California Insider

A Weblog by
Sacramento Bee Columnist Daniel Weintraub

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May 21, 2003

As the deficit turns

The gov was here last night for an editorial board meeting. Margaret Talev of the Bee’s capitol bureau did the news story. But her straight account can’t of course reflect the real spirit of the meeting, which I found depressing and frustrating. Davis began the meeting with a cheap shot at yours truly, pulling out a quote from a January column in which I said his revenue numbers might have been too pessimistic. As it turned out, his numbers were a tad high. But the real point of that column is as valid today as it was then, that Davis is overstating “projected spending” in order to take credit for budget cuts that don’t really exist. His feeble attempt to make me look bad in front of my colleagues left me wondering if that’s how he handles his negotiations with legislators. I know if he had asked for my vote after that petty display, I wouldn’t have given him the time of day.

Davis seems totally impotent at this point. He implored us to join him in beating up legislators of both parties to vote for his budget, which would borrow $17 billion and still not close the structural gap between revenues and spending. We asked him why he gave up on his January plan, which for all its faults at least was balanced. Because, he said, nobody liked it. But you never even fought for it, we said. Well, Davis replied, I was tied down at my desk for much of the spring working on the revised budget. We asked him what he would do to win passage of this version, and he said he was speaking to just about every interest group that would have him as they come through town. But beyond talking to editorial boards, he seemed to have no broader strategy for actually changing public opinion, explaining to people his view of the problem and his vision for getting us out of it. Which if I understand it is that the state has desires that go beyond its means, and we need to either raise taxes, cut spending or both to bring our books more in line with our wishes. Everything to him is an inside play. It’s all about lobbyists and interest groups and legislators. Even editorial boards, which he sees as a tool not to communicate with voters but with lawmakers, are part of the game. Very little connection to the bigger world out there.

Davis also assured us that once this budget-in-name-only was adopted, he and the Legislature would get right to work on closing that $8 billion gap that he’s already conceding would exist in the next budget. I find that very hard to believe. I’m beginning to think that as Republicans hold out against new taxes, and Democrats hold out against spending cuts, both sides will enable the other, and they will adopt a compromise budget that does neither. It would borrow to pay off the deficit and vow to “freeze” spending a year from now, which means nothing as a statement of intent. The governor would sign it, saying he has no other choice. Then they’ll all ignore the problem for another six months and see how big the next deficit grows, nudging the state just a bit closer to insolvency.