The Governor’s May Revise is out.
Senator McClintock has this initial response on his blog:
Going Forward (Backwards)
The Governor’s May budget revision has been released and from all appearances it moves in the wrong direction. The skepticism in my May 10th blog was borne out: the “significant spending cuts” hinted last week were flimflammery. The May Revision INCREASES the Governor’s January proposal from $103.1 billion to $103.8 billion. Some cuts. The projected deficit for next year widens from $1.9 billion to $2.5 billion. And that’s if everything in it works perfectly. Significant statutory changes will be required for roughly $5 billion of the plan.
If it were adopted intact and its projections are correct, state spending will have increased at an annual average of 8.1 percent (as compared with 7.1 percent under Gray Davis.) The four-year cumulative deficit would be $5.0 billion (as compared to $4.2 billion after five years of Gray Davis).
The good news is that the overall financial picture has improved since the Legislative Analyst’s February estimate by about $1.5 billion over the two years, and it will be interesting to see her critique.
In addition, Senate Leader Ackerman released the following statements from the rest of the Senate Republican Caucus Members.
Senate Republican Leader Dick Ackerman (R-Tustin) – “California has a spending problem. Auto-pilot budgeting continues to plague efforts to balance the books. The governor’s May revision does not raise taxes and reduces debt but does not go far enough. Senate Republicans will push hard for budget reforms to improve California’s fiscal outlook and eliminate our dependence on borrowed money. I look forward to working with my Democrat colleagues to persuade them to support a sensible spending policy.”
Senator Dennis Hollingsworth (R-Murrieta), Budget Vice-Chair – “The Governor’s proposal would exacerbate our ongoing budget deficit. While it does not raise taxes, it does increase spending too much, borrows too much and relies on too many shaky assumptions to be received favorably today. Hopefully, we will be able to resolve these issues in the coming weeks and have a truly fiscally responsible budget.”
Senator George Runner (R-Antelope Valley), Caucus Chair – “My biggest concern with this budget is that it has California spending more money than it will take in. If we are to truly rid this state of debt, our first objective should be to get spending under control. That’s why it is important for the Legislature and Governor to come together and steer the state on the road to fiscal recovery. The successes of future generations of families, business pioneers and community leaders depend on our actions today. I remain hopeful that in the coming weeks we will work diligently with Gov. Schwarzenegger to craft a responsible, balanced budget for the people of California.”
Senator Sam Aanestad (R-Grass Valley) – “I was expecting this Governor to make some hard spending decisions in terms of budget cuts, and I’m genuinely disappointed that it didn’t happen. This budget revision is nothing more than a repeat of the same song and dance routine we saw last year – more spending and more borrowing. Meanwhile, we continue to fall deeper into debt.”
Senator Roy Ashburn (R-Bakersfield) – “The numbers are better than we thought they were going to be. Revenues are a little stronger than we anticipated and there are no new taxes in this proposal, but we have a long ways to go The state budget is growing at too rapid a rate and we need to bring that spending down.”
Dave Cogdill (R-Modesto) – “The May Revision of the Governor’s budget, once again, sets the stage for protracted budget negotiations. While there are some extremely positive aspects of the May Revision, particularly payments toward our debt and the absence of any new taxes, there is still a great deal of work to be done. Spending is up, revenues are down, and our operating deficit lingers at over $2.5 billion. We need to do a better job of spending our money wisely – spend smarter, not spend more. We need to continue to focus on completely eliminating waste, fraud, and abuse in our system so we can put taxpayer dollars to better use. Only then can the state’s budget truly serve Californians now and in the future.”
Senator Jeff Denham (R-Merced) – “The Legislature in 2004 was told that the new administration tore up the credit card and that ‘never again will the state be allowed to spend money it doesn’t have.’ If that’s the case, then why now apply for more credit cards? The small family farms should not have to pay for the ‘hog wild’ spending of previous years.”
Senator Bob Dutton (R-Rancho Cucamonga) – “Governor Schwarzenegger’s revised budget proves once again, that California does not have a problem generating revenue. The state’s general fund will top $100 billion for 2007-08, an increase of more than $20 billion since 2003. Instead, California has a spending problem and now is the time for us to begin dealing with the deficit that has dogged this state for too many years. I’m glad to see the Governor continue his record of not raising taxes. In order to balance the budget we must control spending and there is no better time to do that than now!”
Senator Tom Harman (R-Huntington Beach) – “This budget continues to push California further and further off track, with more borrowing, more spending and more gimmicks. Unfortunately, this is exactly what Californians have come to expect from the Legislature and the Governor –more spending and irresponsible leadership. This business as usual approach needs to stop. We need to stop spending more than we take in as revenue.”
Senator Abel Maldonado (R-Santa Maria) – “The Governor’s May revise fully funds education and transportation and pays down some of our debt. However, it still spends too much and we need to tighten our belts or else we will have to make drastic cuts in the future.”
Senator Bob Margett (R-Arcadia) – “This year’s May Revise is more of the same. It is more spending, financed by more borrowing, with further reliance on one-time revenues. It fails to address the structural deficit that continues to plague California year after year, and ignores many budgetary pressures that could force additional debt on future generations.”