fiscal crisis

Non-official Fiscal Crisis

by Julia Rosen [courtesy of Working Californians blogs]

Right now the revenue projections for the state are not very good. They are showing about a $10 billion deficit. That does not mean that it is time for the governor to declare a "fiscal crisis" under Prop. 58, as the Republicans are calling for. SacBee:

Top Republican lawmakers on Tuesday called on Gov. Arnold Schwarzenegger to declare a "fiscal crisis" to deal with California's looming budget problem, but administration officials said such a move would be premature.

Sen. Bob Dutton, a Republican from Rancho Cucamonga who refused to vote for the current budget because it spent too much, said the governor should use a special authority voters assigned him during the last budget crisis to tackle a budget deficit forecast to be nearly $10 billion.

Under Proposition 58 passed in 2004, the governor could declare a fiscal emergency if he determines revenue is "substantially below" what was anticipated in the budget and summon the Legislature into special session.

This smacks of the Republicans wanting to push through a bunch of cuts, rather than deal with the deficit in a strategic and long-term way. This is time for a thoughtful substantive discussion, not rash decisions. Arnold is right to resist this call. There is time and the state needs more data before it moves forward.

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Sen. Dutton wants to go back over the budget

by Brian Leubitz [courtesy of Calitics - Front Page]

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