The deal is terrible. Pass it now.

Joe Mathews's picture
Journalist and Irvine senior fellow at the New America Foundation. He is co-author of California Crackup: How Reform Broke the Golden State and How We Can Fix It (UC Press, 2010).

The tax increases don’t make sense. (Sales tax hikes in a bad recession—not smart. And where’s that severance tax?). The spending cuts are huge. And another $11 billion in borrowing. Who’s going to loan us the money? And where’s the economic stimulus the governor talked about.

It’s a terrible deal, one that will hurt the state and its economy.

And the legislature needs to pass it immediately. (Don’t bother reading it, lawmakers. It’ll only upset you).

Why? Because the costs of a horrible deal are lesser than the costs of no deal. The state is simply out of time, short on the cash to pay its bills. Even with this deal, the state will still be short of cash for the foreseeable future. But a deal, any deal that has tax increases and spending cuts, allows California to step away from the abyss and begin to dig out of its hole and restore its credit rating.

The costs of waiting – millions were being lost simply because of delay, as the credit rating sunk and bills went unpaid – were unacceptable. The state was losing money simply because there was no deal. And a state that’s out of cash can’t afford to throw away money.

There should be a commitment from Democratic and Republican leadership that the deal will be revisited, changed, tweaked and improved. But for those on the left or the right who want to initiate recalls and mount heads on sticks, the only appropriate target would be any elected officials who engage in any more brinksmanship and attempt to hold this thing up.

The Governor, in particular, needs to show some political leadership and make clear that the penalty of blocking this thing will be eternal hellfire, rendition to Syria, certain death. There’s nothing good about this deal, except for the fact that there is a deal. And for now, that’s enough.

Your suggestion is absurd.

Your suggestion is absurd. This is the APATHY the politicians want from us. The solution to the budget problem is clear and obvious. STOP SPENDING MORE THAN YOU "HAVE." Not "hope to have".

The Governor and political

The Governor and political leadership? What?

Our state budget bail out proposals

In reading all the comments above, there are no favorable ones the commentators like, but they say go ahead with the plan. The bottom line is there are no simple answers to the state budget problem. My thoughts are we should have a reserver accout equal to 20% of the most recent annual expenses for the preseding year and use the funds during periods of low cash flow periods, like the current period we are in. Isn't this the approach we should all take with our personal finances. I don't tink the state is any different. If we have to borrow money to make ends meet. we should repay it ASAP.

This has got to be a joke!

Passing this bill just to get on with life is exactly how we got into this mess. There is no going back to fix it either once it's passed. They will just move on to the next problem.

The deal is terrible: Pass it now

I've been reading this column for some time now and I've finally found something I can agree with unequivocally. The time for demagoguery is well past. The deal stinks. Pass it, get it moving, fix it as we go along, but enough ideology. We can't eat or spend ideology.

The dumbest idea ever

This is the dumbest idea I have ever heard. A bad deal is better than no deal at all. Are you kidding. When you go to buy a car and you negotiate a deal that is bad for you, do you sign the sales order anyway? Simple solution to the budget problem. Prioritize the spending, police,fire,schools and so on. Fund them first when you get to the funding for the artichoke awareness project, or what ever garbage that is in the budget, cut it. Simple.

A deal for the sake of a deal is no deal

Honestly, there is nothing in this that is attractive. So why vote for it? Just because it is a "deal" is meaningless. There is *NO* addressing the underlying problems, there *ARE* more of the same old tricks, and they are just delaying the inevitable. I tend to agree with others that a) California is ungovernable, and b) what we need is a nasty bankruptcy to fix some of this. jc

Wrong Deal

Wrong Deal....Wrong Time!!If we need more damage to get the publics attention so they can make more informed choices....then so be it. In my area ....the cities, the county and school districts are giving out raises. What financial crisis? The public thinks this is something else...Can you blame them?

I agree- It's the Devil or the Deep Blue Sea!

You are right. Pass it and let's deal with it. I just think it gives all the wrong messages at the wrong time and don't be surprised if even more businesses and individuals either leave CA or start buying things outside of CA. And, who IS going to lend the $11 Billion to a state which is so upside down? And, on what terms? Maybe if each Californian agreed to put a few hundred on their credit cards . . . naaaah!



Please note, statements and opinions expressed on the Fox&Hounds Blog are solely those of their respective authors and may not represent the views of Fox&Hounds Daily or its employees thereof. Fox&Hounds Daily is not responsible for the accuracy of any of the information supplied by the site's bloggers.