By Douglas V. Gibbs
Zeroing in on having to issue IOUs, the California legislature pulled together an $87.5 billion budget on Friday. Part of the budget contains spending cuts. The rest is creative accounting that takes into account a number of revenue and funding dollars that is not guaranteed.
That's like basing your home budget on the assumption you will win the lottery.
The Governator put his Arnold Schwarzenegger on the bill before the end of the evening on Friday, well knowing that the creative accounting, should the hoped for funding not come in, could leave the new governor with a shortfall come next year.
With yet another year of plunging revenues, and the unwillingness to cut welfare programs, California will again dance on the brink of collapse.
Transparency, as with the federal government, was non-existent, as the California lawmakers negotiated the budget agreement behind closed doors.
Tax and Spend Democrat Jerry Brown, if elected, will definitely worsen California's economic position. The fiscal conservative, and not-so-conservative-on-many-other-issues Republican Meg Whitman will definitely shake up the financial system, and turn it around with welfare reform, but may increase spending in other areas like environmental conservation efforts.
Schwarzennegger is not running again because of term limits.
The budget came late, and was highly anticipated because the state has $8 billion in unpaid bills for a variety of programs and projects.
The $7.5 billion spending reduction, while good, is not nearly enough. Arnold asked for $12 billion in cuts, but the Democrat majority did not approve of the Governor's ideas, and instead delayed a tax break.
Included in the plan is also a provision that puts before voters a measure in 2012 to bolster a rainy-day fund and roll back public pension increases for new state employees approved in 1999.
-- Political Pistachio Conservative News and Commentary
California Budget Approved 100 Days Late - Reuters
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