Wednesday, May 20, 2009

There will be blood.

The party of NO won the election.

The budget reform proposals on the California ballot May 19,2009 failed and the legislature has the lowest approval ratings in modern history.
No more taxes.
No more cuts to my programs and benefits.
Now the budget crisis is bigger - $21.3 billion dollars.
California has long labored with the notorious 2/3 rule for passing budgets and raising taxes. The Republicans have used their 1/3 stranglehold – and the veto of the Governor- to stop resolving the budget crisis.
In this election several additional groups, notably SEIU, CFT, CFA, have demonstrated that they too can produce a stalemate, but , like the Republicans, they can not write a budget that will pass. Unless labor all pulls together- the Party of NO wins.
In 2003 the Party of No recalled Governor Gray Davis. There is no need for recall now. The state is $21.3 billion short for the next year. And, the minimum guarantee for schools has just been reduced. (see below)
According to Paul Krugman, the best case scenario is that the U.S. economy will emerge slowly from recession and continue in stagnation for several years. Under these conditions, state budgets will not recover. We will continue to have a fiscal crisis of the states.
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