Save Our State  

Go Back   Save Our State > General Forum (non official Save Our State business) > State Government

State Government Issues of importance to SOS associates relating to their state government.

WELCOME BACK!.............NEW EFFORTS AHEAD..........CHECK BACK SOON.........UPDATE YOUR EMAIL FOR NEW NOTIFICATIONS.........
Reply
 
Thread Tools Display Modes
  #1  
Old 09-19-2010, 05:08 AM
ilbegone's Avatar
ilbegone ilbegone is offline
Senior Member
 
Join Date: Oct 2009
Posts: 2,068
Default Gimmickry worsens a reckoning

Gimmickry worsens a reckoning


Dan Walters
Sep. 19, 2010

The longer California's state budget stalemate continues – and it's now in record territory – the more likely it becomes that whenever it ends, it will be with another mélange of pie-in-the-sky assumptions, expedient spending deferrals and accounting gimmicks that crumbles in the cold light of reality.

Cynicism? No – realism based on long experience.

Writing a state budget began evolving from a relatively straightforward, albeit political, process into a hide-the-pea con game a couple of decades ago.

Initially, the rationalization for gimmickry was that economic conditions were temporary, so expedient solutions were justified to minimize service impacts.

Human nature being what it is, however, taking the politically easy way out became a habit, even when the economy was vigorous and revenues were gushing.

Permanent spending commitments were made on short-term bursts of revenues, making the inevitable crashes even worse. Capitol politicians of both parties devised increasingly outlandish gimmicks to avoid the tough choices of real spending cuts and/or real tax increases.

There are precious few term-limited legislators who can even remember the last time the state had an honestly balanced budget with a decent reserve.

Each year, no matter how long it takes, they kid themselves into believing that if they can just devise enough gimmicks and get through one more year, the economy will recover and resolve their dilemma.

As the current recession lingers without overt signs of recovery, however, that delusion becomes an ever-thinner excuse for not spending what they can afford, or paying for what they spend. From all accounts, California will be feeling economic pain for years to come, perhaps even semi-permanently.

Among economists who study California, UCLA's Anderson Forecast has been among the most optimistic about recovery prospects. But the quarterly report it issued last week had a decidedly melancholic air, seeing double-digit unemployment for at least two more years.

Recession has already expanded unemployment rolls by well over a million workers, not counting those downsized into lower-paying or part-time jobs or who have given up looking for work. While employment is growing slowly in the nation as a whole, it's still shrinking in California.

Our official jobless rate, 12-plus percent, is one of the nation's highest, but when those other recession-impacted workers are counted, it's 20-plus percent.

After three decades of a boom-and-bust economy, we're awaiting another boom, but it may never come. California competes in a global economy with some decided disadvantages. Structural economic shrinkage may be the inevitable outcome.

Another budget rooted in expedient gimmicks would merely postpone the day of reckoning, and make it worse when it comes.

http://www.fresnobee.com/2010/09/19/...y-worsens.html
__________________
Freibier gab's gestern

Hay burros en el maiz

RAP IS TO MUSIC WHAT ETCH-A-SKETCH IS TO ART

Don't drink and post.

"A nickel will get you on the subway, but garlic will get you a seat." - Old New York Yiddish Saying

"You can observe a lot just by watching." Yogi Berra

Old journeyman commenting on young apprentices - "Think about it, these are their old days"

SOMETIMES IT JUST DOESN'T MAKE SENSE.

Never, ever, wear a bright colored shirt to a stand up comedy show.

Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -8. The time now is 07:19 AM.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright SaveOurState ©2009 - 2016 All Rights Reserved