Hold on to your wallet! (if you can)

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THURSDAY 2-21-08 So, our state legislature made the necessary budget cuts to prevent the state from running out of money before the fiscal year ends in June. Collectively, they say hard choices were made. Collectively, they say the next round of cuts will be even harder. That’s the round that’ll try to balance the budget for the 2008/09 fiscal year. That’s the 14.5 billion in red ink facing the state under current spending levels.

To give you a little “heads up” at what lies ahead, Senate President Pro Tem Don Perata says “we cannot cut our way out of this. We have to figure out how we get some balanced revenues in there.” Translated, that means we really don’t wanna’ cut spending, we wanna’ raise taxes.

And that’s going to be the major fight of the next round. It’ll boil down to what taxes and how much to raise ‘em. If all democrats vote to increase taxes, they still can’t get it to pass without Republican votes. Assembly Republican leader Mike Villines says GOP members remain opposed to taxes because they drive down overall state revenue. He says tax increases are economic disincentives.

In this current era of belt-tightening by consumers, and dreary economic predictions ahead, let’s hope Republicans stick to their philosophy. Taking even more money out of consumers pockets could be devastating to this state’s economy.

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2 Responses

  1. My prediction — The Governator will join Democrats and the back-stabbing will continue a-fresh. Since it is the citizens who will pay any blood letting in Sacramento will, of course, be wholly theatrical.

    Some of the fiscal conservatives left in the Republican party may earn a bit of political revenue by opposing the coming sell-out and even more from the economic suffering and ruin to follow.

    Heck, it could even lead to a purging of RINOs (or at least a change of heart) if the suffering is sufficiently sustained by the blood-sucking spendthrift socialists, lawyers, and opportunists who are working the system and call it “government”.

  2. According to a report by Arthur Laffer and Stephen Moore, “Rich States, Poor States” california ranks number 49.

    About half of our budget woes can be attributed to wealthy Californians packing up and leaving. They are taking money and jobs to one of those other , now golden, states ranked nearer to #1.

    Democrats should be in big trouble by now…funny, they aren’t. Forrest was right, “stupid is as stupid does,” and in California nobody does it better than liberal, oh pardon, “progressive” democrats.

    I may yet end up shipping my wallet off to Wyoming or Nevada.

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