Legislative leaders and the governor have reached a new budget deal and boy is it a stinker.
Lawmakers gave in to the governor’s demand that would make it harder to draw on money locked away in a rainy day fund. Effectively, it means it will be harder to pay for health, education, social services, transporation — all the things we pay the state to take care of.
Additional cuts will also be coming. If this budget passes (as it is expected to tomorrow) and is sent to the governor, Gov. Schwarzenegger still has the ability to use his line-item veto power to reduce spending even further. Watch out everyone (!) — especially in light of the fact that lawmakers caved to businesses and ix-nayed a tax amnesty program that would have forced thousands of businesses delinquent on their taxes to pay up.
Of course, we have no *additional* permanent sources of revenue, which means we’ll be fighting this same thing again in a few months.
I ran into a former Republican staffer today who opined that Republicans had “warned ” of this kind of death and destruction five years ago…. Would that have been the five years ago when a $6 billion hole was blown in the budget because the Vehicle License Fee was reversed?