by Brian Leubitz [courtesy of Calitics - Front Page]

by Robert in Monterey [courtesy of Calitics - Front Page]

[courtesy of California Progress Report]

By Diane Trzcinski
Cab Drollery

California's Governor Schwarzenegger has just issued a revised budget plan for the state, one that isn't sitting well with anyone, even the Republicans. He's backed off his plans for early release of thousands of prisoners, closing state parks, and slashing education funding. What's his plan? He's going to ask the voters to privatize the state lottery and use the funds to cut the debt and build a rainy day fund. If they refuse, he'll raise the state sales tax. Oh, and he's going to increase the cuts to Medi-Cal and other programs that assist the poor.

Obviously the element that is drawing the most ink is the lottery plan. Originally establish by an initiative, the lottery can't be tampered with except by another vote by the people. Giving the people a choice between losing future profits (all of which are supposed to go to school funding) and facing a sales tax increase now must seem like a slam dunk to the Governator.

An article in the Sacramento Bee summarizes the new budget plan:

by Robert in Monterey [courtesy of Calitics - Front Page]

The AP has gotten a hold of the governor's May Revise speech and therefore the major budget proposals that are to be unveiled tomorrow. The key elements are described below and over the flip I provide my immediate analysis.

• Arnold will float bonds using the state lottery as security. $15 billion over 3 years will be raised but $10 billion goes into "rainy day fund"
• If that fails, 1% sales tax hike to last no more than 3 years
• Prop 98 suspension abandoned; instead COLA will not be paid
• State parks closures abandoned; instead fees to rise $1 to $2
• $6 billion still left to cut or balance out somehow."

Analysis below...

[courtesy of California Progress Report]

By Robert Cruickshank

In November 2002, after winning a close re-election battle against Republican Bill Simon, Gray Davis announced to Californians that the budget deficit had swelled to $35 billion. In response the state's media denounced Davis as having caused the crisis and hiding the real facts from voters. In this atmosphere the recall effort that began in early 2003 caught on like wildfire, as the deficit was blamed on Davis, instead of on Tom McClintock's tax cuts or the economic downturn.

Six years later we find ourselves in a similar place. The economy is in a downturn and state revenues are being hammered. Arnold Schwarzenegger is now warning that the deficit could be as large as $20 billion. So how does the media react?

Well, if you're the San Francisco Chronicle's Matthew Yi, you talk about how this might help the governor and his proposed budget reforms:

by Robert in Monterey [courtesy of Calitics - Front Page]

[courtesy of California Progress Report]

Democrats and Republicans Should Put Cards on the Table

Blaming the Legislature (Or the Governor) Helps No One

By Frank D. Russo

I am in a curmudgeonly mood this morning as I read charges and countercharges over the state budget. I fear we are going through the movie “Groundhog Day” again on the California state budget—what Governor Schwarzenegger likes to call a Kabuki dance.

There is a real disconnect here. And it’s not the kind that needs a constitutional amendment on spending or other distractions.

Here’s the problem. The Governor is jetting about to all sorts of staged events—he calls some of them townhall meetings—and appears before local Chambers of Commerce and the like. Throw in a few chats with the local newspaper editorial board. Avoid large crowds of ordinary Californians who you can’t control—and by all means don’t show up at community events where parents, teachers, school administrators, and ordinary citizens are talking about school budget cuts.