The California Plan

California was 88 days late releasing a budget which had a 3 billion dollar shortfall and borrowed against future revenues because State lawmakers, both Democratic and Republican are more stubborn than a 10 ton boulder. Until recently, Governor Schwarzenegger claimed that California didn't have a revenue problem, it had a spending problem (which it does).

He announced yesterday that he plans to propose a 1.5 cent sales tax increase, and new taxes on everything from private repair services to veterinary visits. I wouldn't be surprised if you had to pay a tax the next time you went to the bathroom. The economy is in the tank, California's budget shortfall is now projected at 11.7 billion dollars, and the Governor is proposing large tax increases... So I guess we have a revenue problem and a spending problem now.

The problem: The state's requirement for a 2/3 majority to pass a budget. House Democrats won't cut spending, House Republicans won't raise taxes... Ergo, Spending problem and revenue problem.

What is among the Governor's immediate plans for spending cuts? 2.5 Billion dollars from education is top of the list, among other things like State workers being laid off 1 day per month and being asked to forego 1 to 2 holidays per year.

California is what? The world's 6th largest economy? There should be no revenue problem. The problem HAS to be a spending problem. Did I mention we just passed a bond measure to build a high speed train from SF to LA at a cost of 643 million dollars annually for the next 30 years... About 19.2 Billion dollars. The cost of which is only estimated to be partly recouped by rider fares.

The revenue problem has arisen from growing unemployment and consequently decreased tax revenues. Therein lies the crux. How do you create jobs and increase revenues without spending on infrastructure or by giving subsidies or tax breaks? It's something California is going to have to figure out, because it is out of money.

Taxes will HAVE TO go up. Programs will HAVE TO be cut. The system of direct democracy needs to go in favor of a representative democracy.

My only question is why are schools always at the top of the list for cuts? Can't we stop looking for John Connor?