The Pencil Guy: Hourann's illogical blog

State got no money again?

Tuesday 30 June 2009 at 2:56 pm
  • Sometime tonight, the government of California will either reach a budget agreement, or (far more likely) continue in stalemate and stop paying creditors just like they did in February. The funny thing is that literally everyone who’s involved or watching agrees it’s a terrible train-wreck of a situation, and yet there are scant few people interested in addressing root causes like unsustainable spending growth ten years ago, or the state’s ridiculous limits on tax increases. (Oh, and this is a fun exercise …)
  • Meanwhile: late last week, slipping under the media radar courtesy of Michael Jackson (and Iran’s mild case of unrest before that), the US House passed a bill to establish cap-and-trade emissions controls not too far removed from Kevin Rudd’s plan for Australia. I’ve seen a few different places make this out as a big thing (heck, even the Fox News anchor last night was freaked by it). Yet this decision is nothing, because the law still needs to pass a hostile Senate — so, months at the very least. Given current conditions, I’ll be surprised if the US government actually implements any action on global warming before Obama’s term expires in 2012.
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I can has budget?

Friday 20 February 2009 at 1:45 am

Just under 24 hours ago, sense prevailed over enough of California’s governing body that they finally agreed to pass the state budget (eight months late!) … thus allowing staff to continue working, tax returns to be paid, roads to be maintained, colleges to stop turning away students, and other generally useful activities to happen.

Apparently the local Republicans are so insistent on not raising taxes that they refused to vote for an emergency bill, without which the state was literally days away from going broke. So strong are their convictions that the last member to change his vote fears a backlash, and the first was dumped as leader — yet for all the bickering, the Republicans failed to present a workable alternative. Months ago, they proposed $20-odd billion in spending cuts, but the state was hit so hard by the financial crisis that that’s now barely half the deficit. (Today’s compromise combined $15 bn of cuts with $24 bn in taxes and debt.)

Lest this make the Republicans sound like the villians, I should point out that California’s Democrats are far from blameless — they refused to cut back on spending for months at the beginning of the dispute, and were largely responsible for getting the state into this mess in the first place.

And this is all apart from the practically Byzantine rules of California’s political system — rules that require a supermajority to approve spending (the same two-thirds approval needed to change the constitution), or rules that require a full-blown referendum for pretty much any tax change (and thus any big new spending).

I seriously wonder how anything happens around here, what with the state’s leadership caring so little for its welfare …

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