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.

Comments

[charitabledonation]

Oh please. I'm a democrat and even I can see that the democrats caused most of this trouble. This blame-game for the "tough love" governor is ridiculous. No recall. We need to spend what we have. Period.

[kjstjohn]

The Democrats did not hobble the state in its ability to raise revenue.

[Joseph A. Palermo - Huffpost Blogger]

Charitable, you obviously do not understand the two-thirds rule that the Republicans just exploited to run the state into bankruptcy -- it is 14 Republican Senators did this -- the Assembly even had passed the bills -- 14 -- count 'em -- 14 Republican Senators gave political cover to Arnold and blocked the 3 emergency bills -- this is what happens when Tea Baggers from AM talk radio actually govern -- it's Bush-style governance and to blame the Democrats is really a joke.

[Wake-up]

Talk about ideology..­. When the illegals and left revolt they're patriots and when the right does it, they're 'Tea Baggers'. You have zero credibility sir.

The Dems have been running this state since 1988...

[charitabledonation]

You obviously are forgetting to look at the cause of spending willy-nilly (D) with no regard for the inevitable decline of this fiscal bubble the state has been in since 2003. The dem solution was a band aid on a gaping wound gushing unstoppable blood, or in this case "dollars". The fact that our constitution ALLOWS for the two-thirds rule doesn't mean that they exploited it, they obviously feel as many people actually do, and what the voters voted on the belief of this past election, that spending our way out of this mess is not the answer.

We shouldn't be having "emergency bills" to begin with. And I don't know what AM talk radio has to do with anything, but to blame the Republicans is really a joke.

Please. All politics are irrational. What we can do is show some tough love and let things go back to a spend-what-we-have based economy. Lets give some thought to repealing prop-13, redesigning the constitution, and making marijuana legal. I think there are OBVIOUSLY more productive means of finding a solution than the blame game.

AND yes, Kjstjohn, the democrats DID hobble the state and its ability to raise revenue. All of the current politicians did. Arnold should be commended for doing THE RIGHT THING and showing the balls to get this state out of the NEEDLESS debt it is in.

[MAH999]

You aren't a democrat and you don't know what you're talkinb about.

[senorlou]

Arnold dropped the lawsuits against the energy companies who stole $45 billion according to this estimate:

http://www.zpenergy.com/modules.php?name=News&file=article&sid=270

He also dropped the car tax. That one tax would have generated $30 billion in revenue by now

45 + 30 = $75 billion because of one man. I'm guessing you voted for him, which is your reason for being defensive. If I'm wrong, let me know.

[RRG64]

Are Republicans economically destroying liberal states on purpose?

[charitabledonation]

No, I didn't vote for him. But remember, the republicans don't like him either. I am amazed that an opinion on such a "liberal" site (if It doesn't agree with the status quo) gets attacked the way it does. Must have something to do with this idealism everyone thinks they are in swing with. Now that they are finally paying attention after 8 years... good one.

[LeftRight]

So it was the DEMOCRATS who didn't have enough of a majority to pass new revenue sources that were stopped by the minority REPUBLICANS, and it's the DEMOCRATS' fault?????

[MintysMom]

Recall him. Now.

[kyle006]

I wish there was some way for the state to manage the money that they already have. There were talks of yet another cigarette tax (which just taxes the poor) and gas tax. Not to mention the illegal double taxation on cars. I'm not saying cut taxes, but please manage what you are given. Because if you can't manage the extreme amount of money that the state of California is currently getting, you will never be able to manage any amount of money. I don't know who messed it all up.... but it's messed up.

[jsgaetano]

Too much reality. Right wingers will never read it- their heads might assplode.

[RogerHWerner]

Grey Davis was a real live boogie man. Another example of the right exploiting a difficult situation for their own gain. This time Schwarzenegger is in an even worse position than Davis. I wish we had time to evict him the governor's mansion and elect anyone who promises to place the public before party and never behave ideologically.

[Joseph A. Palermo - Huffpost Blogger]

http://www.huffingtonpost.com/joseph-a-palermo/california-needs-a-new-co_b_207535.html

[Joseph A. Palermo - Huffpost Blogger]

If the Republicans' free-market prescriptions for creating a prosperous and efficient society work so perfectly -- then why, after three decades of setting the agenda for our nation's economic policies, do we find ourselves in this Great Depression-level predicament?

The State of California finds itself in the condition because of a small Republican minority imposing extremist agenda on the rest of us -- like signing a "pledge" like boy scouts or the Jonas Brothers NEVER to raise taxes no matter what the conditions -- When Schwarzenegger is through abusing this state it will look like Mississippi.

Maybe some of the people who comment here attacking labor unions and state workers should go track down and ask Alan Greenspan or Grover Norquist or Arthur Laffer or Stephen Moore or Larry Kudlow or John Taylor or any of the other free-market ideologues how this "perfect" system created the current crisis -- even Greenspan admitted his worldview was "flawed."

Or maybe we could summon the ghosts of Ayn Rand and Milton Friedman and ask: "Annie, Uncle Miltie, you both said that individual greed would translate into collective prosperity. We tried the greed part. What gives?"

[kappa08]

...well put.
look at the end of the day Humans are animals and will always fall into gluttony and greed if go unchecked. Those Capitalists or Ayn Rand egoists need to recognize that balance is the only path to quality of life. To ignore these realities and believe that people are basically good and will do what's right is immature.
Some would say that I am cynical. Maybe so. I would say a historian that recognizes other cultures and nations that have balance and understand value. Trust me you(ed.) won't get it at Wal Mart. But you will definitely if you go outside and listen to nature breathe...­...

[Joseph A. Palermo - Huffpost Blogger]

http://www.huffingtonpost.com/joseph-a-palermo/california-needs-a-new-co_b_207535.html

Thank you kappaO8 your comment is appreciated -- this crisis is serious but most commentary is not -- i.e. always splitting the difference and deflecting the real blame.

[LeftRight]

Boy I bet the Californians are glad now that they not only passed Prop 13, but that they ousted Gray Davis!!! Ahhhhhhhnold is doing such a FABULOUS job!!

[TashaG]

Well, I am 42 and Prop 13 was passed by my parents. It did help them out (and still does). Though I paid for it somewhat while in Jr High and High School, as the Republicans stole money from education to make up for the shortfall in Property taxes. Of course from what I understand, Big business were the real people to make out with Prop 13. It cut their property taxed down low and kept them low. Perhaps we need to cut Commercial property out of the Prop 13 tax cuts.

I didn't care for Gray Davis, but he was sure better than the crap Republicans that preceeded him and the one that followed him.

How about we make big corporations pay their fair share of taxes? That would be a change for CA. It would be a postive one that would help out regular working people better than cutting services.

[LeftRight]

Nah, we can't ask those poor companies to actually pay TAXES!!!!! They might have to go from a 50% profit margin down to a 49% profit margin!!!