$14 billion is a huge number

"unfortunately the state has run out of fat and places to cuts" how can you make such an absolute claim? I can think of multiple places:

We have $6.5 billion in taxes currently owed but not being paid. Let’s get serious about collecting that before forcing the honest taxpayer to pay more. Like Howard Jarvis Taxpayers Association or not, on this, they get it: http://www.californiarepublic.org/archives/Columns/Coupal/20051220Coupal...

Second, if we can’t measure it, we can’t manage it. Let’s start measuring the performance of what we are spending money on and have some accountability in spending. Iowa provides a great example http://www.resultsiowa.org. Audit for performance, not just finances

Third, our prisons are currently understaffed, which costs us a lot in overtime pay. Could it be because the prison guard union demands too much pay and benefits, which results in the inability to hire more guards? Bringing our prison staff up to capacity, which would involve hiring more guards and releasing nonviolent inmates, would save us $200 million in overtime pay. We don't do that though because the prison guards union would have to make concessions. Realize as well, we pay over twice per inmate of what Florida pays

As well, we need to get rid of the middlemen in our education system. We have county school boards on top of district school boards, which is totally unnecessary.

Also, we need to go back to contracting out services when the private sector can do it more efficiently. Think of it like a new fence for your yard. You have 3 options:

1. You could build it yourself. Unless if you’re a whiz in construction, you’ll likely waste a lot of time and energy

2. You could hire a contractor to do it. You’ll likely find someone who can do it quicker, cheaper, and better.

3. This is what Arnold proposes, and it’s totally wrong. Sell (or long-term lease) that portion of your yard to a private company. The private company builds the fence and operates it for what the market bears. Up front, instead of paying the contractor, you get a check for your land. Over the long haul, you pay through the roof to get to and from your house every day because the land is owned by the private company and they charge a toll. You don’t want to pay anymore? Too bad, the contract locks them in and you can’t tear it down and get a new one built.

We need to do option 2 more. Let contractors bid with government employees every year and see who can do it cheaply. And enact a living wage requirement for private contractors who do business with the state if underpaying of employees is your concern

Finally, go back to responsible borrowing. We used to map out the project first, commission the engineering, and obtain the bidding BEFORE we borrowed only what was necessary to finance the project. Now we approve the bond first, and then figure out the project. If you wonder why the government usually ends up underestimating the cost of a project, there’s your answer

Also, no more borrowing unless the benefits of the project will still be around after paying it off, no more borrowing for local purposes, and no using general obligation bonds when revenue bonds can work

We’ve approved over $16 billion in water bonds over the past 10 years, and our water supply has marginally increased at best. Why? They’ve stopped following the principles I just said

One other important note: Had we just increased spending 6.8% each year since Arnold took office, we'd have the deficit days behind us. We instead increased spending an average 8.6% each year. Can you seriously argue that it's a revenue problem?

The Silent Consensus