Posted by Jon Fleischman at 12:00 am on Jul 17, 2009 Comments Off on The State Budget Kabuki Dance Continues…
Apparently we are getting closer on agreement of a fix for the
massive state budget shortfall. From what I hear, the deal
does not include tax or fee increases, which is great news.
That needs to be the first priority for budget negotiators as
California taxpayers already are carrying too much of a burden with
their current obligations to state government.
That said, I am wondering whether or not Sacramento politicians
are tightening the proverbial belt enough. I recognize that
trying to deal with a shortfall of over $26 billion is not an easy
task. Especially for Sacramento Democrats who are either
union-controlled and don’t have the latitude to make many needed
cuts, or are liberal ideologues who would rather push California to
the brink than see a decline in redistributive wealth policies.
The reason that I say this is that from talking to sources and
reading newspaper reports, it would appear that borrowing and
gimmicks will make up billions of dollars of “solutions” for this
crisis. Current negotiations call for borrowing billions of
dollars from local governments – which is a terrible idea (if
raising taxes is the worst alternative,… Read More