Governor, lawmakers reach deal on budget --- California

[JackSwift]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/12/12/CALBUDGET.TMP




Christian Berthelsen and Lynda Gledhill, Chronicle Sacramento Bureau Friday, December 12, 2003


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Sacramento -- Gov. Arnold Schwarzenegger persuaded reluctant Republican lawmakers Thursday to approve a budget deal he brokered with Democrats, giving a huge victory to the governor who promised during the recall campaign to find bipartisan solutions to California's problems.

The deal passed overwhelmingly by the state Assembly would ask voters in March to approve a plan to reel in spending by gradually building up a mandatory reserve account and give the governor expanded powers to make mid-year budget fixes. The Assembly also approved a bond to finance $15 billion in state debt, and the Senate is expected to approve both measures today.



snip





Comment. Other than the spending cap that threatens to destroy any long term recovery for long term education and any health care improvements, this looks like the basis to get through the immediate crisis. But that was in the Dem proposal to begin with. They way I'm looking at it, the Republicans completely caved and will still be taking their major issues to the ballots in the indefinite future. The article, from the centrist SF Chron, even manages to state that Schwarzenegger had to extract agreement from his own party, not the Dems. Browbeat is more like it. And Canciamilla is a really good moderate Dem, I'm proud to say I know him.

[dfong63]

1. imho it is not good

other than the spending cap? that is a huge problem. and the bond idea is still wrong, just like it was when Schwarzenegger proposed it. all in all, this strikes me as one more step down the slope of republicans' plan to starve the govt into bankruptcy. meanwhile, cities and counties are in even worse shape because of the loss of DMV fee money. i don't care whether this is a dem plan or a repub plan - i don't like it.

[JackSwift]

2. I agree with every point you raised except that

it is better than what immediately preceeded it and much better than what it appeared we were headed for: complete anarchy.

California had the worst of all 50 state's bond ratings at the beginning of this week, before it was downgraded late in the week.

While I truly believe that Republicans are intent on starving the California government into submission because they believe that government cannot work and "steals" their money in the form of taxes, and while I truly believe that Californians don't care what happens as long as they don't have to personally pay for anything like a tax, we still have to face the unpleasant fact that responsible policy requires choosing the least evil. This plan was very close to our original counterproposal to the the 15 billion 30 year bond with a rigid spending cap, which was 15 billion 7 year bond with no spending cap for education or health services.

[nothingshocksmeanymore]

10. It's still worse than how Davis was already dealing with it and communties

like mine are hit hardest. Arnold cut the car license fee which was a FIXED cost for an amount that still results in an uncertain amount of CUTS and higher fees.

If people paid a FIXED cost once a year, they could budget for it. This fix is largely dependent on inflation and interest rates. We would be borrowing far less if we hadn't given back 4 billion of revenues that fund the very emergency services necessary when an SUV rolls or devours a volkswagon.

[JackSwift]

3. Kick

this is important news.

[dusty64]

4. Hmmmm.

I'm not sure what to say about this.

[David__77]

5. This is a very, very good thing.

I know it sounds bad, but this is the DEMOCRATIC plan, not the GOP one. It avoids the ludicrous cap that would have meant severe cuts to education and social services in years to come.

[pinto]

6. kick...tough choices, but I agree with you JackSwift.

Good to see a Dem brokered compromise avaoiding the usual anarchy that's become our budget process. Overall, this is a good fiscal move for us at this time, imho.


And, as expected, Repugs will use ballot intiatives more and more for their "hot button" issues.

[joefree1]

7. So no one won?

I'm glad that Democrats were able to wring some sort of victory out of this, at least for the short term. However as long as we are only fighting a defensive battle it will be a slow death for our Democratic agenda in the long run.

The recall is on.

"It's not over 'till Arnold gropes the fat lady" —Bill Press, on MSNBC

http://www.recallarnoldwatch.org

[truthisfreedom]

9. it's about who lost. ahh-nold had to work with the Dems, and convince

the 'thugs. he wasn't able to flex his "popularity with the people" using referendum, so that's still an unknown... and i think he's a little fearful of the press he might get if he goes to the people anyway, considering that there's already one lawsuit filed over his groping and character assassination and there could well be more.

[bemildred]

8. Appears to me that Ahnold caved, for a punt to the voters

on his "ideas" next year.