ENOUGH SCHWARTZENEGGER: CUT THE PORK OR GET OUT!

California Lawmakers: Take Your Debt Medicine – “Sovereignty” or “Bankruptcy”

Five years ago California’s Governator had a balanced budget amendment passed to solve the States wild spending programs.  In fact Schwarzenegger was elected because of the over spending poiicies of former Governor Grey Davis who was effectively impeached by public referendum.  However, it is clear that state legislature under Schwarzenegger’s guidance has continued to create more spending than the state could afford due to the fact the Governor signed on to the excessive spending with his executive pen.

Now Schwarzenegger wants California voters to sanction further debt by the passage of life saver legislation to infuse more money into the already broken political system of entitlement programs.

A product of the budget deal earlier this year Proposition 1A would boost the state’s rainy day fund, and invoke a spending cap and trigger the extension of recent tax hikes for up to two years. Proposition 1B would begin to restore cuts to schools if 1A is also approved.  Proposition 1C would allow officials to borrow $5 billion in state lottery money for general purposes. Propositions 1D and 1E would transfer money for budget use that currently is set aside for children’s and mental health services. Proposition F, the only one that polls show voters leaning toward approving, would ban raises for legislators and state officeholders in years when California runs a deficit.

Judith Younger, 49, a Santa Monica resident who works at LAX, said she had been leaning toward supporting at least Propositions 1A and 1B but changed her mind after reading “the fine print.” “I was discouraged and felt betrayed,” she said between spoonfuls of yogurt on the church’s front steps. “I don’t think it’s going to help.”

Schwarzenegger and other officials were trying to tamp down those sentiments. “We understand that anger,” the governor said. “We understand that frustration.”

If Schwarzenegger “understands” why did he go along with the lies and disinformation  in a continuation of spending policies of his impeached predecessor? Let us hope he “understands” why this bastardized legislative system needs its butt kicked.  Only then will all politicians BEGIN TO GET THE MESSAGE it is the people’s money and the train of debt has got to stop somewhere.  Why not in California!  Let California’s propositions fail!   Make the elected officials learn how to cut costs and run government more efficently! Let’s hope Californians are the first Americans to send a message to Washington, “We are mad as hell and we just won’t take it any more!”

But California has a contingency plan when these initiatives fail!  The State’s elected officials will give up more state sovereignty to the Federal Government to receive loan guarantees and other bail out dollars with all sorts of strings attached.  By fiat the federal government will ensure that liberal policies benefiting labor unions, special interest groups and others with Washington influence have their policies instituted at the revocation of laws already passed by the California legislature as a condition of financial assistance is a major string actually a hangman’s noose for the State and its population!

Michelle Malkin reports May 14, 2009, “that Barney Frank wants to Bailout California. Although Frank is in the process of drafting legislation that could create a long-term federal reinsurance program for municipal bonds, it isn’t clear what can get through Congress, or how quickly. Frank told Bloomberg News on Tuesday that he was “working with the administration now . . . to do something short-term” for California.

In a letter to U.S. Treasury Secretary Timothy F. Geithner, Lockyer asked the government to in effect guarantee the state’s debt against default, so that investors would be willing to provide the financing at reasonable interest rates…

“The enormous size of the required funding together with the state’s current credit condition and the continued weakness of the municipal finance market . . . make it highly unlikely that the state can access the short-term market for its borrowing based on its own credit,” Lockyer told Geithner.

As the state’s cash shortage has worsened in the recession, Lockyer has for months been lobbying for some kind of federal backstop on new debt issuance, which he has said should be extended to all state and local governments to help pare their borrowing costs.

Although critics say U.S. help for California would discourage the state from solving its structural budget problems, Lockyer has insisted that his plan wouldn’t be a federal handout. The state would pay a fee to the Treasury for the temporary backstop, he said.

Riiiiight. And next they’ll tell us that taxpayers will actually make money off this “investment.”

Message from taxpayers to Washington: Let California fail.