$11 billion spending cut claim calls $4.7 billion in borrowing a spending cut!
The governor’s staff has pushed back over the downbeat tone of my last post on his new budget proposal. Turns out I wasn’t remotely downbeat enough. I would never buy the staff’s preferred headline of “Schwarzenegger seeks $11 billion in spending cuts” because of my endlessly stated objection to calling a reduction in projected wish-list spending a spending cut.
But even the rest of the state’s media, which inexplicably go along with such a framing of the budget debate, won’t be able to swallow this whopper from Arnold. Here is the 84-page revised budget plan released this morning by Finance Director Mike Genest. Please open the file and go to page 14, which breaks down how the gov wants to reduce spending from $103.4 billion to $92.4 billion, the $11 billion cut his aides tout. Then look at the fine print, specifically footnote no. 1.
The footnote refers to a larger-type line above it citing $4.96 billion in unspecified reductions in statewide expenditures. Here’s what the footnote says:
Includes $4.7 billion of reimbursements from proceeds of revenue anticipation warrants.
You follow? $4.7 billion in planned borrowing IS LISTED AS A SPENDING CUT!
This is preposterous. Even by Sacramento standards. Even by Arnold’s standards.
I fear for California, I really do. We may not be spinning out of control. We may be going down the drain.
Posted by Chris Reed at December 31, 2008 03:33 PM
We’re used to seeing Democrats screaming “Budget Cut!” anytime you decrease the amount of their increase, but now it seems it’s coming from our own “Republican” Governor.
And he wants to run against Boxer? I don’t think so!
One glimmer of hope, if he changes his mind and wants to run for re-election, there is possibly another Republican, maybe this time a real one, possibly going to snag his seat. It won’t be sold on EBay, but we might actually get a better result than we’ve had with Arnold if it were.