State to Borrow $697,000,000 From Highway Fund

Frank Geefay July 22, 2012 at 03:55 pm

Frankly I don't have any problems with borrowing money from the highway fund. We are over reliant upon single car commuting and under reliant upon public transportation.
Regarding the overall proposed budget, it appears that there is a certain degree of balance between budget cuts and taxing the rich. No one is going to be happy. That is good because if we were all happy taxes would be reduced and spending increased. That was the problem with the previous Schwarzenegger administration. The more everyone equally hurts the more effective the budget is being cut and revenues raised. That is the key to solving our budget crisis. You can’t just do one without the other. Radical surgery has got to hurt. The more radical it is the more it will hurt the entire body. But Brown is trying his best under almost impossible conditions to save our education systems. I don't like a lot of things in this bill. Some go against my preference to help those who are in greatest need and help me survive these hard economic times. But I understand the situation and am willing to give him plenty of wiggling room and myself weather the storm. Brown is making a lot of very difficult and unpopular decision, even against unions who supported him in the past. I’m glad we have someone at the helm who is trying to save the floundering ship rather than make the passengers comfortable.

Frank Geefay July 23, 2012 at 03:15 pm

I will concede your argument about public transportation but borrowing from one to pay another is not an uncommon practice by state and federal legislatures so is not unconstitutional or impeachable, otherwise it would have been taken to the courts long ago to decide.
These are desperate times requiring desperate measures. The governor and legislatures are trying to salvage California's endangered educational systems which were greatly compromised by Prop. 13 decades ago. They are scrounging anywhere for money to save education which is the key to the future. The real scoundrels are the former governor and legislature who spent recklessly and put off approving the budget endless times. That is what should have been impeachable and unconstitutional. As I said earlier everyone is going to hurt. To recover from such a horrendous deficit will mean sacrifices none of us want. But it has to hurt everyone, including the very rich, in order for a correction to occur. There are always unpleasant consequences for reckless spending.

Gary E. Jones July 23, 2012 at 08:41 pm

Here's the thing Frank; what if the economy does not improve and budget assumptions for the future are not realized? Does the state continue to borrow from the highway and disability funds? We need to get out of this debt mentality and find sound financial solutions. It is obvious that assumptions up to this point did not take into consideration "Black Swan" events like the collapse of our financial system. In the private sector when assumptions go bad and projections are not met the options are bankruptcy, claw-backs, layoffs, etc. The private sector cannot raise prices on their products and services to adjust for mistakes in their projections and are generally cutoff form the capital and finacial markets. The state through this Bill is asking the taxpayers to pony up for their mistakes. I will probably vote for it because there are no other options on the table; but, it is going to leave a sour taste in my mouth. The question is begged; why weren't there claw-back provisions in the employee union agreements as to wages, salaries and benefits in the event the assumptions were wrong? My guess is because the fox was watching the hen house.

Frank Geefay July 23, 2012 at 10:16 pm

I basically agree with much of what you say. All I can say is that we cannot afford to further trash our educational system. The State University and UC systems are crying for relief. Students are protesting to no avail because the regents have no money so must increase tuition by 30% a year. Many of our best Nobel laureate and professors are going elsewhere. Schools districts everywhere are closing schools and consolidating to larger classes and those least able to afford it are having to commute to more distant schools. Good teachers are being laid off through no fault of their own. The governor is suggesting that our schools, which are currently ranked in the lower half of the country which itself is ranked 23 among developed nations in math and science reduce classes by 18 more days. The future of California and America is in great peril.
What is more important, today's highways or tomorrow’s leaders, technologist, and future. That is the choice we are faced with. We allowed our previous governor and legislature to spend beyond our mean. The State was already clearly headed for trouble even before the crash of 2008. We can blame the former governor and legislators all we want but that won’t help. We are all to blame for allowing and often demanding that our government spend beyond its means. Now we must all pay the very painful price. We are all in the same boat regardless of what you or I or anyone says.