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Funny Business
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The rumbling in California this week didn't just come from the earth, but from voters. They sent Sacramento a strong message: fix this budget mess and don't send us the bill. The Governor was hoping to solve some of the state's short term cash needs by issuing $6 billion in warrants, which the street might buy if it was backed by the Federal government. Sounds like the Feds don't want to play.
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CNBC.com Arnold Schwarzenegger |
"Based upon information I gathered in meetings I held while in Washington D.C., discussions with the legislative leaders, and the will of the people who said loudly and clearly in Tuesday's election that they want Sacramento to live within its means," Governor Schwarzenegger said in a statement today, "yesterday I directed my Department of Finance to bring me additional options to cut state spending so that we can eliminate the need to seek borrowing in the form of a revenue anticipation warrant in the revised state budget I have proposed."
It looks like the days of California putting off today's problems until tomorrow are over, though, call me a cynic, I'll believe it when I see it. With no borrowing on the horizon, what about raising taxes? You might think so, except every county in the state — even San Francisco! —voted down a proposition which would extend new tax hikes. But do legislators really have the political will to make $21 billion in cuts, more than $5 billion of them coming from education? Can they stand up to state public employee unions which have so much power they make the UAW look like kindergarten?
However, this is my big question: Are there really $21 billion in cuts that need to be made? What is a cut? Too often in politics, a "cut" means a cut in the planned expansion of spending, not a cut in the current level of spending. Too often, a "cut" means cutting jobs which are already unfilled. Take away all of those "cuts", and what kind of deficit are we really left with?
Still several billion dollars, I'm sure. So the cuts will come.
And we may be about to witness the biggest money grab in California since the Gold Rush.
Everyone supports education, and teachers up and down the Golden State will now make it clear that deep cuts will be a disaster, even though California teachers make, on average, 25 percent more than teachers in other states. Some schools may have to close. And that's not all. As we head into fire season, we will hear from state firefighters threatening disaster if they're resources are slashed. There will be dire warnings from police and prison guards. There are already reports that the state may shut down its poison control hotline. The threat — children will die. How about we shut down the DMV four days a week or, better yet, contract out that work to the private sector?
Californians faced similar threats back in 1978 with the passage of Prop 13, but the state managed to survive, and even thrive. However, that was a long time ago, and a lot of those Californians are gone. Is the current populace truly willing to bring spending in line with income? Or will some of the same angry voters who said "no" on Tuesday become convinced that taxes should be raised to save schools, because, well, it's all about the children.
That is the showdown to watch. That is the message which could spread. Saying "no" to teachers, firefighters, Highway Patrol officers and prison guards will be a shot heard 'round the country much louder than the one fired Tuesday.
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