Capitol and California - State Politics
Comments (0) | | Print

Dan Walters: California budget deal is a faint hope

Published: Sunday, Jun. 14, 2009 - 12:00 am | Page 3A

So what are the chances that the men and women we elected will close a huge – and ever- increasing – budget deficit in time to prevent a complete shutdown that would make the state an international laughingstock?

Somewhere between slim and none, if last week's contorted political machinations are any guide. Gov. Arnold Schwarzenegger and the Legislature's ideological, partisan and personal factions demonstrated that they are all over the map.

The February deal that supposedly closed a huge 2009-10 deficit with new taxes, some spending cuts, borrowing and some accounting gimmicks has collapsed. Voters rejected much of it last month and a continuing economic decline undercuts its revenue projections.

The current semi-official deficit estimate for the fiscal year that begins July 1 is $24 billion, although new and lower revenue figures have pushed it closer to $25 billion.

While Schwarzenegger has proposed a slash-and-burn approach to close roughly half of the projected shortfall (along with some more gimmicks), Democrats decry the spending cuts, which include eliminating all welfare grants, and float ever-changing notions for new taxes and borrowing that the Republican governor denounces as "hallucinatory."

Meanwhile, it's likely that the state will run completely out of cash, unable to pay all its bills, next month unless a new budget can be enacted that will satisfy bankers from whom the state will seek short-term loans.

While it would seem that the differences are clearly delineated – Schwarzenegger and GOP legislators pushing big cuts in education, health and social welfare spending and Democrats wanting to enact new taxes to soften the blow – the dynamics are actually more complicated.

Many Republican legislators, for instance, are opposing spending cuts that would affect law enforcement and prisons, including reducing the inmate population, while there are distinct differences – and a great deal of apparent confusion – among Democrats. And no one really knows whether Schwarzenegger is serious about dismantling the state's social service safety net, or is playing political chess.

The political pain among Democrats was on public display last week during meetings of a two-house conference committee that's supposedly writing a new budget. The budget committee sessions were called to counter complaints that the February budget deal rejected by voters was negotiated in secret by Schwarzenegger and a handful of lawmakers, without public input.

Hundreds, perhaps thousands, of witnesses lined up before the committee to denounce specific spending cuts. But at week's end, with a deadline for action just days away, there were no indications that the committee, by itself, could do the job.

If there is to be a deal in time to secure the loans and keep the state check-writing machines operating, it probably will have to be done behind closed doors. But that's a very big "if."


Call The Bee's Dan Walters, (916) 321-1195. Back columns, www.sacbee.com/walters.


hide comments

About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.


Sacramento Bee Job listing powered by Careerbuilder.com

Quick Job Search

View All Top Jobs
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older