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Arnold seems to have gotten much of his way in the California budget battle:
Floating the 9 year bond to pay the current deficit is probably the least painful way to handle it.
The Republican opposition in the Senate was in favor of even stronger spending limits.
1. Ahhh...just what was needed from day one: SPENDING LIMITS!! Spending now cannot exceed revenues in a given year.
2. Just what's needed: lock 'em in the House/Senate chambers until they accomplish something other than throwing BS in all directions
We have both here in Michigan
A "rainy day" fund like this is also used here in Michigan and has bailed our state budget out many a time during economic downturns and when emergency funding is required.
Other states that use rainy day funds are Arizona, Florida, Idaho, Indiana, Kentucky, Nebraska, New Jersey, Tennessee, Virginia, and Wisconsin.
Rainy day funds are a terriffic idea....so much so that Michigan is considering creating a second rainy day fund just for education.
Dr. Mordrid
Senators voted 35-5 for the spending restrictions and 27-12 -- the minimum needed to get the bill on the March ballot -- for the bonds. All the Senate opposition came from Republicans. On Thursday, the Assembly voted 80-0 for the spending limit and 65-13 for the bonds.
The Republican opposition in the Senate was in favor of even stronger spending limits.
The multifaceted package includes a mandate that spending cannot exceed revenues in any year. It prohibits long-term borrowing to pay operating expenses, except for the $15 billion bond.
The governor will have the authority to force lawmakers to deal with a fiscal emergency, by calling a special session and stopping all other business until solutions are adopted.
The governor will have the authority to force lawmakers to deal with a fiscal emergency, by calling a special session and stopping all other business until solutions are adopted.
2. Just what's needed: lock 'em in the House/Senate chambers until they accomplish something other than throwing BS in all directions
We have both here in Michigan
Perhaps most important, however, is a requirement the Legislature begin building a reserve fund. Starting in 2006-07, lawmakers will be required to set aside 1 percent of general fund revenues into a "rainy day" fund and increase the set aside each year until the reserve fund reaches $8 billion.
Other states that use rainy day funds are Arizona, Florida, Idaho, Indiana, Kentucky, Nebraska, New Jersey, Tennessee, Virginia, and Wisconsin.
Rainy day funds are a terriffic idea....so much so that Michigan is considering creating a second rainy day fund just for education.
Dr. Mordrid
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