Scissors I Don't Need No Stinking Scissors

Arnold circa 2003, cutting up the state's credit card.

Four years later, Arnold just pushed forward a new budget which puts even more money on our plastic. The only thing he is cutting is aid to the poor, elderly and disabled. The credit card lives on. Walters in the SacBee:

Schwarzenegger and his budget director, Mike Genest, acknowledged that the budget has a $1.5 billion operating deficit -- but that also assumed that the Legislature would go along with $5.4 billion in revenue and spending "solutions" that legislative leaders have denounced. Legislative Analyst Elizabeth Hill said even those numbers are too optimistic, that the shortfall is actually another $1.7 billion because of overly rosy revenue and spending estimates.

It is not just about the legislature going along with Arnold's sell off of the state's assets. There are real legal issues to be sorted out. The LAO indicates that some of what Arnold wants to do, particularly with transportation funds may be illegal. He is counting on that money to make his figures add up. That accounts for a portion of the difference between the Administration's figures and the LAO's.

Fundamentally, California's tortured finances are no different from those of a family living beyond its means and financing its lifestyle with credit cards and garage sales. Fundamentally, the state faces the same chronic deficit that has plagued its budget for most of this decade, ever since former Gov. Gray Davis and lawmakers irresponsibly wasted most of a one-time, $12 billion tax windfall on permanent new spending and tax cuts. And fundamentally, Schwarzenegger, while continuing to pay lip service to closing the gap, has concluded that he can't do it -- at least not without new taxes -- and wants to finagle his way through the remainder of his tenure, using Enron-like gimmicks.

It is not often when I find myself nodding in agreement with Walters, but like me, he cannot stand Arnold's hypocrisy. Schwarzenegger ran on the mantle of budgetary reform, but now is resorting to short-term gimmicks that will have long term consequences for the state's financing. Arnold has painted himself into a hole with his refusal to raise taxes. The solution this year is to sell off the state's assets and illegally reroute transportation funds. The structural budget deficit still persists.

Perata actually broached the subject of fundamental reforms during his remarks on the May Revise on Monday. It will take a bold and courageous move to actually start addressing the reasons why we pay out more than we take in. Our governor seems to be content to ignore the problem. It is up to the rest of the legislature to lead. Perhaps, maybe then Arnold can actually live up to his campaign promises. Maybe then he can cut up another credit card. I am sure somebody can find him a pair of scissors.