Declaring that California’s “wallet is empty, the bank is closed, and credit is dried up,” Governor Arnold Schwarzenegger today told a joint session of the legislature that it must produce a budget that spends no more than the revenue the state brings in. Pointing out that revenue is down 27% from the previous year this means the budget must be balanced with major cuts.
The governor’s message is not only appropriate, but also practical. Even if the majority believed there is an appetite for more revenue from the voters, there is no way that revenue could be approved and collected before the state runs out of funds in July. So the cuts have to be done and done quickly.
Acknowledging that cuts will bring fear and pain to some Californians, the governor said the legislature must heed the “powerful message” from the special election that the legislature must not come to the voters to solve its problems, but live within its means, create government efficiencies and don’t raise taxes.
The governor also urged the legislature to stand up to special interests and lobby for the people. This may be easier than usual, especially for Democrats, since many special interests went against the will of majority of legislators in the special election. Unions who opposed the budget proposals offered to the voters have a hard time now asking the legislators to support their vision of a balance budget constructed with all kinds of tax and fee increases.
The governor said all his recommendations can be accomplished without bothering the people or asking permission from the feds. If the California star is to shine again we have to make the fixes on our own. Outside help is not desirable or wise.
And, while the governor seemed to back away a little from his “blow up the boxes” rhetoric in urging the legislature to take the crisis as an opportunity to restructure government, the phrase still resonates. Learning from experience and using new technologies, blow up the boxes means creating a 21st century government. Blow up the boxes allows us to start anew without having to rely on a constitutional convention or other such radical procedures.