Friday, May 14, 2004

On Gov. Schwarzeneggar in today's New York Times:

The budget deals are part of a pattern the governor has followed since he was inaugurated six months ago. Instead of slowly rolling bills uphill through the Legislature, Mr. Schwarzenegger has gone directly to the voters and interest groups and struck a separate peace.

The deals have left some legislators spluttering. But they cannot undo them without angering important constituents and contributors.

The governor said Thursday that by bringing together parties with claims on the budget he was gradually restoring the state's finances after three years of crisis. "I remain firmly opposed to tax increases, because no state can tax its way to prosperity or financial health,'' Mr. Schwarzenegger said in a statement. "A more positive business climate will pour revenues into our state treasury.''

With many of elected politicians' major constituencies already in the governor's pocket, there is little for lawmakers to do except ratify the governor's plan, analysts said.

"Arnold is looking at the big picture," said Bruce E. Cain, director of the Institute for Governmental Studies at the University of California, Berkeley. Mr. Cain added, "He skips the legislators who are merely at the beck and call of interest groups, and he talks to the interest groups directly."


I give him credit for his efficacy. But like me, treasurer Phil Angelides is waiting for the tab to come due:

"These deals with special interests are committing the state to a boatload of future debt, far beyond anything Gray Davis would have attempted or imagined," Mr. Angelides said. He said college students would pay sharply higher fees next year with no assurance that they would ever come down. In addition, he said, spending on social services and health care would be cut deeply so Mr. Schwarzenegger could keep his promise not to raise taxes.

But I imagine Gov S will wait as long as he can for an economic surge to make up the difference. Then if too many middle class parents object to the college fee hikes, he'll find some kind of regressive tax to appease them.

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