As the California budget crisis continues to be a showdown between a recalcitrant Executive and a weak-kneed Legislature, Governor Arnold Schwarzenegger, discussing the merciless state budget cuts he has proposed, insisted to Mark Leibovich of the New York Times Magazine (July 5, 2009): "I see the faces behind those dollars. I see the children whose teachers will be laid off. I see the Alzheimer's patients losing some of their in-home support services." But Schwarzenegger's attempt to exploit the worst economic catastrophe since the Great Depression to "eliminate" health and human services programs that have, in some cases, existed for decades, belies the notion that he has any sense of empathy for those who are unfortunate enough to find themselves on the receiving end of his budgetary axe. He's acting.
"Our wallet is empty," Schwarzenegger also said. That might be true. But why does he include himself? He who commutes to Sacramento in his private jet? "Our credit is dried up," he adds. Yeah, coming from the guy who plunged the state into fiscal chaos by squashing three bills that would have temporarily shored up California's finances. He added $7 billion to the deficit, tanked the state's bond rating, and forced California to pay its bills with IOUs for only the third time its history. And now Schwarzenegger whines about how California's credit has "dried up?"
The mass job lay-offs that have accelerated markedly since September have erased every single net job created in the nation's economy over the past nine years. That's a pretty damn serious economic downturn. Californians working in the private sector have seen their 401ks and pensions swallowed up or rendered valueless, their jobs eliminated, downsized, or outsourced, their homes foreclosed on, and their health care stripped away. Public sector workers have been "furloughed" and now Schwarzenegger and the Republicans want to swallow up the public pensions and bust the public employee unions.
During this budget impasse, Schwarzenegger is doing everything possible to bend public opinion against labor unions, especially public employee unions. He's vilifying people who work for state, county, or municipal governments (with a huge assist from the right-wing radio shock jocks representing the Tea Bagger set). And he's hoping to fuse this hatred with the deep-seated unpopularity of the legislature, a branch of government in which the Democrats hold the majority but in reality a Republican minority rules with a heavy hand. Just look at the fourteen GOP senators who snuffed out the stopgap measures Democrats worked hard to put together to buy time so budget negotiations could continue without making the fiscal crisis even worse. Schwarzenegger and his Republican colleagues chose to worsen the crisis in the name of crass political gamesmanship.
And who are the people the Tea Baggers, right-wing radio talkers, and the state's Republican representatives hate so much? It seems to run something like this:
They hate labor unions.
They really hate public sector labor unions.
They hate state, county, and municipal workers (because they're "lazy").
They really hate state, county, and municipal workers who belong to labor unions.
They really, really hate teachers (because they "don't teach" and they're "politically correct").
They really, really, really hate teachers who work in the public schools.
And they really, really, really, really hate teachers who work in public schools who belong to labor unions.
See how it works?
These are the "special interests" that Schwarzenegger prattles on about even while he pretends to "see the faces" of teachers and other public employees to whom he's giving the shaft.
The private sector economic crisis has produced a lot of misplaced anger out there among white working people and the Republicans are doing everything they can to direct that anger away from their own misrule and toward other working people who glean their livelihoods from the public sector.
But there's also a national component to Schwarzenegger's brinkmanship. California Republicans, including their "celebrated" governor, are heavily invested in President Barack Obama's political failure. They're using their power over the purse strings to punish public employees and dismantle as much of the public sector they can get away with knowing full well that it undermines Obama's stated goals for the economic stimulus package. The President wants to prop up and invest in public institutions and public infrastructure as a countercyclical, Keynesian spending effort to "prime the pump" (or at least try to offset the hemorrhaging of jobs from the private sector that has continued since December 2007).
They know that every public dollar slashed and every public employee laid-off or "furloughed" in the nation's most economically important state is another obstacle to Obama getting the economy moving again and thereby maintaining his popularity. In 2010 and in 2012, the Republicans are going to point to the economy and deem all of Obama's efforts a "failure." Just as many of the neo-cons seemingly cross their fingers hoping for a mass-casualty terrorist attack on U.S. soil because they see it as political gold for them, they're also cheerleading for the economy to remain stagnant because it will (or so they think) politically rejuvenate the Republican Party.
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Well, Dr. palermo was certainly correct about one thing. Governor Schwarzenegger does see the pain his policies are causing. the problem is that he intends to continue these policies and the public will be none the wiser for it. Californians elected this fool. Lesson: Be careful what you wish for, you might get it!
Arnold had said to the public how messed up Sacramento is as if he is not part of the problem. The fact is ever since he took over, he has been adding to the problem. Even though he delined to receive the salary of a Governor, it does not mean he's not part of the mess. His consolidation efforts claim to "save money" by eliminating duplicates. Fact is, he ends up spending much more. Projects has been approved to create new processes to replace the existing working processes. That's what the vendors desire. The State CIO was created; legislated into being by the support of vendors so that it would be easier for the vendors to sell their products to the State. The State CIO was appointed. Data centers were "consolidated". They were merged and now it is under one big organization called OCIO. They had a plan to build a huge facility in a central location. Now the old facility lease is terminated. The new building did not make it due to the surface of budget crisis. So, the workers had to move computers to a temporary location. Obviously, there will be another major move because the tempoary location is not big enough. He claimed that it will save big. They end up spending more. Who are the winners? Vendors. Who's loosing? State Workers. Do the state workers like it? No. Who's the cause of the problems?
Thank you for posting this.
As a professional employed by the State of California, I am paid 30% less than Federal employees with similar qualifications (and that was before the furloughs). The retirement benefits are supposed to compensate for the poor salary. I will NOT be getting anything like a 90% of salary pension. For most state workers, the formula is 2% for retiring at age 55, which goes up to a whopping 2.5% for retirement at age 63 or later. It's not 6 figures now, and it sure won't be then.
This great deal is thanks to my "powerful" public union. As far as I can see, the only useful thing my union does is file a lawsuit EVERY year when the legislature fails to bring in a budget on time and the governor threatens to force us to continue working for NO pay at all. So I guess they're worth the dues for that.
EVERYTHING needs to be on the table if this budget mess is to be solved, not just my livelihood and my children's education. Let's have the discussion, but based on actual facts, not the bizarre mythology that's being spread around about our extravagant pay and "ridiculous" benefits.
I don't know why everyone is a state worker hater. I can't speak for all state workers but I have a state job because I need to make a living, that's it. I get up every weekday and I go to work and do my job to the best of my ability. It's not great pay like I could get in a private sector job but yes I do have benefits and I do have a retirement plan. However it will be quite a while before I can retire and whether or not I have a pension when I get there is anyones guess. I am willing to do my share of give and take as should all Californians but why is the state worker being singled out as the pawn. Both my husband and I are state workers and if the Governator has his way with a fourth furlough day between us both our joint income will be decreased by 36.92% but hey I have benefits with a copay of $20.00 and maybe a pension 20 years from now. Why doesn't every Californian cut their pay by that and give it to the state and see how you can survive. Oh and by the way the unions aren't doing anything for any state worker right now even we dont really care about the unions. I am definately scrutinizing each political candidate that is running for office in future because I'm tired of them walking over their constituents.
See Joseph A. Palermo's Profile
For you people who are commenting on the side of the Republicans and Schwarzenegger's assault on the public employees and the public sector generally, here is an excerpt from an email I received recently:
"I am a disabled man who is confined to my home. I face the imminent cutoff of my In Home Supportive Services and much of my Medi-Cal coverage for different types of services. It hasn't all hit the fan completely as yet, but it will. I don't know what I will do when it does. Moving to a convalescent home is very frightening to me and I may have to if I am unable to care for my needs in the apartment where I am able to live independently at the moment due to the IHSS help I receive."
So how much have the unions volunteered to give up to help this poor man?
Joseph if this man is in Sac area I am qualified to help him and will do it for free. Just email me@ Michele.Turney@ yahoo.com. I will make sure he is taken care of :)
Their are countless stories like these. The money that we pay in taxes should go to help people in need. Their is no need for union bullies involved here. It hurts when tax payers money is used for union dues to pay union bosses and executives. Don't forget the sweet pension plans of state employees. I think people should go to union offices and protest and claim the money that was meant for them.
Keep in mind that IHSS has not been hit. I work for IHSS and I will be surprised if it folds. The biggest problem is the fraud that goes on as family members can provide IHSS services. This is the reform that is needed and the stogie smoking clown has made it clear he wants IHSS cleaned up. The only one he is "vilifying" are the state workers. Let make sure that we dont jump the gun
Keep up the good fight, Professor Joseph!
Karl Rove correctly pointed to the public sector as one of the last bastions of unionism. He wanted to eliminate this natural Democratic constituency. He made sure that the huge new Department of Homeland Security had no unions. Senator Max Cleland, a quadruple Vietnam amputee, voted against it for this reason and then was accused of "siding with terrorists" by the GOP in his next election. He lost!
Schwarzenegger, as so many on the right, has some atavistic dislike of unions. He should grow up and use his creativity to balance the budget. Demonizing unions when the real incomes of Americans are deteriorating is not helpful. With the decline of unions, workers no longer see the benefits from the increases in worker productivity as they used to. Now the vast majority of the gains in the form of increasing profits go to capitalists. Workers grow more insecure and the middle class becomes more fragile. Perhaps a college education grews out of sight for more and more young people.
By following such a path we surely will lose our leadership position in the world. We will become a low wage country with fewer educated and dependent on the sales of commodities like a developing country. The states in the deep South where the most free market ideas are applied are the poorest in the country and the lowest in socio-economic indicators. If we want a path to the bottom, conservative Republicans are taking us there.
We are #1 in the country in income tax and sales tax and #6 in overall taxes. This isn't a revenue problem it is a SPENDING problem. Cuts have to be made. We need to look at all pension plans. A government worker who gets 100% of their pay at 50 should STOP. All unions, mine included, need to stop thinking only of their "needs" (greed) and look at the whole picture. Programs and jobs HAVE to be cut. There is so much mismanagement and waste in EVERY state program and office. We
Joe, no offense, but lately you can't seem to write a paragraph without using the term "tea bagging". I think you should think about something else for a while.
They hate labor unions.
They really hate public sector labor unions.
They hate state, county, and municipal workers (because they're "lazy").
--You bet we do. Look at the pensions of the state employees. They can retire as early as 50 and public safety employees make 90% of their last years salary in retirement. Basically all the firefighters, chp, police etc are making over 100K in pensions. As a taxpayer I don't have that kind of pension. You bet we hate public sector unions.
They really hate state, county, and municipal workers who belong to labor unions.
--You bet we do. They have bloated health care benefits. We are paying $25 to $30 for copay and if these unions have to pay $10 they go on strike.
They really, really hate teachers (because they "don't teach" and they're "politically correct").
--You bet we do. California is ranked 47th in education and california teachers are one of the highest paid teachers. They don't want any change that requires fund diversion in any direction other than teachers. They cry about public school funding but all they want is to save their jobs.
They really, really, really hate teachers who work in the public schools.
--You bet we do. They killed the school voucher program.
And they really, really, really, really hate teachers who work in public schools who belong to labor unions.
-- They will spend millions in campaigning against any change. They hate tests because it shows how incompetent they are.
What people, like you, fail to understand is, that instead of questioning why these people should have such good benefits, and want to deny them.... you should be asking,"Why are all these fat cats making all this money in the markets, and yet I don't have the opportunity, or money, to protect and provide for my family. You are allowing yourself to be used as a tool of the corporatists. If you think that's socialism, you're right. And the sooner you get on board, the sooner you will be solidifying the future of your children and grandchildren.
Fascism is no good, unless you're at,or near, the top. We're experiencing that right now.
And people wonder why California can not balance their budget.
the closest thing we have here to an industry theat has benefits like the State of California is the Auto industry. They went bankrupt because of those expenses.
If companies had to give the benefits that state employees get the jobs would move overseas.
Wow...let me counter some of the remarks you have just made:
1) What job do you have sir? Who supports you for your retirement?
2) Bloated health care benefits? What do you mean? Taking care of oneself is bloated?
3) 47th in education? Where do you get your info jack? I as a recent graduate of UCSB (17th in our nation for public universities) and of the Chemistry department (ranked 9th overall in our nation) , I disagree with that statement. 47th in education would more than likely be rural Alabama or perhaps one of the other southern states. Highest paid? Perhaps in PRIVATE schools! Fund diversion in any other area? Crying about public school funding? Are you nuts? Of course they don't want educational funds diverted, since most of them help pay expenses that the teacher has to pay out of THEIR own pocket that most kids parents WON'T pay! Of course they want to save their jobs, since they are about EDUCATING the public with their particular subject mastery! Again, what is your job and educational background?
4) Oh. You mean the fact that we don't want kids who's parents are illegals to give their children a free education? YOU BETCHA!!! Send'em back to the country they come from and educate AMERICAN kids!
5) If the change impacts their economic stability, yes. Give them a test on subject matter they have mastered, not some contrivance you have created to fail them!
1) What job do you have sir? Who supports you for your retirement?
---Whatever job I had is not safe and it requires hard work. I don't have a union bully looking over my shoulder, instead what I see is my hard earned tax dollars funding ridiculous pension plan and benefits. A little left goes to the retirement and I don't have my hand in public money to fund my retirement.
2) Bloated health care benefits? What do you mean? Taking care of oneself is bloated?
---Bloated in a sense that unions hardly pay any copay, they retire at 50 with health insurance paid for life. I don't get this and I can't retire till I am 65.
3) 47th in education? Where do you get your info jack? I as a recent graduate of UCSB ......
---When you are talking about teachers union then you are discussing K-12 education, not the universities. Good point though it shows how good institutes are when they are union free.
4) Oh. You mean the fact that we don't want kids who's parents are illegals....
---I agree, as a californian I should know how much I am spending on illegals.
5) If the change impacts their economic stability, yes. Give them a test on subject matter they have mastered, not some contrivance you have created to fail them!
--- Are you trying to say that their are no fair tests? why would you want to fail them anyway?
Tim...Your anger is misdirected. There are very few state employees that retire with 90% of their salary. Yes maybe the firefighters, CHP do but most of the state employees do not have that type of pay scale.
You bet the state is 47th in the nation-its been on a downward spiral for at least 30 years. This did not happen overnight -my husband and I are California grown (born here raised here) and have watched this downward spiral going on for years. The administration in schools is top heavy, archaic to say the least...Who is to blame? EVERYONE!! The federal government, the state, the admins, then finally the teachers..Have we "dumbed down" Californians?? You betcha!! But keep in mind its not the teacher's fault most are doing the best they can with the tools they are given. Lets face it education is not a high priority in Cali. As for the teachers they say "shi* rolls down hill" try teaching in a class where 3/4 of the students dont speak English or make no attempt to, buying your own school supplies because there is no money for paper etc. The incompentency starts at the top. Just my two cents
Arnold needs to grow a pair,, see Alex Baldwin great smackdown column today.
Seriously, he wanted the job,, now fix it !!!
Am I correct that your premise is: Republicans are out to destroy the economy and encourage a terrorist attack in the hopes that it will bring them back to power.
Sounds delusional to me.
That's their M.O....
The shameful opposition.....and they call themsleves patriots and Christians.
Like most Californians the state of California depends on growth and high incomes to support the spending. The enemy may not be the Governor, the democrats or the republicans but the structure. The Budget requires a 2/3rd's vote that's ludicrous. How can you pass any real reform and how can the Governor be that big a player when the vote required is veto proof. What happened to majority rule.
Whatever happened to democracy???
See Joseph A. Palermo's Profile
Wow Boblablah -- have you been out of the country or something the last six months? Call some of your friends and ask how their 401ks have done lately.
Actually it's a great time to buy stocks for the long term. PE ratios are reasonable.
Do you want to solve the budget problem or keep providing Ponzi scheme retirement plans? You can't do both.
401k lost lot of values in past year or two. Guess what state employees pension plans are immune to it, any loss they suffered will be paid by tax payers.
Eliminate current pension plans for all state employees immediately. Replace them with 401k plans like private sector employees receive. Problem solved.
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