The Governor Draws A Line
The economic Paul Romer said, "A crisis is a terrible thing to waste." And Gov. Schwarzenegger, after a bit of drift, has taken that wisdom to heart, focusing again on his budget reform proposal, which includes a revenue stabilization or rainy day fund.
He told the AP in an interview Tuesday: "I will not sign a budget that doesn't have budget reform in it, because otherwise I could not keep the promise to the people of California. I told them in 2003 that we are going to become more fiscally responsible and that we are going to go and to start living within our means."
He's right about what he promised, and about his need to keep his promise. And it's good that he's demanding budget reform in this process. Whether or not all elements of his plan make sense, he's the only one with a real plan. I, for one, wish he had dreamed bigger and looked at a total, top-to-bottom reform of the state's tax system, and then matched that to a rainy day fund. But it's good that he's pushing for some kind of reform at a time of crisis. This is his last, best chance to get anything done.
Voters need to pay close attention to news of the budget. If there is a reform that includes changes to the state constitution, they'll have to vote to ratify them in November.
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