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Republican tom mcclintock says borrowing unconstitutional { November 19 2003 } Original Source Link: (May no longer be active)
http://www.washingtonpost.com/wp-dyn/articles/A59165-2003Nov18.htmlhttp://www.washingtonpost.com/wp-dyn/articles/A59165-2003Nov18.html
'Severe' Cuts Needed, Schwarzenegger Says
Governor Proposes California Borrow Up to $15 Billion
By Rene Sanchez
Washington Post Staff Writer
Wednesday, November 19, 2003; Page A03
SACRAMENTO, Nov. 18 -- California Gov. Arnold Schwarzenegger (R) unveiled key parts of his plan to solve the state's budget crisis Tuesday, proposing as much as $15 billion in borrowing and strict new limits on government spending.
On his first full day in office, as the Democratic-controlled legislature convened a special session at Schwarzenegger's request, the new governor also said "severe" budget cuts will be necessary to help erase California's huge budget deficit.
The first hours of Schwarzenegger's administration have been a whirlwind of activity, with a media swarm from around the world following the former film star's every move, and with lawmakers greeting him with a mixture of cheers and skepticism.
Since he was sworn into office Monday morning, Schwarzenegger has added nearly $4 billion to California's deficit by repealing the unpopular tripling of car taxes that state leaders put into effect earlier this year. He has suspended a range of new government regulations until further review, dismissed the director of the state's motor vehicle department and announced he will forsake his $175,000 salary as governor.
Late Tuesday, lawmakers began debating two other urgent requests the governor has made: to repeal a new state law granting illegal immigrants the right to have driver's licenses, and to revamp California's workers' compensation system.
Schwarzenegger presented his first detailed response to the state budget crisis in a lengthy question-and-answer session with reporters Tuesday. Two pillars of his plan would require approval from the legislature and voters: a constitutional amendment to cap state spending and a bond measure that would pay off the nearly $11 billion deficit that he has inherited.
Schwarzenegger said he has to resort to borrowing because he intends to keep his campaign pledges not to raise taxes and to spare education programs from budget cuts.
"I hate to do it," he said, "but this is our only choice."
To get his proposals on a state ballot by next spring, Schwarzenegger needs legislative approval in early December -- but there are already signs that could be difficult.
Lawmakers in both parties are questioning Schwarzenegger's interest in borrowing through a bond measure that would be paid off over the long term, calling it a risky move that would impose new financial burdens on Californians. Schwarzenegger did not mention the idea while campaigning in the state's historic recall election, which forced Democrat Gray Davis out of the governor's office.
State Sen. Tom McClintock, a prominent GOP conservative who also ran in the recall race, denounced the governor's proposal Tuesday as financially irresponsible and unconstitutional.
"It's morally reprehensible for one generation to party hearty and then hand the credit card over to the kids to pay off," McClintock said. "His campaign promise was to reduce spending. A bond measure is a tax increase on our children. They are going to have enough problems in the future without having to worry about paying this off."
State Senate President Pro Tem John Burton (D), one of the legislature's most senior and powerful members, also expressed reservations about Schwarzenegger's emerging budget plan. Burton warned that he would block any moves to cut spending on programs for the elderly, the disabled and children living in poverty.
Burton also said that even if lawmakers support putting a deficit bond on the ballot next year, Schwarzenegger still will have a hard time solving the state's budget problems because of his campaign promises.
"If you're going to hold the schools harmless," Burton said, "you're going to have to rob a bank."
Still, Schwarzenegger and Democratic lawmakers are getting off to a mostly cordial start. Many Democrats did not like Davis's impersonal governing style and say the new governor seems ready to listen and compromise.
Schwarzenegger has appointed several Democrats to prominent posts in his administration, and he made strong pleas for bipartisanship in his inaugural address. Some Democratic leaders are applauding the tone he is setting.
"I believed it when he said he wants to bring people together," Assembly Speaker Herb Wesson (D) told reporters Monday. "Now, the key: The devil is in the details. We're going to give the governor the benefit of the doubt, and we're going to work with him."
Schwarzenegger also said that he expects to get along well with lawmakers. "I don't think they want to derail me," he said Tuesday.
The debate over the budget will be an immediate test. Schwarzenegger will have few options if the legislature blocks his ballot proposals. But his borrowing strategy could appeal both to conservatives fearful of tax increases and liberals fearful of deep cuts to social programs.
Schwarzenegger made a fervent pitch for his plan Tuesday and said that he will announce other steps to solve the budget crisis later this month. He predicted that layoffs will be necessary but said he can "guarantee'' no state workers would be let go before Christmas. Schwarzenegger must submit his first state budget in early January.
"The need for action is immediate," he said. "Reckless overspending has brought the state to the brink of financial disaster."
Special correspondent Kimberly Edds in Los Angeles contributed to this report.
© 2003 The Washington Post Company
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