Ahhhhnuld's game of budget brinksmanship

[marmar]

from the LA Times:



Schwarzenegger takes step toward carrying out budget threat
The governor revokes the controller's authority to take out a high-interest emergency loan to keep the state running should talks fail. Democrats denounce his rhetoric.

By Shane Goldmacher
June 12, 2009


Reporting from Sacramento -- Gov. Arnold Schwarzenegger on Thursday followed up on his threat to block a high-interest loan that could be needed to keep California government running if he and state lawmakers fail to balance the budget soon.

The governor revoked the state controller's authority to take out such an emergency loan, a day after saying he was willing to bring state government to a "grinding halt" should budget talks stall. A loan would cost too much, he said, and give lawmakers an excuse to procrastinate.

"What we need to do is just to basically cut off all the funding and just let them have a taste of what it is like when the state comes to a shutdown -- grinding halt," Schwarzenegger told The Times' editorial board Wednesday.

Controller John Chiang said this week that California government faces a "meltdown," with the treasury set to empty by late July unless the projected $24-billion budget shortfall is resolved quickly. Lawmakers believe they must act by July 1 to keep funds flowing.

Legislative Democrats reacted angrily Thursday to Schwarzenegger's statements. .........(more)

The complete piece is at: http://www.latimes.com/news/local/la-me-arnold-budget12-2009jun12,0,5134908.story

[Cleita]

1. He should resign while he's ahead and let the Lt. Gov. finish his term. n/t

[musette_sf]

2. + 1

[anigbrowl]

3. Lest we forget, that's exactly what Clinton did when the GOP wouldn't give him a working budget

California is stuck with a unique set of rules, chief among being the extreme difficulty of raising taxes (which allows the GOP in the legislature to hold the state hostage). I actually think this may be a reasonable move to force the legislature to get its shit together, as opposed to short-term borrowing at high interest rates which is going to cost CA even more money to pay off (and thus require further cuts in services or jobs).

Schwarzenegger's already urged the state GOP to compromise on taxes, which is why he's now being labelled 'the taxinator'. As far as I can tell, his strategy here is to back the GOP into a corner and show them what happens when the taps are turned off as they keep demanding.



what's your alternative? a realistic one, taking into account California's actual laws.

[tularetom]

4. WTF right does he have to revoke the controller's authority to do anything?

The controller is an elected official just like the asswipe goobernator. He works for us not that flabby douchebag. Matter of fact the flabby douchebag works for us.

Let's recall his wrinkled ass just to humiliate him.

And lets pass one more constitutional amendment - to never elect a shitty actor to be governor. We've done it twice now and look at the results.