Joseph Palermo: The debt ceiling gambit that Republicans in the House of Representatives have used to tie the U.S. government in knots in recent months is simply the California GOP’s tactic writ large.
Adam Eran: So the origin of California’s tax reductions, and even its current budget deficit, is arguably oil price inflation. If we want a stable economy, and government without deficits, we need to stop kidding ourselves that spending is a the root our budget problems, and attend to our energy addiction.
The California State Senate adjourned at midnight, unable to pass three stopgap bills that would have saved the state $7 billion. To appease Governor Arnold Schwarzenegger, the Democratic leaders of the state legislature hastily drew up the three complicated bills to try to stave off fiscal collapse and the necessity to begin issuing IOUs. All [...]
Resolving our fiscal crisis will require many very difficult decisions, but our guiding principle must be constructing a budget that is least injurious to the most vulnerable. While we will have to take quick action to avoid the state sliding into insolvency, we must take that action in a thoughtful manner minimizing the potential permanent [...]
Immediately after the election, the Governor announced that the “voters had spoken” and that the defeat of Prop 1A “clearly” meant that Californians stood adamantly against any new taxes or fees. He must have been reading the leaves in the bottom of his tea cup in order to come to a favored conclusion, however, because [...]
Across the Border Humvees in Tijuana: The US and the Mexican Narco-Wars. We need to clean up our own act before intervening in Mexico. Even under Obama we look too quickly to the military “solution” — no solution at all. –Diane Lefer Unreliable Immigration Data Is Out of Date and Context. Mainstream media running a [...]
The 2008-09 budget which was passed in September of last year ( two and a half months late) contained several overly optimistic (I would say wildly unsustainable) assumptions concerning revenue: First, it assumed the sale of over $3 billion in revenue bonds, but no one wanted to buy California bonds. Second, it “borrowed” from over [...]
The California budget process is broken due to the requirement for a two-thirds vote to pass the budget. I would like to suggest a different procedure that preserves the minority protections of the two-thirds requirement while encouraging negotiation and ensuring that there definitely will be a budget passed. Proposal: If no budget passes by the [...]
Schwarzenegger Acting the Tough Guy to Cover for His Weakness? Both Houses of California Legislature Meeting This Morning—But Don’t Hold Your Breath
I was at the Governor’s press conference yesterday afternoon to see and hear directly his announcement that he would veto any bills sent to him before a state budget is passed. You can read his remarks in their entirety as dutifully transcribed by the Governor’s press office and published on these pages yesterday.