From reading newspaper accounts this morning, Governor Schwarzenegger is seriously looking at calling a special session of the state legislature to deal with the fact that the economic downturn that is taking place is created a much larger than expected negative impact on the current fiscal year state budget. It is not surprising that state government income would take a hit at the same time that the California economy does – the real question is how will Sacramento politicians deal with this issue.
If there is a special session to deal with what is essentially an out-of-balance state budget (remember, the one that was just passed?), we will be going right back into the polarized environment which delivered us such a late budget in the first place.
There will be two schools of thought – more cuts in government spending, or increasing “revenue” (i.e… taxes or borrowing). The former position is the correct prescription for California taxpayers, already suffering the effects of the economic downturn. The latter position will be that of the public employee unions and left-wing ideologues.
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October 7th, 2008 at 12:00 am
Does anyone here think having the legislature “solve” the problem that they created and allowed to fester is actually going to result in real reforms?
October 7th, 2008 at 12:00 am
Well Well Well….are we looking at Barney Frank lite or Bernanke Voodoo or Obama Acorn Delite….take your pick….
This ain’t over till your Prop. 13 is swept away …the moochers are in charge…is there any other alternative but rip producers….I cannot think of any!!!!
October 7th, 2008 at 12:00 am
I have a feeling very few in government have any idea what is going to take place with tax revenue.
Being a member of that top marginal bracket that pays most of CA’s income tax I can tell you my normal 6-figure tax bill will be zero this year. I am hard pressed to find anyone in my sector making any money that would necessitate paying taxes. And to add insult to injury in regard to the state’s tax revenue problem, most people are taking advantage of the situation by selling capital assets and offsetting the gain against the capital losses.
It will be fun watching CA politicians really be faced with having to find a solution… and when liberals have the knee-jerk reaction of raising taxes, who are they going to raise taxes on— who has made any money?? Not only will we have great entertainment from the nimrods in Washington screwing things up, but also we will have great entertainment in Sacramento!!
October 8th, 2008 at 12:00 am
A great source of revenue would be drilling off our coast. Especially since the ban has expired.