Now it's your turn. California's fiscal melodrama is headed to voters in a special May election. Governor Schwarzenegger and legislators in both parties say the spending cap and four other ballot measures are necessary to solve the state's $42 billion budget crisis.
Critics on the Left and Right say pieces of the complex package are flawed, creating unusual alliances. After years of fiscal brinksmanship, nearly all agree structural reform is needed to make California governable again.
Gregory Dalton is chief operating officer at the Commonwealth Club of California and Director of The Club's Climate 1 Initiative. He previously was international editor at The Industry Standard magazine, an editor for the Associated Press in New York, and a correspondent in China and Canada for the South China Morning Post, a Hong Kong newspaper.
Proficient in both Mandarin and Cantonese, he is a former term member of the Council on Foreign Relations.
Arnold Schwarzenegger is an Austrian-American bodybuilder, actor, businessman, and politician, currently serving as the 38th Governor of the state of California. In May 2004 and 2007, he was named as one of the Time 100 people who help shape the world.
(born July 30, 1947, Graz, Austria) Austrian-born U.S. film actor and politician. A bodybuilder in Austria, he moved to the U.S. in 1968 and won the title of Mr. Universe five times and Mr. Olympia seven times before retiring undefeated in 1980. After appearing in the documentary Pumping Iron (1977), he starred in Conan the Barbarian (1982) and its sequel Conan the Destroyer (1984). Noted for his extraordinary physique and heavy accent, he became an international star with The Terminator (1984) and its sequels (1991, 2003). His other films include Kindergarten Cop (1990), Total Recall (1990), True Lies (1994), and The 6th Day (2000). In 2003 Schwarzenegger was elected governor of California in a recall election.
The single most powerful message a politician can deliver is, "You deserve something for nothing". As long as our political leaders care more about getting re-elected than they care about the country, they will continue to spend.
We might be skeptical on whether the rainy fund will work, but let's also give a credit to Gov. Schwarzenegger for trying to balance out both Republican and Democrat interests. He is right that in order to subsequently fix the budget legislator need to both cut spending and increase taxes. Federal government is already spending a lot and the rainy fund idea on the state level is not such a bad one.
What was up with those two people who crashed the conference, that was the most entertaining part I agree with @phiscal, you nailed it on the head, "it took the following administration just a few years to squander it all on tax cuts for the rich and other foolish endeavors." Exactly. The rainy day fund will not work because they don't know how to properly handle their finances.
I agree, I don't think the rainy day fund at the government level will work. Government will break through any barriers and loot any balance in the rainy day funds. Look at the Social Security and Medicare trust funds. There is no money in them.
Oh hey, just a reminder on the Clinton budget surpluses. He couldn't/wouldn't have done it without Newt. Personally I think both parties are poor financial managers.
I’m not sure this whole rainy day fund idea will work.
After all, the Democrats had accumulated a surplus for the entire nation a decade ago, and it took the following administration just a few years to squander it all on tax cuts for the rich and other foolish endeavors.
So introducing budged-balancing measures alone might sound good but be psychologically unfeasible in the long run…
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Watch Gov. Arnold Schwarzenegger on California's Budget Crisis