients and trying to cover them with borrowed money. It will eventually work out but it will cost us something! The question is, Are we willing to pay the price for the mess that we've made? If the money isn't there, STOP SPENDING!!!
There is such a disconnect between our environmental regulations and the health of our communities. They are directly related. I can appreciate the philosophy of liberalizing the economy, but you can't do it at the expense of the people or the environment. That's just passing the buck to future generations. Oh wait, maybe that is a Republican philosophy? Until your kids get sick from breathing the air or consuming groundwater that's been tainted by toxic chemicals. Or dirty water pours out of your faucet -- or not at all.
I hope my local government collapses. The city council of Pomona can have my middle finger.
Despite the billions that is spent on environmental regulations and repairing our highways, I can't see any difference at all in our water quality, the air we breathe, or the pot holes in the streets. However, I do see that many of the illegals in my area now drive new flashy cars and have three bedroom homes and desk jobs with the city.
When it California ever going to focus on the people that pay to keep it afloat? Maybe when we pack our bags and move to a state like Washington, Oregon or Colorado. Good luck collecting income taxes when it's just the illegals and welfare recipients left behind.
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