September 19, 2008
California's budget mess
Anytime the Democratic-controlled California legislature fails to pass legislation, I'm usually pleased, given the nanny-state laws, rampant tax increases and even more rampant growth in the cancer that is government spending -- which is, course, taxpayer-funded spending.
One would thing that Republican Governor Arnold Schwarzenegger would be an effective brake on the tax-and-spend Dems in the capitol, but you'd be wrong -- and der Governator is quite peeved with the GOP minority's refusal to go along with his free-wheeling plans.
The Wall Street Journal's Stephen Moore has the best take on the situation in Sacramento I've seen.
"Arnold has lost his mind." That's what one long-time GOP budget aide in California told me in response to news that Governor Arnold Schwarzenegger will veto the state budget.
Everyone is confused by this latest action, because just a few weeks ago the governor was running around the state insisting on a tax increase to balance the budget. Now that conservative Republicans have won a major victory in forcing the majority Democrats to pass a no-tax-increase version, Arnold seethes that he wants a budget that puts "our fiscal house in order, and I promise the people of California that I will not stop until the job is done."
The problem is that Arnold doesn't have any allies left in the legislature in either party. Conservatives are still fuming for good reason that Arnold tried to ram a tax increase through by going into Republican districts to attack lawmakers in his own party who wouldn't vote for his tax hike. When Republicans in the state assembly tried to insist on a hard spending cap, Arnold was cutting deals with Democrats. Meanwhile, Democrats are angry they didn't get a tax increase or the big spending increases they wanted.
But the budget that Arnold will veto is a victory of sorts for taxpayers and conservatives know it. That's because the budget, three months overdue, does not include a sales tax or income tax increase to close a $15 billion budget deficit. Heroically, Republicans neither bent nor broke and effectively vetoed the tax increase plan the Democrats and their left wing interest groups coveted.
One hero here was House Minority Leader Mike Villines, who convinced his GOP caucus to rally behind the "no new taxes" position despite a big lobbying campaign by the media and recipients of government spending and the governor. "We're all taxed out in California," Mr. Villines tells me. "We all agreed that taxes would be counterproductive, because we are losing so many businesses and families to low tax states in the West."
But now along comes Arnold trying to recreate himself as a fiscal conservative. Many in the state think he's a budgetary Dr. Jekyl and Mr. Hyde. Mr. Villines points out that state spending has risen more than 40% in four years on Arnold's watch. Where was the concern then about "putting the fiscal house in order?" Senate Republicans, including the minority leader Dave Cogdill, are vowing to override the governor's veto.
Arnold has betrayed Republicans too often on too many issues -- taxes, environmental regulation, health care, global warming -- to have any credibility left. His budget veto comes years too late and billions of dollars short.
I supported the recall of Democratic Gov. Gray Davis, but as it turns out, he was more conservative than his Republican successor when it came to the nuts and bolts of governing. Thank goodness the Republican minority has managed to hold firm against the Dems -- and their ally in the Governor's Mansion.
Posted by Mike Lief at September 19, 2008 12:11 AM
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Comments
Arnold Schwarzenegger has utter nerve. He worked to throw out Davis on the single issue of fiscal responsibility and lower taxes. He promised to 'blow things up' in Sacramento and then turned right around and spent more money than Davis would have ever dreamed of.
Posted by: Bart at September 19, 2008 06:51 PM
Forget California's budget, the entire economy is going into a meltdown.
Posted by: Bart at September 22, 2008 07:19 AM