The California Budget Package

"Here's the budget package, governor"

Cross-posted by Gary Fouse
fousesquawk



Things continue to spiral out of control here in California under the leadership of the Democrats, who control Sacramento and a governor who has no idea whether he is on foot or horseback. Facing a $40 billion deficit, Governor Arnold Schwarzenegger is now fighting the spending Democrats on his left and the no-tax Republicans on his right. As of today, he is stating that since the Republicans won't come to the table, he will sit down and negotiate alone with the Democrats, who cannot rein in their spending.

Here is the official statement on the Governor's web site:

“Kaleefornia’s unemployment rate reinforces da need for da schtate legislature to pass a real budget solootion dat includes aggressive ekonomic schtimulus - because ve must do everything in our power to hehlp Kaleefornians affected by da economic downturn get back to vehrk,” said Governor Schwarzenegger. “I’f sett countless times dat any budget plahn sent to my deschk muss include real schtimulus dat creates jobs, keeps Kaleefornians in der homes und provides schtrong, long-term recovery solootions for our schtate’s diverse ekonomy.”

Last week, Schwarzenegger received an $18 billion package from the Democrats that was centered around "new revenue" (taxes). Arnie declared that he would "terminate it" (veto) in the absence of more spending cuts and economic stimulus provisions.

Schwarzenegger declared, "Dis package dat dey are sending down does really only one ting, and dis is punish da people of Kaleefornia,". Yet, he then added, "Absolutely I vood have signed it if ve vood have gotten da cuts and da ekonomic schtimulus package."

On Friday, while in Fresno, Schwarzenegger stated that the Democratic package included "illegal taxes." Interestingly (or maybe not surprisingly), only the local Fresno media picked up on the fact that the Governor was accusing the Democrats of trying to pass illegal taxes. New taxes in California require a 2/3rds majority vote, not likely without some Republicans crossing over. However, with LA-based talk show jocks, John and Ken hammering the statement repeatedly, it began to spread.

By Monday, a kinder and gentler Terminator was ducking that issue. When asked yesterday in LA about the legality of the Democrats package, we got this; "Der is a legal debate about dat, der's no two vays about dat, as der is with many legislation dat is being passed in Zacramento. I myself zay alvays one ding, and dat is, I'm interested in a revenue increase."

So now, Schwarzenegger is trying to deal alone with the Democrats to find a revenue increase? Without a 2/3rds vote to raise taxes? Maybe if someone is interested in saving 40 billion dollars, they might cut out the billions that go in programs for illegal aliens every year. Or perhaps, they could cut the goodies that the State employees unions suck up at the trough called Sacramento. Unfortunately, that won't happen. The Dems in Sacramento are beholden-at least to the state employees unions.

Meanwhile, the Howard Jarvis Taxpayers Association stands ready to file an immediate lawsuit against any effort to raise taxes without the 2/3rds vote.

Reader poll: Should I wait to make my next report when the budget deficit is 50 billion or 75 billion?

PS: To my dear co-respondant Ingrid in Germany,

Please don't take offense. After all, it's that darned Austrian accent.