One significant benefit of economic crises is that they usually force bloated states to cut their budgets and subsequently become more efficient (well, efficient for monopolies, anyway).
In California, Guv-nuh Ah-nuld is faced with the prospect of cutting billions from proposed spending plans in order to balance the budget.
Slammed by an epic housing bust and massive job losses, California faces a $24 billion budget deficit and could run out of cash by late July if Gov. Arnold Schwarzenegger and the Legislature cannot reach a budget deal.
To balance the budget, the governor has proposed closing more than 200 state parks, releasing prisoners early, selling state property, laying off state workers and cutting health care.
Under the governor's plan, K-12 schools and community colleges would lose $5.3 billion over the coming year - on top of billions of dollars in recent reductions and payment delays.
The state would spend $7,806 per K-12 student in 2009-10, almost 10 percent less than two years ago, according to the Legislative Analyst's Office.
These cuts would only result in more economic and political freedom for California residents. Closing state parks and selling off property is a great way to repudiate debt immediately. Eliminating state programs has the dual benefit of saving taxpayers money in both the short- and long-term -- everyday maintenance costs disappear along with the state workers who would otherwise draw government-funded health and pension benefits. And many of the prisoners likely to qualify for early release would no doubt be those who have committed nonviolent "crimes" and who never should have been locked up in the first place.
Of course, you can never cut state spending without the teachers unions wailing the loudest and hardest. But despite complaints from school officials who argue that less funding will "shortchange" students and result in lower acedemic proficiency, laying off teachers, increasing class sizes, and cutting funding for educational fads will force the state to economize, which could allow it to become more productive if it took a few lessons from the private sector.
Generally, schools will weed out teachers beginning with those who don't have tenure, which is a formula for retaining many who are unmotivated and unproductive. However, if the governor instructed the districts to make these decisions based on merit (I know, fat chance), it would allow the state to weed out the worst teachers and keep only the best.
After all, this apparently is indicative of what California schools have been churning out so far:
"I think we won't be able to learn as much [if budgets are cut]," said freshman Andrew Taylor, 15. "They should put more money into schools. If you take money away from schools, you're going to end up with more people going to jail."
Seriously, folks, I'm pretty sure the only direction the state can go is up.