Republicans Holding State Budget Hostage
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We've been talking about California's recurring budget deficit for quite sometime now, and as fate shall have it, we begin another fiscal year without a new annual budget. I don't envy our government leaders at this time. They have some very difficult negotiations and decisions ahead of them. Even in my own simulated budget balancing, courtesy of Next 10, the best Governor Petty produced was a $9 billion budget deficit.

This exercise was solely based on the options given, in which I chose a mixture of modest tax increases on the wealthy, improved education spending to the national average and maintained the status quo on health and welfare services. And that was with no negotiation with legislators.

According, to Assembly Speaker Karen Bass and Governor Arnold Schwarzenegger, the top 5 legislative leaders are busy working it out as of late.

But how much work can get done when the Republican leadership refuses to face the facts that a tax increase must be in the works. Reality check, the state is projected to be as much as $16 billion in the hole. According to every reputable poll, voters don't want any drastic cuts in services, therefore you cannot cut your way out of this predicament.

Too many residents and voters will be in an uproar, since basic education, health and welfare services must be cut to reduce spending by $16 billion.

Still, they refuse to acknowledge that a tax increase must be a part of the solution. Give Schwarzenegger credit for being willing to put tax increases on the table. But since Arnie still identifies himself as a Republican, despite his unwillingness to lead the California Republican Party, he gives elephant legislators enough of the bully pulpit they need to hold the budget hostage.

Problem is, not even they have produced their own plan to close the gap and balance the budget. They are pure obstructionists right now.

In real terms, the "Yacht Party" knows that the wealthy will do fine in the current economic slowdown and budget crisis. Yacht club members can pay for their education, health and welfare on their own if the state cannot pass a budget that affords to pay for vital services needed by many California residents.

But the rest of us, who live one paycheck above homelessness, will be decimated without vital state sponsored services that protect our economy, personal safety and public health.

Take the 2008 California Budget Challenge at Next 10.

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