Another “borrow” budget
Heavy borrowing, no new taxes, and no budget reform. See you next year — same time, same place.
California lawmakers are set to approve a new budget for the largest state in the US Monday night, allowing Governor Arnold Schwarzenegger to end the longest budget impasse in California history.
The 77-day impasse was prompted by a record 15 billion dollar shortfall in state finances. The Democratic majority in the legislature wanted to raise taxes and avoid drastic cuts but were stymied by the Republicans. The budget needs a two-thirds vote to pass.
The compromise proposal increases spending for education and healthcare, while borrowing huge sums against the state lottery. It d relies heavily on manoeuvres that would push the state’s financial problems into the future at a time when economists have little hope that revenue is on the rebound.
* Measure R proponents breathe a sigh of relief.
** Assemblyman Chuck DeVore says the compromise budget does include budget reform provisions, but nothing the Democrat-controlled Legislature can’t throw out down the road.
