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Arnold Schwarzenegger and the Republicans Cost the State $7 Billion
The California State Senate adjourned at midnight unable to pass three stopgap bills that would have saved the state $7 billion. In an attempt to appease Governor Arnold Schwarzenegger the Democratic leaders of the state legislature hastily drew up the three complicated bills to try to stave off fiscal collapse and the necessity to begin issuing IOUs. All of them failed. The Republicans exploited the two-thirds rule once again and all three of the bills went down in 25 to 14 votes, with Senator Abel Maldonado (R-Santa Maria) abstaining. The two-thirds rule for passing budgets means that Schwarzenegger and the Republican minority chose to run the state off a cliff rather than strike a compromise with the majority Democrats. Senator Mark Leno (D-San Francisco) said on the Senate floor just minutes before the midnight deadline expired that it was "unbelievable" that the Senate would allow $7 billion to evaporate into thin air in a matter of minutes. It was a sad, pathetic display of gridlock brought to us by a Republican governor and fourteen Republican Senators. They once again put partisanship and the special interests to which they are beholden above the health of the state.
Now Schwarzenegger is threatening to push through yet another "furlough" day for all state workers he insists on holding hostage amounting to another 5 percent pay cut on top of the 10 percent they already absorbed. And he's holding out to dismantle parts of the CalPIRS state pension plan, which has nothing to do with the current budget crisis and will not provide any new money, hence it is not a "budget solution" at all but yet another power grab from an apparently power drunk governor. Who knows what Schwarzenegger and the Republican Senators are going to demand next? (They already got the "open primary" that if approved is certain to add to Republican power in the state.) The state is issuing IOUs for only the second time since the Great Depression and the state's bond rating is going to be toast. The whole confrontation is an example of Naomi Klein's "shock doctrine" where right-wing free-marketeers exploit a crisis to ram through regressive changes they've wanted for years.
For weeks Schwarzenegger said that only a bill that comprised a "full budget solution" of the $24 billion deficit would satisfy him or he would sign nothing at all. Then on Saturday, June 27, about 72 hours before the deadline, he added a host of demands that would hobble the public employee unions and raid the state pension plan. Schwarzenegger made a "leverage play" (as Senate President Pro Tem Darrell Steinberg called it). These "reforms" the governor threw into the mix late in the day had already been bundled together as a set of propositions in 2005 that the people of California handily rejected in a "special election" Schwarzenegger called (costing taxpayers at least $40 million).
The governor then handed Senator Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) an ultimatum: He would sign the stopgap measures and drop his insistence on a "full budget solution" (contradicting his stand he had held since May) only if Democrats capitulated to his demands to implement many of the measures that voters had already defeated at the ballot box. The sweeping changes in public policy Schwarzenegger's demands required, given their complexity and political volatility, had no chance of being rammed through the legislature without debate or hearings, and certainly not with the Republican minority and an unpopular governor holding a gun to the heads of legislators with the deadline to insolvency only hours away. Schwarzenegger's brinkmanship might satisfy his ego but it is a terrible blow to California's health and to the national economy.
Demonstrating his undying fealty to the prerogatives of corporate capital and wealthy elites, Schwarzenegger stood firm and allowed California to slide off into economic oblivion. California's demise is now dragging down the nation's economy and the whole charade was just to keep the state's richest special interests from paying their fair share of taxes. Schwarzenegger is again a political hero among the state's extreme Right and anti-tax crusaders despite his alleged soft spot for environmentalism and gay rights.
Now sit back and watch as the quality of life in California plummets: More crime and fewer law enforcement officers; more prisoners in already overflowing penitentiaries; more students crammed in dilapidated classrooms with fewer and lower-paid teachers; more kids thrown out of programs and into the streets; more layoffs and "furloughs"; more poverty without relief; more drug addicts and meth labs in "unincorporated" areas where sheriffs have been laid-off. And don't forget the crumbling infrastructure and the unkempt and unsafe state parks and young people denied the opportunity to go to college and a public health care system on the verge of collapse and a widening class divide between the richest and poorest Californians. Schwarzenegger's "legacy" will be that he tried his best to turn California into a post-apocalyptic Hellscape replicating the dystopian cinematography of one his Sci-Fi movies.
It's been a helluva ride since those heady days in 2003 when Californians were so childish and star-struck to entrust the governance of their state to a body builder/movie star who never served in elective office, (aside from winning pageants called "Mr. Olympia" and "Mr. Universe"). According to the website, "Bodybuilding Universe," Arnold's "Top Form Measurements" were: Arms: 22 inches; Chest: 57 inches; Waist: 34 inches; Thighs: 28.5 inches; Calves: 20 inches; Weight: 235 pounds. That's pretty impressive. But I don't know if it qualifies someone to be governor of California.
The California Democratic leaders, having been burned badly last February by agreeing to the stupid May 19th special election and caving in on the "open primary," finally stood their ground. They even tried to bypass the Republican minority with their own parliamentary maneuver to push through bills with a simple majority that would take effect in ninety days that do not translate into a net tax increase. Too little, too late.
It's time for Schwarzenegger to take the political heat for the budget crisis. He's acting like George W. Bush at the end of his second term: So unpopular that he figures he might as well try to push through his maximal demands. All cuts, no taxes.
Californians must pay attention to Schwarzenegger's reckless brinkmanship and turn the mirror back on him to make him accountable politically for his own actions.
Governor Schwarzenegger's wife, Maria Shriver, might pass on to her wayward husband these remarks from her uncle, Robert F. Kennedy, who had a very different view of relying on the so-called bottom line as the only measure of the quality of life:
Our Gross National Product now soars above $800 billion a year, but that counts air pollution and cigarette advertising, and ambulances to clear our streets of carnage. It counts the special locks for our doors and jails for the people who break them. It counts the destruction of our redwoods and the loss of natural wonder to chaotic sprawl. It counts napalm and nuclear warheads and armored cars for the police to fight riots in our cities. It counts Whitman's rifle and Speck's knife, and television programs, which glorify violence to sell toys to our children. The gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile.
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See Joseph A. Palermo's Profile
Thanks for the comments -- it will take a little time but you'll see Californians get very angry when the state government services are provided at Louisiana levels -- small businesses are going under because of the constriction of state government -- someone should tell the Chamber of Commerce types who gave us Arnold and the Tea Baggers -- people who work for the state of California buy stuff too, ya know?
Robert F. Kennedy's words hit home and go straight to the heart, a poignant reminder of how much we needed him and how much we still miss him.
Raise taxes on the Rich, instead of cutting pay of the working class and services to the poor. Repeal or revamp Prop 13; we cannot support it anymore. Stop the myirad tax breaks, loopholes and exemptions given to those who can and should pay more. Raise auto and sales taxes for starters. The 2/3 rule needs to go too.
Arnold said he wouldn't dare single out the Oil Companies but has singled out state employees without a problem. He practices the no empathy rule as touted by Rush and Newt.
And when the rich people and their companies leave the state, all you'll have left will be the unemployed liberals asking themselves, "Well, who do we tax now?"
hey Wake-up ..........you are so right the dems have so many projects of waste the have ruled the state gov's hand are tied
Hey betty...... you are so wrong, BOTH parties have caused those projects to be done, but only the Repubs have refused to pay for any of their pet projects.
Excuse me... This deal is about a Gov. that has grown so fat that it is imploding. It's only a Dem issue because they have been running the State since 1988...
The ideal "progressive' Liberal experiment goes down in flames!!
I'm hearing a lot of heated rhetoric about "destroying the public sector" but not a lot of substance.
If the Dems solution is to raise taxes (I'm a Dem btw), then I'm against it. My household makes what could be considered middle class, or maybe upper middle class (110K), and we're stretched to the breaking point. It would be a real blow to have to pay more taxes.
Also, you just don't raise taxes during a recession. That's crazy. Any economist would agree. Now is the time to borrow (like the President has done on the national level).
The thing is, California has been borrowing like crazy during the housing boom years and we can't borrow much more. So we're screwed. We can't borrow enough and we can't raise taxes. That means shrinking the size of government. It just does. Getting into a partisan lather over it doesn't change the reality of it. Now is the time for our pols (and pundits) to grow up and make some hard decisions.
You DO raise taxes in a recession, just not on those who can least afford it. You and I are in much the same boat (though I'm making around 5k less than you between my wife and I) and we are both struggling to pay for basic necessities. On the other hand, someone making more than one thousand times as much as us ($100,000,000 per year) is paying a smaller percentage of his income than we are. I'm sorry, but he's VERY able to pay more in taxes, and we need to repeal the raygun tax cuts!
Are there enough millionaires to close the budget shortfall? Maybe there are, I don't know, but I kinda doubt it.
See Joseph A. Palermo's Profile
Your civic spirit is truly awe inspiring vik
Your silly response pretty much sums you up doesn't it?
See Joseph A. Palermo's Profile
The Democrats now must keep the focus on Schwarzenegger just as the Republicans kept the focus on Gray Davis -- the current crisis now has a giant A. S. stamped on it -- Schwarzenegger owns this crisis and he deserves it! He ran a reckless game for short term advantage but he's going to find out that when the social costs become apparent and his role in destroying decades of public policy the people of this state, which outnumber registered Republicans by 1.3 million, are going to focus the blame on Schwarzenegger and the Republicans -- George W. Bush and the GOP destroyed the nation's economy and standing in the world -- Arnold Schwarzenegger and the GOP are destroying the most important state in the Union. When, O at long last, will we ever be rid of these sorry men?
This is funny...
Dems have controlled this state since 1988... The legislature makes the spending policy and A.S . is trying to balance the finances How is that a GOP issue?
This is a perfect example of why libs should not be in control...
"W" did not create this economy... the free market did and libs are making it worse...
1979's Proposition 13 has finally fully come in to roost and dropped its biggest load of $#&! yet. Responsible public servants tried their darndest and staved off full collapse by about 20 years, but they couldn't stave it off indefinitely.
California's problems have been building for a very long time, all the way back to when Ronald Reagan was governor. It started as a racist reaction to welfare, anti-discrimination laws, equal opportunity laws, etc. By emphasizing taxes, the racist right-wingnuts could get the votes of those who would be hurt by their other, less-obvious goals.
Don't think this mess results only from the past 8 years. California voters in 1978-79 were warned of the catastrophe the passage of Proposition 13, the property tax limitation measure, would cause. Because the sky did not fall in the 1980's, voters began to think the sky would never fall.
It is very important that readers younger than 30 remember that their parents and grandparents embraced tax 'relief' in the seventies and eighties. It was only a matter of time before the Big Chicken landed and dumped in toto. Now it has.
Given how many Californians embraced Reagan and Laffer economics, it is difficult to feel sorry for them now. They got what they voted for. If they don't like it, they should look in the mirror to see who to blame for this incredible mess. They voted like fools for economic folly. Catastrophe was inevitable.
It is always darkest before the dawn.
I hope those of you who voted for Arnold are happy now. Worst governor ever.
It's pretty bad that he's surpassed Blagojevich, but he has!!! (by about a millimeter, and it may go back the other way.....)
See Joseph A. Palermo's Profile
The Democrats had reasonable revenue enhancers ready to go that would not impact the Tea Baggers at all -- unless they smoke cigarettes. The pressure cooker is building and at some point the people in this state have got to understand the Schwarzenegger and his Republican ideologues are doing this!
http://www.youtube.com/watch?v=DRFF1Uo46VI&NR=1
Come-on Joe... The Dems have been virtually running this State since 1988 (owning the legislature) and have made Calif. the "Model Liberal State" and look what's happening:
1) State employees (who are ready to revolt) and entitlements - no real cuts
2) Schools and the teacher's union (more entitlements) have run the system into what it is now - in the ground
3) Business leave due to workman's comp and oppressive Gov.
4) Calif. has the highest taxes in the US
5) Free services for illegals...
The ideology here is from the left, i.e. no real cuts and real cuts as well as restructure is needed.
BTW, nice video - talk about ideology... Pitching the poor illegal alien??!!
Come on wake up, you've been wrong on everything that you've ever posted here, so it's pretty darn likely that you're wrong on this post too!!!
The fact of the matter is that Californians are paying less in taxes than they did from the time frame of the 70s, and the rich in California are paying far Far FAR less in taxes than they did then, and the state is suffering for it!
Watch the video to the very end It was produced by none other than that trustworthy news organization - ALJAZEERA!!!
Actually, Al Jazeera is a very reliable news organization. They don't have the reputation of the BBC, of course, but they DO have the same STANDARDS as the BBC....
This man's idealogy is not only in another country, it's in a another century.
What's the delay? Isn't it time to Recall this governor? Has the Ministry of Silly sent down orders to let this odd looking despot ride out his term just to see what he does? "Hi Ho myself! Hear Ye, my subjects, if I can make it, anyone can." Next is the "My Way or the Highway" threat. This time the Highway is the Economic Abyss. This crazy Feudal Lord gave a 7 billion dollar tax cut to corporations last July. Speaking of fools. I haven't seen this year's budget. But I bet we can find more cuts. How about a 1% gratitude tax on all corporations for being allowed to make a profit in California?
What about the previous governor? Recall was pretty easy--and for so much less. It barely took effort because, yes, Arnold, had action figure credentials! Now that we're over that fantasy--- now what? What are the steps for recall anyway?
How are we going to pay for the recall election. We can't even pay the folk who are already working for CA's government. While I agree that it would be very satisfying to recall Arnold and replace him with a Progressive, I think that it would be very irresponsible to spend the money to do so at this point in the game.
The California Republican dream is coming to fruition. Like you said, Mr. Palermo, this has been their agenda for a long, long time.
Excellent article Prof Palermo. It has only been a few days ago that the Gov was reminding everyone that the budget costs $40 million in extra costs for each day that it is late. Calculate 300 days minimum in late budgets over ten years and the total exceeds $12 billion in waste just because they're in gridlock. I am a columnist for the Examiner and some other internet magazines and just wanted to commend you for your article. I did a feature over the week end about a people's movement involving no special interest to call a Constitutional Convention. Two initiatives have already been filed which if passed would allow we, the people, to ELECT not APPOINT 400 delegates to re-write our 130 State Constitution that has been amended by special interests 512 times over the past 130 years. It's a multi partisan effort to get the right to call a convention on the ballot. I read several plans out there and the one by citizen Paul Currier is the best one. The one proposed but not actually filed by Repair California is backed by Chevron (Currier is a poor man with a great idea). The flaw with Repair California's is that it proposes to "appoint" not "elect" the delegates. On Facebook: California Constitutional Convention, it looks like the only solution to me.
See Joseph A. Palermo's Profile
http://www.huffingtonpost.com/joseph-a-palermo/california-needs-a-new-co_b_207535.html
Thank you B Cayenne, I'd be interested in any links about how we can counter this obscene power play by right-wing Republicans to destroy the state's public sector -- this is what happens when you let Tea Bagging right-wing AM talk radio jocks run a state of 38 million people. Hollingsworth et al. in the State Senate, and Arnold. There is a national edge here too because they're consciously trying to disrupt Obama's attempts at stimulating the economy so they can blame him in the 2010 midterms and in 2012.
I don't live in California, but if they are trying to throw future elections, then I have a big problem. Thank you for such thorough information about what is going on in California!
You have hit the nail on the tail. We all know the Republicans are systmatically trying to sabotage Obama's stimulus. Their trying to rewrite history.
I am just glad it's not Nebr. Here we are building again, property saleing an tourist flourishing.
This is a no win game, and it needs to stop. A lot of the state republican legislators are from rural districts. These same districts are going to be the ones hurt the most by the failure of the state. The population centers of San Francisco, Los Angeles, and San Diego will do just fine with large local populations supporting both city and county governments. But the rural areas with small populations that have fought any tax hike for years are looking at closing schools, closing libraries, going back to volunteer fire companies, firing sheriffs deputies and city police, losing community colleges, losing state parks, losing water and sanitation workers, etc. These counties are going to suffer for the rest of the state in ways we can only imagine. I expect to hear the great whining start any day. Maybe next time they won't be so quick to ask their legislators to blindly sign promises for no new taxes.
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