Voters in California say no to five propositions, massive deficit looms larger
The state of California is the middle of a $21.3 billion shortfall, which could reach a $42 billion deficit that’s projected midway through 2010. On Tuesday, the state put six propositions on the ballot that critics suggest, will only reduce the deficit to $15 billion; the burden of a budget that’s too inflated with services that, let’s speak frankly, aren’t required for the necessity of the state to prosper will be at issue for several years while states seek alternative dimensions with enough revenue to ease the strain on the state’s budgets.
Furthermore, the statist federal government made a heavy-centralized gift to "assist" in the states recovery from red-colored budgets which — like in Oklahoma — has ironically caused states to reassert their sovereignty. In other words, states need a lot of help. However, the way the federal money works, the states have little authority over how that money is distributed. How that money will magically appear two years from now, while states are still looking for revenue and have the additional burden of new, or sustained, jobs that state can’t afford on their own, isn’t known.
The six proposed changes in California:
Rainy Day Fund: "This measure would limit the growth of government spending."
Education Funding: "This measure would restore $9.3 billion to schools if Proposition 1A passes."
Modernize Lottery: "The proposition would authorize state officials to borrow $5 billion that would be repaid by profits from a revamped California State Lottery."
Child Services Funding: "This measure would shift about $1.7 billion away from early childhood development programs over the next five years and use it to help balance the state’s budget."
Mental Health Budget: "This measure would temporarily shift money away from a mental health program established by voters in 2004, paid for with a 1% tax on personal income above $1 million."
Elected Officials Salaries: "This measure would prevent pay raises for legislators and statewide officeholders in deficit years."
How did voters react? The top five propositions failed miserably, by at least 62.5%. The one measure that passed, did so with authority. Elected Officials won’t see an increase in their salaries during deficit years. That proposition won with 73.9% of the votes. I won’t get into the reasoning as to why voters didn’t pass any measures to help relieve, at least, some of the state’s deficits. However, unless you start axing these services to make the state more self-staining, then the cost will always be high and simply because you can’t afford to pay the people to support these services, they’ll be gone anyway.