Today’s Commentary: 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