10,000 workers in Mexifornia to be laid off.

Let the recriminations begin.  Governor Arnold Schwarzenegger says that he will lay off 10,000 workers starting today and end the few remaining public-works projects still in progress as the California legislature failed to reach an agreement to hike taxes by over $14 billion in order to close a massive hole in state finances.  Republicans refused to go along:

With lawmakers still unable to deliver a budget after three days of intense negotiations, Gov. Arnold Schwarzenegger prepared to lay off 10,000 government workers and his administration said it would halt the last 275 state-funded public works projects still in operation.

The projects, which cost $3.8 billion and include upgrades to 18 bridges and roads in Los Angeles County to protect them from collapsing in earthquakes, had been allowed to continue as others were suspended because the state was running out of cash. …

Schwarzenegger had delayed sending out pink slips since Friday, hoping that lawmakers would soon approve a budget. But they failed Monday to find a third GOP vote in the state Senate to achieve the two-thirds majority needed to pass a budget — a requirement that essentially gives the minority Republicans veto power. A spokesman for Schwarzenegger said layoff notices would go out today. …

State Sen. Abel Maldonado (R-Santa Maria) was viewed as the most likely candidate to provide the final vote, but by Monday evening legislative leaders had not agreed to his demands. The dominant Democrats need three Republican votes in each house to pass the budget; leaders in the Assembly said the votes were available in the lower house.

In the tax revolt of the 1970s, conservatives managed to amend the state constitution to require supermajorities in each chamber for tax increases.  They intended to use that as a tool to force better fiscal discipline on state government — a great idea, but unfortunately ultimately ineffective.  California just found other ways to raise money, usually through fee hikes.  It also did nothing to control spending, as the state’s enormous $105 billion annual budget proves.

No TweetBacks yet. (Be the first to Tweet this post)

February 17, 2009 · Filed Under Uncategorized


Comments