Today’s Commentary: Budgets will be bad as long as GOP will vote for borrowing…
I’m still reflecting back on last week’s Prison "Deal" and the fact that it included over six BILLION dollars in additional indebtedness for California taxpayers. Especially heinous about this mega-debt is that it has been completely authorized by Sacramento politicians and apparently requires no vote of the people. Why wouldn’t they bring this amount of prolific spending to the voters? After all, lately, the electorate has been pretty accepting of big borrowing — having approved all of the Governor’s "big bang bonds" package last year. I am not an expert on intricate and arcane state laws when it comes to borrowing, but I can tell you that using "lease revenue bonds" just smells awful. The name implies that the bonds are issued against specific revenue returns from leasing the property that is built. But who leases state prisons? It’s the state, right? So if the state is responsible for paying itself for these bonds, I don’t see how that is any different from general obligation bonds. Clearly politicians will come up with any way to increase government spending,… Read More