California Finally Gets a Budget

But of course, they did some stupid things along the way:

After nearly a full, and frustratingly painful, day of voting, the California State Legislature approved a solution to the state's projected $26.3 billion deficit Friday afternoon, effectively ending the Golden State's latest fiscal crisis.

"Both Republicans and Democrats stepped up to the challenge," said Gov. Arnold Schwarzenegger after the final votes were cast around 3 p.m. "Our job is not over, and I will continue to work with the Legislature to move California forward, to stimulate our economy and create jobs and to enact additional reforms that will make government more cost-effective for the taxpayers."

The plan approved by both houses of the Legislature is essentially the same one negotiated by Schwarzenegger and the four leaders of the State Legislature, with two exceptions.

The State Assembly failed to approve a proposal to allow slant drilling off the coast of Santa Barbara County, which would have netted the state $100 million annually. It also rejected a plan to take $2 billion in gas tax revenue from local governments over the next two years.

Assembly Democrats, led by Santa Barbara's Pedro Nava, opposed the oil drilling proposal while Assembly Republicans opposed the gas tax grab, which would have severely crippled local governments after the budget also borrowed $2 billion in local property tax revenue.

"I'm pleased that we got rid of … theft from local government," said Orange County Assemblyman Chuck DeVore, R-Irvine.

DeVore said he was "disappointed, but not surprised" that the oil proposal was defeated. DeVore proposed the oil drilling plan, which would have been the state's offshore oil project in more than 40 years.

Avoiding the gas tax grab means local governments will retain money they use to maintain streets. But local officials weren't totally mollified by the changes.
County officials said getting back the gas tax money is little consolation for a county that could still lose more than $75 million to the state.

"It's sort of like they didn't take all four of your tires, they just took three of them," said Orange County Supervisor John Moorlach.

The removal of the gas tax and the oil drilling plan, both of which were approved by the State Senate, leaves a $1.1 billion hole in the plan negotiated by the governor and the legislative leaders. The governor, using his line-item veto powers, is expected to make additional budget cuts to fill in some of the gap.

Oil drilling is so much safer than it was 40 years ago when there was a big spill in Santa Barbara, and given the need in this country for energy, turning down the slant drilling operation was simply foolish, but not out of character for State Dems. They've got their heads stuck in the past (and possibly somewhere else too).

There are still details to come about this. I'm sure there will be much complaining from the teacher's and prison guard's unions (aren't those the same thing??). Both have way too much power in California politics.