Posted by Jon Fleischman at 12:00 am on Oct 07, 2008 Comments Off on Special Session on Current FY Budget Shortfall?
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… Read More