The Ghosts of 2004...

California

The Sacramento Bee reports today that Prop. 58, the measure sponsored by Gov. Schwarzenegger in 2004 as the so-called “California Balanced Budget Act” isn’t all it was cracked up to be. Schwarzenegger made a dizzying array of promises to skeptical voters in order to win passage of the measure. He said,

“California faces unprecedented budget deficits. Overspending has led to serious shortfalls which threatens the state’s ability to pay its bills and access financial markets. This proposition is a safeguard against this EVER HAPPENING AGAIN. Proposition 58 will prevent the Legislature from ENACTING BUDGETS THAT SPEND MORE MONEY THAN WE HAVE.”

As I told the Senate when it placed Prop. 58 on the ballot in December of 2003, the so-called “safeguards” were nothing more than an artful window-dressing of existing law – with one critical exception:

“Since statehood, the constitution has prevented one generation from passing on its day-to-day expenses to the next. This measure temporarily removes that provision so that you can do what no generation before you has ever dared to do: steal from the future.”

Four years later those warnings have borne out. While Proposition 58 is now being proven in practice to be a toothless watchdog, the Governor has just ordered another $3.3 billion of borrowing to finance his deficit spending – borrowing that Prop. 58 made possible with the promise it would only be used to retire Davis’ deficit and prevent it from “ever happening again.”

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